Legislature(2007 - 2008)Newhalen

09/24/2007 04:30 PM House FISHERIES


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04:44:27 PM Start
04:44:54 PM HB134
08:48:30 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Newhalen Teen Center
= HB 134 PROTECTION OF SALMON SPAWNING WATER
Heard & Held
<Teleconference Listen Only>
                    ALASKA STATE LEGISLATURE                                                                                  
              HOUSE SPECIAL COMMITTEE ON FISHERIES                                                                            
                        Newhalen, Alaska                                                                                        
                       September 24, 2007                                                                                       
                           4:44 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Paul Seaton, Chair                                                                                               
Representative Kyle Johansen                                                                                                    
Representative Craig Johnson                                                                                                    
Representative Gabrielle LeDoux                                                                                                 
Representative Peggy Wilson                                                                                                     
Representative Bryce Edgmon                                                                                                     
Representative Lindsey Holmes                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                                
Representative Carl Gatto                                                                                                       
Representative Mark Neuman                                                                                                      
Representative Bob Roses                                                                                                        
Representative Scott Kawasaki                                                                                                   
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 134                                                                                                              
"An Act relating to conservation and protection of wild salmon                                                                  
production in drainages affecting the Bristol Bay Fisheries                                                                     
Reserve; and providing for an effective date."                                                                                  
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 134                                                                                                                  
SHORT TITLE: PROTECTION OF SALMON SPAWNING WATER                                                                                
SPONSOR(s): REPRESENTATIVE(s) EDGMON                                                                                            
                                                                                                                                
02/14/07       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/14/07       (H)       FSH, RES                                                                                               
02/28/07       (H)       FSH AT 8:30 AM BARNES 124                                                                              
02/28/07       (H)       Heard & Held                                                                                           
02/28/07       (H)       MINUTE(FSH)                                                                                            
03/02/07       (H)       FSH AT 8:30 AM BARNES 124                                                                              
03/02/07       (H)       Heard & Held                                                                                           
03/02/07       (H)       MINUTE(FSH)                                                                                            
03/05/07       (H)       FSH AT 8:30 AM BARNES 124                                                                              
03/05/07       (H)       Heard & Held                                                                                           
03/05/07       (H)       MINUTE(FSH)                                                                                            
05/09/07       (H)       FSH AT 8:30 AM BARNES 124                                                                              
05/09/07       (H)       Heard & Held                                                                                           
05/09/07       (H)       MINUTE(FSH)                                                                                            
09/24/07       (H)       FSH AT 4:30 PM Newhalen                                                                                
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
RAYMOND WASSILLIE, President                                                                                                    
Newhalen Tribal Council                                                                                                         
Newhalen, Alaska                                                                                                                
POSITION STATEMENT:  Testified in opposition to HB 134, and                                                                   
responded to questions.                                                                                                         
                                                                                                                                
GLEN ALSWORTH, Mayor                                                                                                            
Lake and Peninsula Borough                                                                                                      
Port Alsworth, Alaska                                                                                                           
POSITION STATEMENT:  Provided a traditional community welcoming                                                               
ceremony to honor the committee.                                                                                                
                                                                                                                                
AGNES RYCHNOVSKY                                                                                                                
Iliamna, Alaska                                                                                                                 
POSITION STATEMENT:  Testified in opposition to HB 134.                                                                       
                                                                                                                                
JUNE TRACEY                                                                                                                     
Nondalton, Alaska                                                                                                               
POSITION STATEMENT:  Testified on HB 134.                                                                                     
                                                                                                                                
MYRTLE ANELON                                                                                                                   
Iliamna, Alaska                                                                                                                 
POSITION STATEMENT:  Testified in opposition to HB 134.                                                                       
                                                                                                                                
LISA REIMERS                                                                                                                    
Iliamna, Alaska                                                                                                                 
POSITION STATEMENT:  Testified in opposition to HB 134.                                                                       
                                                                                                                                
NANCY DELKITTIE                                                                                                                 
Nondalton, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 134.                                                                          
                                                                                                                                
TERRY WASSILLIE, Secretary                                                                                                      
Newhalen Tribal Council                                                                                                         
Newhalen, Alaska                                                                                                                
POSITION STATEMENT:  Testified in opposition to HB 134.                                                                       
                                                                                                                                
LYDIA OLYMPIC                                                                                                                   
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 134, and                                                                      
responded to questions.                                                                                                         
                                                                                                                                
BELLA HAMMOND                                                                                                                   
Port Alsworth, Alaska                                                                                                           
POSITION STATEMENT:  Testified in support of HB 134, and                                                                      
responded to questions.                                                                                                         
                                                                                                                                
[Inaudible]                                                                                                                     
[Location unknown], Alaska                                                                                                      
POSITION STATEMENT:  Testified in support of HB 134.                                                                          
                                                                                                                                
CHARLOTTE BALLUTA, Environmental Coordinator                                                                                    
Nondalton, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 134.                                                                          
                                                                                                                                
RICK DELKITTIE SR.                                                                                                              
Nondalton, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 134.                                                                          
                                                                                                                                
DAN OBERLATZ, Owner                                                                                                             
Alaska Alpine Adventures                                                                                                        
Vice President                                                                                                                  
Alaska Wilderness Recreation and Tourism Association                                                                            
POSITION STATEMENT:  Testified in support of HB 134, and                                                                      
responded to questions.                                                                                                         
                                                                                                                                
BETTY WEIKEL                                                                                                                    
Port Alsworth, Alaska                                                                                                           
POSITION STATEMENT:  Testified in support of HB 134, and                                                                      
responded to questions.                                                                                                         
                                                                                                                                
DAN SALMON, Member                                                                                                              
Igiugig Village Council (IVC)                                                                                                   
Igiugig, Alaska                                                                                                                 
POSITION STATEMENT:  Testified in opposition to HB 134.                                                                       
                                                                                                                                
SHAR (ph) [Inaudible]                                                                                                           
[Location unknown]                                                                                                              
POSITION STATEMENT:  Testified on HB 134.                                                                                     
                                                                                                                                
STEVE KAHN                                                                                                                      
Port Alsworth, Alaska                                                                                                           
POSITION STATEMENT:  Testified in support of HB 134.                                                                          
                                                                                                                                
MASSA GUMLICKPUK                                                                                                                
New Stuyahok                                                                                                                    
POSITION STATEMENT:  Testified in support of HB 134.                                                                          
                                                                                                                                
ANNE CORAY                                                                                                                      
Port Alsworth, Alaska                                                                                                           
POSITION STATEMENT:  Testified in support of HB 134.                                                                          
                                                                                                                                
BRADLEY BOND                                                                                                                    
New Stuyahok, Alaska                                                                                                            
POSITION STATEMENT:  Testified in support of HB 134.                                                                          
                                                                                                                                
BILL TREFON SR.                                                                                                                 
Port Alsworth, Alaska                                                                                                           
POSITION STATEMENT:  Testified in support of HB 134.                                                                          
                                                                                                                                
KIM WILLIAMS, Member                                                                                                            
Tribal Council                                                                                                                  
Dillingham, Alaska                                                                                                              
POSITION STATEMENT:  Testified in support of HB 134.                                                                          
                                                                                                                                
NATALIA BLUNKA                                                                                                                  
New Stuyahok, Alaska                                                                                                            
POSITION STATEMENT:  Testified in support of HB 134.                                                                          
                                                                                                                                
WASSILLIE CHUNAK SR.                                                                                                            
New Stuyahok, Alaska                                                                                                            
POSITION STATEMENT:  Testified on HB 134.                                                                                     
                                                                                                                                
TIMOTHY WONHOLA SR.                                                                                                             
New Stuyahok, Alaska                                                                                                            
POSITION STATEMENT:  Testified in support of HB 134.                                                                          
                                                                                                                                
[Inaudible]                                                                                                                     
Nushagak, Alaska                                                                                                                
POSITION STATEMENT:  Testified in support of HB 134.                                                                          
                                                                                                                                
[Inaudible]                                                                                                                     
[Location unknown]                                                                                                              
POSITION STATEMENT:  Testified in support of HB 134.                                                                          
                                                                                                                                
KATHLEEN WONHOLA                                                                                                                
New Stuyahok, Alaska                                                                                                            
POSITION STATEMENT:  Testified in support of HB 134.                                                                          
                                                                                                                                
SALLY GUMLICKPUK                                                                                                                
New Stuyahok, Alaska                                                                                                            
POSITION STATEMENT:  Testified in support of HB 134.                                                                          
                                                                                                                                
ALEXIE GUST SR.                                                                                                                 
New Stuyahok, Alaska                                                                                                            
POSITION STATEMENT:  Testified on HB 134.                                                                                     
                                                                                                                                
[Inaudible], Union President                                                                                                    
Lake Clark, Alaska                                                                                                              
POSITION STATEMENT:  Testified on HB 134, and responded to                                                                    
questions.                                                                                                                      
                                                                                                                                
MICHELLE HOPE RAVENMOON                                                                                                         
Port Alsworth, Alaska                                                                                                           
POSITION STATEMENT:  Testified in support of HB 134.                                                                          
                                                                                                                                
KEITH JENSEN, President                                                                                                         
Pedro Bay Village Council                                                                                                       
Pedro Bay, Alaska                                                                                                               
POSITION STATEMENT:  During hearings on HB 134 provided                                                                       
information regarding Pedro Bay, and responded to questions.                                                                    
                                                                                                                                
MARVIN BALLUTA                                                                                                                  
Nondalton, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 134.                                                                          
                                                                                                                                
SERGIE CHUKWAK                                                                                                                  
Levelock, Alaska                                                                                                                
POSITION STATEMENT:  Testified on HB 134, and made                                                                            
recommendations.                                                                                                                
                                                                                                                                
[Inaudible]                                                                                                                     
[Location unknown]                                                                                                              
POSITION STATEMENT:  Testified in support of HB 134.                                                                          
                                                                                                                                
[Inaudible], President                                                                                                          
Nondalton Village Council                                                                                                       
Nondalton, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 134.                                                                          
                                                                                                                                
JAMES LAMONT                                                                                                                    
Iliamna, Alaska                                                                                                                 
POSITION STATEMENT:  Testified in opposition to HB 134, and                                                                   
responded to questions.                                                                                                         
                                                                                                                                
THOMAS TILDEN, Member                                                                                                           
Nunumta [Aulukestai]                                                                                                            
Dillingham, Alaska                                                                                                              
POSITION STATEMENT:  Testified in support of HB 134, and made                                                                 
recommendations.                                                                                                                
                                                                                                                                
BRIAN KRAFT, Board Member                                                                                                       
Renewable Resources Coalition                                                                                                   
Remote Fishing Lodge Owner                                                                                                      
Representative, Bristol Bay Alliance                                                                                            
Director for Southwest Alaska Trout Unlimited                                                                                   
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 134, made                                                                     
recommendations, and responded to questions.                                                                                    
                                                                                                                                
GEORGE HORNBERGER                                                                                                               
Iliamna, Alaska                                                                                                                 
POSITION STATEMENT:  Testified in opposition to HB 134.                                                                       
                                                                                                                                
MICHAEL BORLESKE                                                                                                                
Nondalton, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HB 134.                                                                       
                                                                                                                                
[Inaudible], President                                                                                                          
Iliamna Native (indisc.)                                                                                                        
Iliamna, Alaska                                                                                                                 
POSITION STATEMENT:  Testified in opposition to HB 134.                                                                       
                                                                                                                                
SEAN MAGEE, Vice President of Public Affairs                                                                                    
Partnership Spokesperson                                                                                                        
Northern Dynasty Mine                                                                                                           
POSITION STATEMENT:  Testified in opposition to HB 134, and                                                                   
responded to questions.                                                                                                         
                                                                                                                                
DR. CAROL ANN WOODY, Owner                                                                                                      
Fisheries Research and Consulting                                                                                               
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 134.                                                                          
                                                                                                                                
CHIP [CHARLES] EMBRETSON                                                                                                        
Iliamna, Alaska                                                                                                                 
POSITION STATEMENT:  Testified on HB 134.                                                                                     
                                                                                                                                
MIKE TREFON                                                                                                                     
Nondalton, Alaska                                                                                                               
POSITION STATEMENT:  During hearings on HB 134 inquired about                                                                 
the process.                                                                                                                    
                                                                                                                                
[Inaudible]                                                                                                                     
[Location unknown]                                                                                                              
POSITION STATEMENT:  Testified in opposition to HB 134.                                                                       
                                                                                                                                
[Inaudible]                                                                                                                     
Iliamna, Alaska                                                                                                                 
POSITION   STATEMENT:      Answered  questions   on   the   video                                                             
presentation provided by the Iliamna Development Corporation.                                                                   
                                                                                                                                
ED FOGELS, Acting Director                                                                                                      
Office of Project Management & Permitting                                                                                       
Department of Natural Resources                                                                                                 
POSITION STATEMENT:   Provided a  slide presentation  titled "The                                                             
Process and  Requirements for Large  Mine Permit  Applications in                                                               
Alaska," and responded to questions.                                                                                            
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR  PAUL   SEATON  called  the  House   Special  Committee  on                                                             
Fisheries  meeting  to  order at  4:44:27  PM.    Representatives                                                             
Seaton,  Wilson, Johnson,  Johansen, LeDoux,  Holmes, and  Edgmon                                                               
were  present at  the  call to  order.   Representatives  Neuman,                                                               
Gatto, Kawasaki, and Roses were also in attendance.                                                                             
                                                                                                                                
HB 134-PROTECTION OF SALMON SPAWNING WATER                                                                                    
                                                                                                                                
4:44:54 PM                                                                                                                    
                                                                                                                                
CHAIR SEATON announced  that the only order of  business would be                                                               
HOUSE  BILL  NO.  134,  "An  Act  relating  to  conservation  and                                                               
protection of  wild salmon production in  drainages affecting the                                                               
Bristol  Bay Fisheries  Reserve; and  providing for  an effective                                                               
date."                                                                                                                          
                                                                                                                                
[The  motion  to  adopt  CSHB  134,  Version  25-LS0381\M,  Kane,                                                               
2/22/07, was left pending at the 2/28/07 meeting.]                                                                              
                                                                                                                                
CHAIR SEATON  reviewed the  various water  use questions  and the                                                               
two  major aspects  of HB  134:   The protection  of salmon,  and                                                               
other  fish habitat,  encompassing  the  protection of  renewable                                                               
resources in Bristol Bay;  and the use of HB 134  as a vehicle to                                                               
prevent the  development of a large  scale mine in the  area.  He                                                               
clarified that this hearing is not  on the Pebble Mine but rather                                                               
on  the  legislation  as  it  relates  to  water  usage  and  the                                                               
fisheries.  He  acknowledged that there has  been discussion with                                                               
regard to  conflicts of interest  and pointed out  that witnesses                                                               
need to  identify who  they represent.   Finally, he  invited the                                                               
prime  sponsor of  the  bill  to speak  prior  to opening  public                                                               
testimony.                                                                                                                      
                                                                                                                                
4:48:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EDGMON thanked  everyone  for  coming forward  to                                                               
participate, particularly  the significant number  of legislators                                                               
present.   He acknowledged  that the Pebble  Mine is  the impetus                                                               
for   this  legislation.      The   economic  and   environmental                                                               
ramifications of the Pebble Mine  project have brought together a                                                               
gallery that  represents diverse  opinions, regarding  the future                                                               
of the  region.  He characterized  HB 134 as a  work in progress,                                                               
with issues important enough to have  a series of hearings in the                                                               
region.   This legislation addresses  an important  crossroads in                                                               
terms  of  policy:    whether   to  institute  higher  levels  of                                                               
protection for waters  that support the areas  salmon habitat via                                                               
the five  major drainages  to Bristol Bay.   The  existing policy                                                               
provides   for  other   industrial   use   purposes,  which   may                                                               
significantly   compromise   salmon   habitat.     The   economic                                                               
difficulties  of  the  region include  school  closures,  and  he                                                               
acknowledged  that these  issues would  be brought  to the  fore,                                                               
during the discussion of this bill.                                                                                             
                                                                                                                                
4:51:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EDGMON related  that when  doing research  for HB
134,  statute was  discovered that  established  the Bristol  Bay                                                               
Fisheries Reserve;  Senator Hammond 1972.   The statute specifies                                                               
that surface  entry permit, to  develop oil  and gas, may  not be                                                               
issued on state owned/controlled land  until the legislature, via                                                               
resolution, finds that  such entry will not  constitute danger to                                                               
the fishery.   This  foresight, he opined,  provides a  guide for                                                               
including further protective measures,  with strict penalties for                                                               
use  of water  that would  be detrimental  to salmon.   Directing                                                               
attention  to HB  134, [Version  M], page  2, Sec.  16.10.015, he                                                               
paraphrased the subsection and paragraphs, which read:                                                                          
                                                                                                                                
       ...within the watersheds of the Nushagak, Kvichak,                                                                       
     Naknek, Egegik, and Ugashik Rivers, a person may not                                                                       
          (1)    withdraw,    obstruct,   divert,    inject,                                                                    
                 pollute,  or pump,  either  temporarily  or                                                                    
                 permanently,  any  subsurface   or  surface                                                                    
                 water in drainages supporting salmon or any                                                                    
                 water   hydrologically    interrelated   or                                                                    
                connected to those drainages; or                                                                                
          (2)    alter, destroy displace, relocate, channel,                                                                    
                 dam,  convert  to dry  land,  or  otherwise                                                                    
                 adversely affect  any portion  of a  river,                                                                    
                 stream, lake, bog, tributary,  or any other                                                                    
                 water  body  including the  beds  of  water                                                                    
                 bodies, in drainages supporting salmon.                                                                        
                                                                                                                                
REPRESENTATIVE   EDGMON  stressed   that  the   intent  of   this                                                               
legislation    is    to    protect   salmon    habitat    without                                                               
disenfranchising existing  uses that  are essential  to community                                                               
life and development.  To that  end, six areas of exemptions have                                                               
been included  in the bill,  with the understanding  that further                                                               
exemptions  may  be necessary.    The  legislation also  includes                                                               
penalties for  violations, which he said,  are monetarily strict.                                                               
He stressed  the need  to consider  this area  as the  last great                                                               
sockeye salmon producing area "on  earth" and rhetorically asked,                                                               
"To  what ends  should  it be  protected."   This  is the  policy                                                               
question    before   the    community   and    the   legislature.                                                               
Representative Edgmon said he looked  forward to hearing comments                                                               
and suggestions  that will be  utilized to produce a  final piece                                                               
of legislation,  serving the  constituents as  well as  the state                                                               
constitution.                                                                                                                   
                                                                                                                                
CHAIR   SEATON  opened   public  testimony   and  explained   the                                                               
parameters for speaking.                                                                                                        
                                                                                                                                
4:58:06 PM                                                                                                                    
                                                                                                                                
RAYMOND  WASSILLIE, President,  Newhalen  Tribal Council,  stated                                                               
resistance to the  bill, not because of the mine,  but because of                                                               
what will happen when the mine  is closed.  The area in question,                                                               
he pointed out, is between his  home and where his family gathers                                                               
subsistence food.  He said that  he can't afford to pay the fines                                                               
that he would incur when passing  over these areas to reach these                                                               
traditional use  areas.   He questioned  how he  will be  able to                                                               
maintain a wilderness, survival cabin,  which he has had for many                                                               
years, or  continue boating  activities that  allow him  to check                                                               
his subsistence  fishing nets.   Further, he questioned  how this                                                               
legislation  allows  him and  his  grandchildren  to continue  to                                                               
survive in  traditional ways.  "What  is going to become  of us,"                                                               
he asked.                                                                                                                       
                                                                                                                                
CHAIR  SEATON  pointed  that  page  2, line  13,  refers  to  the                                                               
disallowance to "convert to dry land",  and asked if this is what                                                               
the concern is for being able to build a cabin.                                                                                 
                                                                                                                                
MR. WASSILLIE  replied yes, as  most of the  land in the  area is                                                               
bog.                                                                                                                            
                                                                                                                                
5:03:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EDGMON underscored that the  intent of the bill is                                                               
not  to prohibit  any  of the  historical,  ordinary, daily  life                                                               
activities in the  area.  He directed attention to  page 2, lines                                                               
17-23, listing  the exemptions, and  offered assurance  that this                                                               
list will be expanded upon,  should an oversight exist that would                                                               
hamper traditional existence.                                                                                                   
                                                                                                                                
MR. WASSILLIE said that, as he  reads the bill, it is a violation                                                               
of his  "living rights."   Additionally,  he noted,  although the                                                               
legislation doesn't  refer to the  mine, that's what  it's about.                                                               
Why  then, he  questioned,  doesn't the  legislature address  the                                                               
mine   directly  and   not  disturb   the  residents   and  their                                                               
traditional uses.                                                                                                               
                                                                                                                                
5:06:08 PM                                                                                                                    
                                                                                                                                
GLEN ALSWORTH, Mayor, Lake and  Peninsula Borough, introduced the                                                               
village  elders  and  New  Stuyahok   Dancers,  who  performed  a                                                               
traditional  song and  dance on  behalf  of the  visitors to  the                                                               
community.                                                                                                                      
                                                                                                                                
[Singing]                                                                                                                       
                                                                                                                                
CHAIR  SEATON   requested  that  the  drummers   and  dancers  be                                                               
introduced individually.                                                                                                        
                                                                                                                                
[Introductions were made - inaudible.]                                                                                          
                                                                                                                                
5:14:39 PM                                                                                                                    
                                                                                                                                
CHAIR  SEATON made  public  announcements  regarding fire  exits,                                                               
testimony submission,  and the bill  history and  legal resources                                                               
available in the room.                                                                                                          
                                                                                                                                
AGNES  RYCHNOVSKY cited  the necessity  for jobs  in the  area as                                                               
well as the  need to maintain subsistence uses.   She stated that                                                               
this  bill will  restrict  the ability  of  the Newhalen  village                                                               
residents  from accessing  their  traditional gathering  grounds.                                                               
The hunters, she  said, will be prohibited  from crossing streams                                                               
to hunt the game.  Further,  it would restrict the development of                                                               
a small  dock, which would  allow easy  access from the  water to                                                               
the land in the north fork of the (indisc.) River.                                                                              
                                                                                                                                
5:20:50 PM                                                                                                                    
                                                                                                                                
JUNE TRACEY  asked if legislation  restricts everyone  from going                                                               
on this reserve.                                                                                                                
                                                                                                                                
CHAIR  SEATON  replied that  the  restrictions  do not  apply  to                                                               
crossing the land,  but noted that it would  prevent the building                                                               
of dams,  or creation  of dry  land, for  road building  or other                                                               
purposes.                                                                                                                       
                                                                                                                                
MS. TRACEY stressed that the  land and rivers are the supermarket                                                               
for the  area.  Land and  water are more precious  than the gold,                                                               
she  said.   Restrictions  on  hunting or  fishing  would not  be                                                               
acceptable, but  she conceded that  her understanding of  how the                                                               
bill effects those activities is limited.                                                                                       
                                                                                                                                
5:23:42 PM                                                                                                                    
                                                                                                                                
MYRTLE  ANELON  stated appreciation  for  being  included in  the                                                               
process of creating this legislation.   People who do not live in                                                               
the area are  expressing opinions as though they  know more about                                                               
living here than the residents, she said.                                                                                       
                                                                                                                                
CHAIR SEATON  noted the  schedule for the  meetings in  the local                                                               
area,  which are  intended to  garner  as much  local opinion  as                                                               
possible.                                                                                                                       
                                                                                                                                
5:25:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EDGMON  asked the witness to  directly address the                                                               
issue of water use and protection.                                                                                              
                                                                                                                                
MS. ANELON  replied that the  community has a  (indisc.) program.                                                               
[Inaudible.]  The  water is never clean.  At  low water times, in                                                               
the river,  she continued, bags  of lead  can be picked  up, from                                                               
the sport  fishing activities  of the season.   People  who don't                                                               
live here may not be aware of this pollution, she surmised.                                                                     
                                                                                                                                
5:28:20 PM                                                                                                                    
                                                                                                                                
LISA  REIMERS  provided  a  video of  the  Bristol  Bay  concerns                                                               
regarding  the fishing  industry, and  other activities  that are                                                               
routine to the area.  She asked whether it could be viewed.                                                                     
                                                                                                                                
REPRESENTATIVE  SEATON held  that the  video would  be shown,  in                                                               
conjunction with  a large mine  permitting presentation,  by DNR,                                                               
as a wrap up to the day's public testimony.                                                                                     
                                                                                                                                
MS. REIMERS inquired if the  bill sponsor had solicited community                                                               
opinion, prior to the drafting process.                                                                                         
                                                                                                                                
REPRESENTATIVE   EDGMON   reiterated    the   intent   of   these                                                               
proceedings.                                                                                                                    
                                                                                                                                
MS. REIMERS  queried again,  prior to drafting  the bill,  did he                                                               
make the effort to solicit opinion.                                                                                             
                                                                                                                                
REPRESENTATIVE EDGMON  stated that  three days of  testimony were                                                               
taken in Juneau [2/28/07, 3/02/07, and 3/05/07].                                                                                
                                                                                                                                
MS.  REIMERS  stressed  how  that  did not  occur  in  the  local                                                               
communities.   The  fines are  exorbitant, she  pointed out,  for                                                               
someone  trying to  cross the  land to  get to  their traditional                                                               
berry patch.   She stated her  opposition to HB 134,  as it would                                                               
create more hardships on those in the region.                                                                                   
                                                                                                                                
5:30:44 PM                                                                                                                    
                                                                                                                                
CHAIR  SEATON stressed  the importance  for testimony  to provide                                                               
individual  opinion  vs.  dialoguing with,  or  questioning,  the                                                               
representatives.   Further,  he pointed  out that,  although this                                                               
hearing is  being made  available throughout  the state,  via the                                                               
Legislative  Information Office  broadcast, testimony  would only                                                               
be taken from the audience.                                                                                                     
                                                                                                                                
5:31:52 PM                                                                                                                    
                                                                                                                                
NANCY DELKITTIE said:   "I want to support this  bill, because it                                                               
(indisc.) clean  water."  [Inaudible.]   We rely  on subsistence,                                                               
she continued.  [Inaudible.]  She  related that she lives here by                                                               
choice, and the majority of her diet is subsistence foods.                                                                      
                                                                                                                                
5:33:28 PM                                                                                                                    
                                                                                                                                
TERRY  WASSILLIE, Secretary,  Newhalen Tribal  Council, testified                                                               
in opposition to HB 134,  highlighting that, in order to practice                                                               
a subsistence  life style  residents must  traverse the  land and                                                               
water;  crossing   multiple  streams.     [Inaudible.]     Future                                                               
generations  should have  the same  opportunity.   Regarding  the                                                               
sponsor's  comments  for  protecting  the water  (indisc.).    He                                                               
recalled  the  restrictions that  have  occurred  since the  Lake                                                               
Clark National  Park and Reserve  was instituted.  The  state has                                                               
restricted  residents  from  utilizing  their  private  property.                                                               
This  legislation   will  also   impact  commercial   fishing  by                                                               
increasing costs.                                                                                                               
                                                                                                                                
REPRESENTATIVE  EDGMON clarified  that since  1972 state  statute                                                               
has  included   the  Bristol  Bay  Fisheries   Reserve,  and  the                                                               
restrictions  are  only in  place  for  land  based oil  and  gas                                                               
development.   Additionally,  he pointed  out that  this bill  is                                                               
designed to protect  subsistence use.  He  expressed concern that                                                               
the  bill  is  either  not  being read,  or  not  understood,  as                                                               
indicated  by   the  citizen  levels   of  concern,   that  their                                                               
subsistence life style will be jeopardized.                                                                                     
                                                                                                                                
MR. WASSILLIE inquired (indisc.).                                                                                               
                                                                                                                                
5:38:13 PM                                                                                                                    
                                                                                                                                
LYDIA OLYMPIC  paraphrased from a prepared  statement, which read                                                               
as follows [original punctuation provided]:                                                                                     
                                                                                                                                
     Thank  you,  Chairman  Seaton and  representatives  for                                                                    
     giving us opportunity to tell you our stories.                                                                             
                                                                                                                                
     I am  from Igiugig, Alaska top  of the Kvichak.   As of                                                                    
     June  2006  I've moved  to  Anchorage,  AK.   I  didn't                                                                    
     realize  how precious  our sockeye  salmon was  until I                                                                    
     moved away.  I thought  everyone in this world had this                                                                    
     incredible gift  of crystal  clear waters  and abundant                                                                    
     salmon in their rivers and backyard.                                                                                       
                                                                                                                                
     The  Frazier River  fishery in  British Columbia  is in                                                                    
     decline  and  this  year  many  natives  chose  not  to                                                                    
     subsistence fish because of low returns.                                                                                   
                                                                                                                                
     I've served on  EPA's [Environmental Protection Agency]                                                                    
     National  Tribal  Operations   Committee  and  Regional                                                                    
     Tribal Operations committee  for six years.   I was one                                                                    
     of  19  elected  nationwide  to serve  as  an  advisory                                                                    
     council to EPA on Indian country issues.                                                                                   
                                                                                                                                
     I saw  first hand  on how  these rules  and regulations                                                                    
     that  are  there  to protect  us,  our  fisheries,  our                                                                    
     lands, and  our environment  can be  changed by  who is                                                                    
     elected  and their  administration.    For example  the                                                                    
     Bush administration changed  the wording from hazardous                                                                    
     waste to  fill and now  industries can dump  their fill                                                                    
     into a freshwater lake/stream such  as the Lower Slater                                                                    
     Lake or  by changing the air  particulate matter 2.5-10                                                                    
     so  that   the  mining  industries,   agriculture,  and                                                                    
     fugitive  dust  are  exempt in  populations  less  than                                                                    
     100,000.                                                                                                                   
                                                                                                                                
     That is on  the federal side now on the  state side for                                                                    
     example moving the habitat division  over to DNR or the                                                                    
     mixing  zone   regulation  changed  by   the  Murkowski                                                                    
     administration.                                                                                                            
                                                                                                                                
     We must  do all that  we can to protect  our fisheries,                                                                    
     our culture, our fresh water,  and our way of life that                                                                    
     is why I  support this bill and we  all appreciate your                                                                    
     support and thank you for your time.                                                                                       
                                                                                                                                
5:41:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   LEDOUX  asked   whether   she   would  be   more                                                               
comfortable  with  the  Pebble   Mine  permitting  process  going                                                               
forward, if the  Office of Habitat Management  and Permitting was                                                               
a division  under Department of  Fish and Game (ADF&G)  vs. under                                                               
its current placement within the  Department of Natural Resources                                                               
(DNR).                                                                                                                          
                                                                                                                                
MS.  OLYMPIC  replied,  "Yes."     [Inaudible.]    I  don't  feel                                                               
comfortable with  the location of  DNR and (indisc.),  who worked                                                               
for the mining commission.                                                                                                      
                                                                                                                                
5:43:00 PM                                                                                                                    
                                                                                                                                
BELLA  HAMMOND recalled  her  earliest  memories, which  revolved                                                               
around  the  fisheries.    She  opined  that  the  fisheries  are                                                               
threatened, and  require a  high priority  of protection.   Clean                                                               
water  and  a  healthy  fishery  are  mutualistic,  and  a  major                                                               
concern, for  the local subsistence  life style.  A  major threat                                                               
is  looming.   She mentioned  that a  ripple effect  could occur,                                                               
throughout  the  fishing  industry,   should  the  perception  of                                                               
polluted waters stain  the reputation of the  wild caught salmon.                                                               
People  will  not be  comfortable,  if  they are  concerned  with                                                               
whether the  fish are safe to  eat, she said.   She expressed the                                                               
need to be clear with any legislation addressing water.                                                                         
                                                                                                                                
CHAIR SEATON pointed  out that currently oil  and gas development                                                               
is not allowed,  but mining is; HB 134 would  lift energy project                                                               
restrictions and  disallow mining development.   He asked  if the                                                               
aforementioned could be considered beneficial to the region.                                                                    
                                                                                                                                
MS. HAMMOND responded that this  region should be a top priority,                                                               
as "there is  no other place like it on  earth."  Everything that                                                               
can  be  done,  should  be   done,  to  protect  this  area,  she                                                               
maintained.                                                                                                                     
                                                                                                                                
5:50:27 PM                                                                                                                    
                                                                                                                                
[Inaudible]  stated,  "I  am absolutely  for  this  legislation."                                                               
[Inaudible.]   Subsistence is a  priority, and  her understanding                                                               
of this bill  indicates that it will help to  protect that way of                                                               
life, while insuring the quality of the water.                                                                                  
                                                                                                                                
CHAIR SEATON  reminded the witnesses  that their opinions  on the                                                               
water, and water  resources, in connection with HB  134, would be                                                               
helpful to the committee.                                                                                                       
                                                                                                                                
CHARLOTTE BALLUTA,  Environmental Coordinator,  said, "Yes,  I do                                                               
support the HB 134."                                                                                                            
                                                                                                                                
5:56:49 PM                                                                                                                    
                                                                                                                                
RICK DELKITTIE SR.,  said, "I back HB 134, to  protect our rivers                                                               
and streams (indisc.).   I will fight to protect  my land and the                                                               
water (indisc.).                                                                                                                
                                                                                                                                
5:58:39 PM                                                                                                                    
                                                                                                                                
DAN  OBERLATZ,  Owner,  paraphrased from  a  prepared  statement,                                                               
which read as follows [original punctuation provided]:                                                                          
                                                                                                                                
     For the  last 15  years I've  been fortunate  enough to                                                                    
     call this  area home,  and, for the  last 10  years, to                                                                    
     share this world class destination  with a multitude of                                                                    
     tourists each year.                                                                                                        
                                                                                                                                
     The superlatives  that define  this area of  Alaska are                                                                    
     simply  staggering.    Both the  Kvichak  and  Nushagak                                                                    
     rivers are  home to the world's  largest sockeye salmon                                                                    
     fishery   and  Alaska's   most  prolific   chinook  run                                                                    
     respectively.    Just  downstream  from  this  proposed                                                                    
     development is  Alaska's first designated  trophy trout                                                                    
     area and all  5 species of pacific salmon  can be found                                                                    
     in  these local  waters.   Iliamna Lake  is one  of two                                                                    
     lakes on  earth to harbor a  freshwater seal population                                                                    
     and the  Mulchatna Caribou herd, sometimes  the state's                                                                    
     largest, roams these vast  tundra expanses each season.                                                                    
     The area  has been home to  vibrant indigenous cultures                                                                    
     for thousands of years who  have relied on this bounty.                                                                    
     The  region  also  boasts   a  thriving  and  expanding                                                                    
     tourism  market and  world  renowned and  reinvigorated                                                                    
     commercial   fishery.     Both  of   these  sustainable                                                                    
     industries  employ  locals   and  contribute  literally                                                                    
     hundreds of  millions of dollars annually  to local and                                                                    
     state economies.                                                                                                           
                                                                                                                                
     It's an unfair mischaracterization  to suggest that our                                                                    
     decision to  question this project is  simply knee-jerk                                                                    
     reaction to "fear  mongering", that we are  in some way                                                                    
     firing "aimless  broadsides" at the mining  industry or                                                                    
     DNR,  or that  we  are attempting  to prevent  Northern                                                                    
     Dynasty from being  allowed its "due process."   To the                                                                    
     contrary,  most of  us here  have  drawn well  informed                                                                    
     conclusions   about   Pebble    based   on   compelling                                                                    
     historical  evidence pointing  to  an industry  riddled                                                                    
     with accidents and broken promises.                                                                                        
                                                                                                                                
     We, your constituents,  need your help.   There are too                                                                    
     many examples  of modern  pit mines  gone bad  in other                                                                    
     parts  of the  world, and  we simply  cannot afford  to                                                                    
     make a single mistake  and risk destroying this fishery                                                                    
     and the people  who live from it.  We  must insure that                                                                    
     any company  involved in  a non-sustainable  industry -                                                                    
     Canadian  or  otherwise,  who intends  to  exploit  and                                                                    
     profit from  the non-renewable  resources here  is held                                                                    
     to  the  highest  possible  environmental  standards  -                                                                    
     standards designed specifically  to protect and nurture                                                                    
     resources  and   industries  that  are   renewable  and                                                                    
     sustainable.                                                                                                               
                                                                                                                                
     This is  absolutely critical.  Furthermore,  we need to                                                                    
     make certain  that if  a mine  is ever  permitted, each                                                                    
     and  every one  of  us can  rest  assured knowing  that                                                                    
     during the  process our  legislators and  lead agencies                                                                    
     did  their   due  diligence   and  employed   the  most                                                                    
     stringent  and   scientifically  sound   water  quality                                                                    
     safeguards  to preserve  this fishery.   If  you don't,                                                                    
     and God  forbid there  is ever  an accident  that harms                                                                    
     it,  it will  be those  who had  the authority  to heed                                                                    
     this plea  who will have  to answer the  question "what                                                                    
     were they thinking?"                                                                                                       
                                                                                                                                
CHAIR SEATON reminded everyone that HB 134 is about water usage,                                                                
in the Bristol Bay area, not about the [Pebble] mine.                                                                           
                                                                                                                                
6:03:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX pointed out that  HB 134 has exemptions for                                                               
certain projects, development, and industry  in the area, such as                                                               
transportation,  energy, and  seafood  processing, and  solicited                                                               
the witness's opinion on these activities.                                                                                      
                                                                                                                                
MR.  OBERLATZ pointed  out that  he is  representing the  tourism                                                               
industry, as  a sustainable industry  in the Bristol  Bay region.                                                               
However, first and foremost clean  water is a priority, to ensure                                                               
the fishing industry,  and subsistence activities.   All of these                                                               
endeavors,  including  mining can  co-exist,  until  there is  an                                                               
accident;  then everything  will leave,  he opined.   If  certain                                                               
industries are exempt  perhaps they aren't as big of  a threat as                                                               
large scale mining development.                                                                                                 
                                                                                                                                
REPRESENTATIVE JOHNSON asked if/how  the tourists are transported                                                               
along the river.                                                                                                                
                                                                                                                                
MR.  OBERLATZ  responded that  aircraft  are  used to  bring  the                                                               
tourists into  the wilderness where   backpacking, river rafting,                                                               
and  other  activities  ensue, which  do  not  include  motorized                                                               
vehicles,  or river  boats.   The  air taxi  service is  crucial,                                                               
however.                                                                                                                        
                                                                                                                                
6:06:16 PM                                                                                                                    
                                                                                                                                
BETTY  WEIKEL stated  her  concern for  any  activity that  would                                                               
alter,  divert,  or  otherwise   compromise  the  watershed.    A                                                               
healthy,  non-toxic fish  population,  and a  healthy food  chain                                                               
needs to  be preserved.   She opined  that the  implementation of                                                               
this bill  will help to  support the  subsistence way of  life in                                                               
the area,  as well as  help to retain the  renewable, sustainable                                                               
resource for generations to come.                                                                                               
                                                                                                                                
CHAIR SEATON  said that  the bill  disallows converting  bogs, or                                                               
wet lands to  dry land, for other than  residential, domestic, or                                                               
municipal purposes.   That restriction,  he noted, could  make it                                                               
difficult to build  on land that required gravel fill.   He asked                                                               
if that would be of any concern.                                                                                                
                                                                                                                                
MS. WEIKEL stated  that if it restricted people  from building on                                                               
their own  property, it would  be a concern.   However, if  it is                                                               
activity  that effects  the watershed,  the  watershed should  be                                                               
protected.                                                                                                                      
                                                                                                                                
CHAIR SEATON explained that he is seeking concerns, and                                                                         
suggestions, from witnesses to consider what changes need to be                                                                 
made to the bill.                                                                                                               
                                                                                                                                
6:11:03 PM                                                                                                                    
                                                                                                                                
DAN SALMON, Member, Igiugig Village Council (IVC), stated                                                                       
opposition to HB 134, paraphrasing from a prepared statement,                                                                   
which read as follows [original punctuation provided]:                                                                          
                                                                                                                                
     I am here  to testify on behalf of IVC,  as the longest                                                                    
     tenured  community  administrator  manager  in  Bristol                                                                    
     Bay.   Respectfully,  IVC believes  that HB  134 is  an                                                                    
     extremely  poorly written  piece of  legislation, aimed                                                                    
     at  one company,  or industry,  rather than  a bill  to                                                                    
     address water quality  in the state of Alaska.   Why is                                                                    
     water quality any less important  in other parts of the                                                                    
     state,  such as  Fairbanks,  the  Yukon, or  Southeast,                                                                    
     than it  is here?   All support viable  salmon fishing.                                                                    
     Why are  some industries  and entities exempt  from the                                                                    
     proposed regulations.  Is it  justifiable to allow some                                                                    
     to  pollute but  others to  not?   We don't  need other                                                                    
     special  legislated areas;  Igiugig is  already flanked                                                                    
     by National  Parks and Preserves  on two sides,  with a                                                                    
     multitude  of  rules  and regulations  that  limit  our                                                                    
     economic, and subsistence,  opportunities.  We strongly                                                                    
     object to another layer of  laws, and regulations, that                                                                    
     limit our lives and increase our cost of living.                                                                           
                                                                                                                                
     HB 134  has the potential  to:  1) Limit,  or preclude,                                                                    
     commercial water withdrawals in  the Kvichak, and other                                                                    
     drainages.   2)  Would prohibit  private infrastructure                                                                    
     development that  would alter  or a stream  or wetland;                                                                    
     roads, docks,  river turbines, and home  development in                                                                    
     Igiugig  and  elsewhere.    3)  Impair  oil,  gas,  and                                                                    
     mineral development.   4) Severely limit  ANCSA (Alaska                                                                    
     Native Claims  Settlement Act) land selection  usage by                                                                    
     local Native corporations,  residents, Native allotment                                                                    
     owners, and the public, on private owned property.                                                                         
                                                                                                                                
     Currently  oil   and  gas   exceeds  $5.00   a  gallon,                                                                    
     electricity is  $.60 per kilowatt hour  for residential                                                                    
     and  $.71  for  commercial.    A  roundtrip  ticket  to                                                                    
     Anchorage, our service area 270  miles east, can exceed                                                                    
     $550 per  person.  One  council member here,  with four                                                                    
     children spends over $3,500  in transportation to visit                                                                    
     Anchorage, for one trip a year.                                                                                            
                                                                                                                                
     I  have   roughly  estimated  revenues,   from  various                                                                    
     sources,   to   our   community  residents   in   2007:                                                                    
     Traditional  commercial fishing  -  $125,000 gross  and                                                                    
     maybe $60,000 net;  20 years of tourism  - $200,000 per                                                                    
     community; two years of  mining exploration - $320,000;                                                                    
     state, federal, and borough resources  make up the bulk                                                                    
     of the remainder.   We have 33 people  on our community                                                                    
     payroll for  2007 so far.   We have 3 BB  (Bristol Bay)                                                                    
     drift permits  left in  our community;  2 in  my house,                                                                    
     and the  other in a village  council members ownership.                                                                    
     Our  economy is  struggling, and  we have  few options,                                                                    
     with   the   high  cost   of   living,   and  lack   of                                                                    
     infrastructure.                                                                                                            
                                                                                                                                
     IVC  is  officially  neutral  on  the  Pebble  Project,                                                                    
     reserving  judgment  until  we  have  seen  a  proposed                                                                    
     development permit.  In the  meantime, we will continue                                                                    
     to learn and  evaluate information as  it  comes to us,                                                                    
     from both sides of the table.   We reject HB 134 in its                                                                    
     entirety.                                                                                                                  
                                                                                                                                
6:15:54 PM                                                                                                                    
                                                                                                                                
SHAR (ph)  [Inaudible] stated  that her main  concern is  for the                                                               
water.  "Whatever  industry might come into the  area," she said,                                                               
"make sure  they (indisc.)  the Bristol  Bay watershed."   Having                                                               
moved to  the Bristol Bay  region, from  the Great Lakes  area of                                                               
Michigan, (indisc.)  she stated, "I  do not eat fish  (indisc.) I                                                               
don't  want  to  see  that  happen  here."    [Inaudible.]    She                                                               
expressed  concern for  diverting  the river,  using  a six  inch                                                               
pipe, at 1,000  gallons per minute, and how that  will effect the                                                               
watershed.    More  research  needs  to be  done  in  this  area.                                                               
[Inaudible.]                                                                                                                    
                                                                                                                                
6:19:17 PM                                                                                                                    
                                                                                                                                
STEVE  KAHN described  his subsistence  life  style, of  hunting,                                                               
fishing,  and  harvesting berries,  as  well  as  his work  as  a                                                               
commercial fish/crab  boat crew  member.  As  a user  of Alaska's                                                               
renewable resources,  he said, "First  of all, I support  HB 134,                                                               
and other protections of Alaskan  wildlife, salmon stocks, water,                                                               
and related habitat;  not just in this region  but throughout the                                                               
state."  He expressed opposition to  large scale mining.  An open                                                               
pit mine would  jeopardize water quality and  effect the habitat.                                                               
He upheld the importance of  the fishing industry, in the Bristol                                                               
Bay  area, as  a good  source of  renewable resource  jobs.   The                                                               
mining industry offers  jobs based on (indisc.), he  opined.  His                                                               
research  indicates  that DNR  has  never  rejected a  large-mine                                                               
permit, regardless  of concerns,  which illustrates the  need for                                                               
the legislature  to take  a leading  role in  protecting Alaska's                                                               
resources.                                                                                                                      
                                                                                                                                
6:22:44 PM                                                                                                                    
                                                                                                                                
MASSA GUMLICKPUK provided her testimony  on HB 134, in her Native                                                               
tongue, and said, "Somebody please, translate it for me."                                                                       
                                                                                                                                
UNIDENTIFIED  SPEAKER translated  for  Massa Gumlickpuk,  calling                                                               
out from the gallery:  "She supports HB 134."                                                                                   
                                                                                                                                
6:23:22 PM                                                                                                                    
                                                                                                                                
ANNE  CORAY related  her background  and that,  as a  subsistence                                                               
user, she is  grateful for the abundant salmon.   She highlighted                                                               
other   areas  in   the  Lower   48  that   have  suffered   from                                                               
environmental  transgressions  occurring   around  mine  industry                                                               
sites,   resulting  in   compromised  fish   populations/habitat:                                                               
Colorado,  New Mexico,  and Nevada.   She  said that  she doesn't                                                               
trust the  environmental impact statements  that are  supposed to                                                               
insure  no  harm  will  occur.     Neither  does  she  trust  the                                                               
scientists  hired  by  huge corporations,  possibly  working  for                                                               
Northern Dynasty.   She  pointed out the  620 violations  of Teck                                                               
Cominco at the Red Dog Mine.   These levels of violations, do not                                                               
insure a clean  environment.  Some people in the  area need jobs,                                                               
and  have gone  to  work  for Northern  Dynasty.    She said  she                                                               
believes in  jobs, if  they don't  threaten a way  of life.   She                                                               
said she  supports sustainable resource development,  not foreign                                                               
mega corporations.   The emphasized  the urgency of  passing this                                                               
type of legislation.                                                                                                            
                                                                                                                                
6:26:57 PM                                                                                                                    
                                                                                                                                
BRADLEY BOND  said he  is in  strong support of  the bill,  as it                                                               
will protect the animals and fish.                                                                                              
                                                                                                                                
6:27:35 PM                                                                                                                    
                                                                                                                                
BILL TREFON  SR., clarified that  he is representing his  home of                                                               
Nondalton.    Pledging   support  for  HB  134,   he  voiced  the                                                               
importance of  clean water to  a subsistence lifestyle.   This is                                                               
vital  to  the  residents,  and  the  recreational/sport  fishing                                                               
enthusiasts,   who  depend   on  these   resources.     He  urged                                                               
preservation of the land and water for future generations.                                                                      
                                                                                                                                
6:29:09 PM                                                                                                                    
                                                                                                                                
KIM WILLIAMS, Member, Tribal Council, testified in support of HB
134, paraphrasing from a prepared statement, which read as                                                                      
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     I  am a  45  year old  subsistence user  of  fish.   My                                                                    
     family including my late  grandparents used all species                                                                    
     of salmon  and I remember  fondly as a very  young girl                                                                    
     picking fish from the Nushagak  mud, getting stuck, and                                                                    
     falling as  I carried red salmon  up to the bank  to my                                                                    
     waiting Grandmother.  Today, it  is my six children who                                                                    
     participate  as subsistence  users to  pick fish  or to                                                                    
     wait  eagerly  with  their  grandparents  to  see  that                                                                    
     bright  silver  glimpse  of  a  tail  or  head  in  our                                                                    
     subsistence net on Kanakanak Beach.                                                                                        
                                                                                                                                
     Every  year  during May  or  early  June, at  Kanakanak                                                                    
     Beach in Dillingham,  you will see my 69  year old Dad,                                                                    
     William  Johnson  and  my husband,  slugging  thru  the                                                                    
     Nushagak  Mud   to  carry  the  lines   that  hold  our                                                                    
     subsistence net.   My father  even remembers as  a very                                                                    
     young boy fishing on sailboats  with his Dad to harvest                                                                    
     wild Alaska Bristol  Bay salmon.  In our  family it was                                                                    
     my 3  brothers who  actively commercial fished  with my                                                                    
     Dad at a very  young age.  It was only  in 1973 that my                                                                    
     late sister  Evelyn and  I were required  to be  on the                                                                    
     boat because  our family could  have more nets  to fish                                                                    
     in the  water.  From  that moment  on, my sister  and I                                                                    
     participated  in  this  commercial  fishery  like  most                                                                    
     Bristol Bay  kids.   If my  Dad gave  the call  that he                                                                    
     needed another fish picker on  the boat, I would gladly                                                                    
     rise  to the  occasion.   I don't  think the  call will                                                                    
     come anytime soon,  since he taught my 22  year old son                                                                    
     to commercial  fish and  he is teaching  my 7  year old                                                                    
     triplets  to participate  in this  fishery.   It is  an                                                                    
     Alaskan legacy that we are  blessed to participate in a                                                                    
     fishery like no other in the world.                                                                                        
                                                                                                                                
     This fishing income supported  my college education and                                                                    
     it's  that degree  which  allowed me  to  work for  the                                                                    
     University  of  Alaska  Bristol   Bay  Campus  to  host                                                                    
     several  land  and  renewable resource  conferences  in                                                                    
     Dillingham  (2004) and  Newhalen  (2005)  in this  very                                                                    
     facility.   I also developed classes  around Mining and                                                                    
     Fish -  Can they  co-exist?   Which brought  experts in                                                                    
     both fields to students to  learn more about the mining                                                                    
     process and what information do  we have about the fish                                                                    
     populations   that   are   unique  to   Bristol   Bay's                                                                    
     watershed.    One  of  the  most  important  lessons  I                                                                    
     learned  as a  developer of  classes and  an instructor                                                                    
     during  this period,  is even  though people  will tell                                                                    
     you politics  and money are  not involved -  that isn't                                                                    
     the  case.   Many people  know that  I will  not ramrod                                                                    
     into  someone's position  even  when  a mining  company                                                                    
     places a  call to the  Governor who then places  a call                                                                    
     [to] the President of the  University and the questions                                                                    
     come filtering down.                                                                                                       
                                                                                                                                
     I  don't know  the  history of  legislation around  the                                                                    
     creation of the Bristol  Bay Fisheries Reserve in 1972.                                                                    
     I support House Bill 134 for  the simple reason - if we                                                                    
     want  jobs  through  development  of  our  nonrenewable                                                                    
     resources it  shouldn't be at  the expense of  the very                                                                    
     unique fish  populations that  inhabit the  Bristol Bay                                                                    
     streams and rivers.  It  shouldn't be at the expense of                                                                    
     our  fish  that  rely  on very  complex  ground  water,                                                                    
     aquifer  systems,  and  other hydrologic  regimes  that                                                                    
     support their  life history.   Fish  come first.   They                                                                    
     have sustained  many generations  of Alaskans  and will                                                                    
     continue into the future by the passage of HB 134.                                                                         
                                                                                                                                
CHAIR SEATON  requested that when  she speaks to  other residents                                                               
about testifying  on the bill,  that she solicit  their opinions,                                                               
and  concerns,  regarding the  aspects  of  HB 134  dealing  with                                                               
conversion  to  dry  land,  or  building  gravel  pads,  and  the                                                               
exemptions of  the oil and  gas industry;  does it fit  with what                                                               
people would like to accomplish in the area.                                                                                    
                                                                                                                                
6:33:17 PM                                                                                                                    
                                                                                                                                
NATALIA BLUNKA said  she supports HB 134, to  protect the quality                                                               
of the water.  She related a  story of using the clean water, and                                                               
expressed   concern  that   one   day  it   might  be   polluted.                                                               
Additionally, she  has 19 grand,  and 3 great grand  children who                                                               
she is teaching  about respecting the land and water,  as she was                                                               
taught by her elders.                                                                                                           
                                                                                                                                
6:34:28 PM                                                                                                                    
                                                                                                                                
WASSILLIE CHUNAK SR., [Inaudible.]                                                                                              
                                                                                                                                
6:34:49 PM                                                                                                                    
                                                                                                                                
TIMOTHY  WONHOLA  SR., stated  support  for  the effort  that  is                                                               
uniting the people to protect the  watershed.  He said, "It makes                                                               
me feel so happy that someone  is listening out there."  Having a                                                               
clean water act is important to  the cultural user.  He described                                                               
the two large  watersheds, that are the primary  support, for the                                                               
local fisheries.   He expressed  concern for the decline  of fish                                                               
stocks in the north fork of  the [Koktuli] River; head waters for                                                               
the Nushagak  River.   His family has  observed fewer  fish every                                                               
year,  because  the quality  of  the  water  suffers.   The  fish                                                               
decline pattern  began, he reported  in the last few  years, with                                                               
the water  monitoring that has  been taking place.   He expressed                                                               
fear  for the  survival of  his  culture, and  his fellow  Native                                                               
Alaskans.  If the water is  effected by new development, then the                                                               
land (indisc.),  and he  said, "That  is sad."   With all  of the                                                               
user groups  involved, he  called for a  study of  the fish/water                                                               
conditions of the [Koktuli] River.                                                                                              
                                                                                                                                
6:39:30 PM                                                                                                                    
                                                                                                                                
[Inaudible] said, "I support 134."                                                                                              
                                                                                                                                
6:39:49 PM                                                                                                                    
                                                                                                                                
[Inaudible] (Indisc.)  and discussed  the importance of  water to                                                               
the subsistence lifestyle  that has been an  ongoing activity, in                                                               
this area,  for hundreds of years.   "I support the  HB 134," she                                                               
said, "Because I  am a subsistence user (indisc.)."   We need you                                                               
to help  us keep  our waters clean  and continue  our subsistence                                                               
way of life, she implored the committee.                                                                                        
                                                                                                                                
6:41:11 PM                                                                                                                    
                                                                                                                                
KATHLEEN WONHOLA  said she is  a strong  supporter of HB  134, in                                                               
its  entirety.    It  will  help  to  protect  the  fishery,  and                                                               
(indisc.).                                                                                                                      
                                                                                                                                
6:41:55 PM                                                                                                                    
                                                                                                                                
SALLY  GUMLICKPUK said  that she  is  a subsistence  user, and  a                                                               
"strong" supporter of  HB 134.  Growing up  "on" subsistence, she                                                               
recalled the  first fish she  ever caught, and related  the story                                                               
to  illustrate  how the  culture  is  passed from  generation  to                                                               
generation, with  pride.  She  expressed the need to  ensure that                                                               
the resources are available for  future generations.  Some people                                                               
may make  money at the Pebble  Mine, but what will  everyone else                                                               
do; they  will still  rely on  having subsistence  resources, she                                                               
opined.                                                                                                                         
                                                                                                                                
6:44:23 PM                                                                                                                    
                                                                                                                                
ALEXIE GUST SR., [Inaudible.]                                                                                                   
                                                                                                                                
6:44:41 PM                                                                                                                    
                                                                                                                                
[Inaudible],  Union  President,  observed  that  everyone  is  in                                                               
accord  regarding  the  clean   water  issue;  without  argument.                                                               
[Inaudible.]  He pointed out  that everyone makes their money off                                                               
the land, and  resources, as well as subsisting.   Mining, by its                                                               
nature,  is  a polluting  industry,  requiring  large amounts  of                                                               
toxic  substances to  be contained,  in  a changing  environment,                                                               
which,  he  said,  "is  a  tall  order  to  ever  do  that  ...."                                                               
[Inaudible.]   Oil and gas  development is not a  clean industry,                                                               
either, as  evidenced by the  history of drilling in  Cook Inlet.                                                               
Oil  and  gas  developers  have improved  their  techniques,  and                                                               
proven the  ability to operate more  cleanly.  With the  need for                                                               
jobs in  the area, he  pondered what the resident's  choice would                                                               
be  between a  large  scale  mining operation,  with  all of  the                                                               
potential possibilities  and problems clearly set  forth, vs. oil                                                               
and gas development.                                                                                                            
                                                                                                                                
CHAIR  SEATON  pointed  out  that  part of  HB  134  includes  an                                                               
exemption for  residential, but not  commercial use.   Only eight                                                               
of the current area lodges hold  water rights.  He stated that an                                                               
outstanding  question   exists  on  how  this   will  effect  the                                                               
commercial lodges  without water rights,  and future lodges.   He                                                               
asked  the witness  if  he has  considered  this potential  water                                                               
usage conflict.                                                                                                                 
                                                                                                                                
WITNESS stated  that he finds  that language,  in the bill  to be                                                               
"clumsy."  [Inaudible.]                                                                                                         
                                                                                                                                
CHAIR SEATON  interjected, "But ...  what we're talking  about is                                                               
the bill that we have."                                                                                                         
                                                                                                                                
WITNESS [Inaudible response.]                                                                                                   
                                                                                                                                
CHAIR SEATON  inquired whether  there should  be an  exemption in                                                               
the bill for small scale commercial use.                                                                                        
                                                                                                                                
WITNESS  responded  (indisc.)  a  written vs.  a  reactive  thing                                                               
(indisc.) makes it a little bit more dynamic (indisc.).                                                                         
                                                                                                                                
6:50:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WILSON  asked  for  a raise  of  hands  from  the                                                               
gallery  to  identify  the commercial  fishermen,  and  a  second                                                               
raising of hands to signify  subsistence users only.  She assumed                                                               
that the remainder of the group  are in someway employed, and may                                                               
also practice subsistence use.                                                                                                  
                                                                                                                                
[A number of inaudible,  unidentified, overlapping responses from                                                               
the gallery arose.]                                                                                                             
                                                                                                                                
6:52:17 PM                                                                                                                    
                                                                                                                                
MICHELLE HOPE  RAVENMOON said that  Bristol Bay is her  home, and                                                               
she supports HB  134.  The reason for her  support, she said, "is                                                               
because it  will protect the  waters and  the home that  I love."                                                               
Salmon is  her only  food source,  and she  relies on  a constant                                                               
source of  fish throughout the  year.  [Inaudible.]   Subsistence                                                               
users  are allowed  approximately 400  pounds of  meat per  year,                                                               
and,  as she  understands the  bill, it  will not  impose on  the                                                               
harvesting  of these  traditional quotas.   [Inaudible.]   Salmon                                                               
make up about  seven per cent of the annual  subsistence food, in                                                               
the Iliamna area, she maintained.   [Inaudible.]  Many tests have                                                               
been conducted  by the state (indisc.).   She stated that  she is                                                               
not against mining,  or economic development.  Mine,  or no mine,                                                               
clean water is essential, she  stressed.  Because it is difficult                                                               
for people to take time from  work, and travel to these meetings,                                                               
she suggested  that technology be  employed to make it  easier to                                                               
testify.                                                                                                                        
                                                                                                                                
6:56:13 PM                                                                                                                    
                                                                                                                                
CHAIR  SEATON noted  that the  state teleconferencing  system has                                                               
been  in service  during each  hearing.   Also,  there have  been                                                               
three  hearings  in Juneau,  on  HB  134,  but  the will  of  the                                                               
committee was  to travel to  the region for  additional, personal                                                               
feedback.   He  stressed  that  this effort  is  not intended  to                                                               
circumvent  anyone  calling  via the  teleconference  system,  or                                                               
sending  written materials  and opinions  to be  included in  the                                                               
record.                                                                                                                         
                                                                                                                                
6:57:14 PM                                                                                                                    
                                                                                                                                
KEITH JENSEN,  President, Pedro Bay Village  Council, pointed out                                                               
that Pedro  Bay is situated  between Cook Inlet and  the proposed                                                               
Pebble  Mine.   The  main access  road, to  the  mine, would  cut                                                               
straight through Pedro  Bay; crossing a variety of  terrain.  The                                                               
residents are  concerned about  what effects  this would  have on                                                               
the area,  including drainage  from the road,  and the  health of                                                               
the surrounding aquifers, given the water usage of the mine.                                                                    
                                                                                                                                
CHAIR SEATON asked  if there are concerns regarding  the dry land                                                               
restrictions.                                                                                                                   
                                                                                                                                
MR. JENSEN  stated that Pedro Bay  sits on bedrock, and  there is                                                               
minimal need to create dry land.                                                                                                
                                                                                                                                
6:58:55 PM                                                                                                                    
                                                                                                                                
MARVIN BALLUTA  provided his introduction, and  statement, in his                                                               
native tongue, then restated his support for HB 134 in English.                                                                 
                                                                                                                                
6:59:30 PM                                                                                                                    
                                                                                                                                
SERGIE  CHUKWAK suggested  amending page  2, line  19 to  include                                                               
Native (indisc.).   He  said, "They want  to develop  their land,                                                               
let  them develop  their land."   If  that provides  some revenue                                                               
then  that could  be  beneficial.   Stating that  he  has been  a                                                               
commercial fisherman  for 30 years,  he said, "I say  give salmon                                                               
fishing a break, and let us develop our land if we want."                                                                       
                                                                                                                                
CHAIR  SEATON  reiterated  the  helpfulness  of  these  types  of                                                               
specific suggestions.   He encouraged  everyone to obtain  a copy                                                               
of the bill, to aid them in formulating their input.                                                                            
                                                                                                                                
MR. CHUKWAK  pointed out to the  gallery that this is  a draft of                                                               
the bill, and encouraged everyone  to inform the committee of the                                                               
local needs, and desires, to properly craft the legislation.                                                                    
                                                                                                                                
7:01:37 PM                                                                                                                    
                                                                                                                                
[Inaudible] addressed the committee  in her Native language, then                                                               
stated, "I support HB 134."                                                                                                     
                                                                                                                                
7:02:26 PM                                                                                                                    
                                                                                                                                
[Inaudible],  President,  Nondalton  Village  Council,  said,  "I                                                               
support the HB 134."                                                                                                            
                                                                                                                                
The committee took an at-ease from 7:03:08 PM to 7:20:32 PM.                                                                
                                                                                                                                
7:20:59 PM                                                                                                                    
                                                                                                                                
CHAIR  SEATON discussed  the versions  of HB  134.   He explained                                                               
that  Version  M  is  the  working  document,  not  the  official                                                               
document  available on  BASIS.    However, it  can  be viewed  on                                                               
Representative Edgmon's  website, and  copies are  available from                                                               
the Legislative Information Offices.                                                                                            
                                                                                                                                
7:22:47 PM                                                                                                                    
                                                                                                                                
JAMES LAMONT  expressed concern for  the problems that  this bill                                                               
will create  for the local people.   He opined that  they will be                                                               
prohibited  from building  houses, or  roads, and  from accessing                                                               
various  traditional use  areas.   A refuge  can not  be changed,                                                               
once it  is effected, and is  governed by a strict  set of rules,                                                               
he maintained.                                                                                                                  
                                                                                                                                
REPRESENTATIVE EDGMON pointed  out that HB 134 does  not create a                                                               
refuge.  He then asked if Mr.  Lamont would support HB 134 if the                                                               
title  simply read:   "The  waters of  the Bristol  Bay watershed                                                               
should  be   used  first  for   public  water  supply,   and  for                                                               
subsistence use,  and be  given any priority  over any  other ...                                                               
large scale industrial use."                                                                                                    
                                                                                                                                
MR. LAMONT maintained  his opposition to HB  134, reiterated that                                                               
a refuge  is restrictive, and said  he needs to learn  more about                                                               
the situation.                                                                                                                  
                                                                                                                                
7:25:59 PM                                                                                                                    
                                                                                                                                
THOMAS  TILDEN,   Member,  Nunumta  [Aulukestai],   recalled  the                                                               
national  recognition  he received  in  New  York City,  when  he                                                               
attended  a late  night  talk show.   Stating  that  he was  from                                                               
Dillingham, the host  recognized the area as  the "salmon capitol                                                               
of the world."  "That is who we  are," he said, "we are people of                                                               
the salmon; we live  off of it, we make our life off  of it."  HB
134  is  necessary  to  ensure  clean  water  and  the  continued                                                               
salmon/lifestyle, he stressed, and said  "If we don't protect the                                                               
salmon, we  are nothing.  If  you wanted to wipe  out people, ...                                                               
wipe out the  culture, then don't pass HB 134."   The protections                                                               
in the bill are important, and  he suggested amending the bill to                                                               
protect  other river  drainage areas,  in  the Alaska  Peninsula.                                                               
Also, strengthen  the bill,  he said, by  amending it  to include                                                               
moving the Office of Habitat  Management and Permitting, from DNR                                                               
to ADF&G.  Amend  it or not, but "by all  means, pass this bill,"                                                               
he exclaimed.                                                                                                                   
                                                                                                                                
7:30:51 PM                                                                                                                    
                                                                                                                                
BRIAN  KRAFT,  Board   Member,  Renewable  Resources  Coalition;,                                                               
Remote   Fishing  Lodge   Owner;,  Representative,   Bristol  Bay                                                               
Alliance;, informed the  committee that he rough  necked for four                                                               
years, with Doyon,  Limited, and has also been  employed by Arco.                                                               
This has  provided him with a  good understanding of the  oil and                                                               
gas  industry,  but  he  is  not  as  familiar  with  the  mining                                                               
industry.   He agreed with the  sponsor's intent for HB  134, and                                                               
explained  the vital  importance for  protecting these  headwater                                                               
areas.   He suggested amending [page  2], line 11, to  insert "an                                                               
amount that is large enough  that has measurable adverse effect",                                                               
to allow for housing development.                                                                                               
                                                                                                                                
7:34:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EDGMON   paraphrased  from  the   statute  "Civil                                                               
Penalties for Discharge of Oil" [AS 46.03.758], which reads:                                                                    
                                                                                                                                
     (1) recent information discloses  that the discharge of                                                                    
     oil may  cause significant  short and  long-term damage                                                                    
     to the  state's environment; even minute  quantities of                                                                    
     oil  released   to  the  environment  may   cause  high                                                                    
     mortalities   among  larval   and  juvenile   forms  of                                                                    
     important   commercial  species,   may  affect   salmon                                                                    
     migration  patterns,  and  may  otherwise  degrade  and                                                                    
     diminish the renewable resources of the state;                                                                             
                                                                                                                                
REPRESENTATIVE EDGMON  stated that  this statute governs  oil and                                                               
gas  entities, but  not the  mining  industry, and  asked if  Mr.                                                               
Kraft would support inclusion of  the mining industry, under such                                                               
statute.                                                                                                                        
                                                                                                                                
MR. KRAFT opined  that the mining industry should be  held to the                                                               
same standards, and scrutiny as the oil industry.                                                                               
                                                                                                                                
7:36:03 PM                                                                                                                    
                                                                                                                                
GEORGE HORNBERGER  informed the committee  that he's a  pilot and                                                               
works for Northern Dynasty.  He  stated that HB 134 "is all about                                                               
Pebble Mine  and nothing else."   Restrictions on  water embodied                                                               
in  HB 134  are unworkable,  and will  effectively eliminate  the                                                               
entire Pebble  Mine process.   He  suggested that  the permitting                                                               
process for the  mine, be allowed to run it's  coarse, and if the                                                               
requirements can not  be satisfied it will become  evident.  This                                                               
legislation doesn't help anyone, he opined.                                                                                     
                                                                                                                                
7:37:52 PM                                                                                                                    
                                                                                                                                
MICHAEL  BORLESKE   opined  that   the  legislation   is  written                                                               
backwards,  as evidenced  by the  need to  list exceptions.   The                                                               
existing  laws  can be  made  better,  and enforced,  which  will                                                               
provide the  necessary protection to  the area.  Also,  he hasn't                                                               
seen any information regarding how HB 134 will be funded.                                                                       
                                                                                                                                
7:40:20 PM                                                                                                                    
                                                                                                                                
[Inaudible]  President, Iliamna  Native (indisc.),  characterized                                                               
HB  134 as  a  distraction  from the  real  issue  of the  future                                                               
economic development of  the Iliamna Lake region.   She suggested                                                               
focusing   on  the   things  that   everyone  agrees   cannot  be                                                               
compromised:   the environment, (indisc.),  an economic  means to                                                               
provide  for  families,  and  (indisc.).    If  this  legislation                                                               
passes,  she opined,  it  will  close the  door  on all  economic                                                               
development in  the region.  "To  put it another way,"  she said,                                                               
"To sacrifice  our fish will  kill our culture, but  to eliminate                                                               
the ability to  develop their region will kill our  people."  She                                                               
requested a  deeper review of  the communities, and  their desire                                                               
to build a self-sustaining region.                                                                                              
                                                                                                                                
7:43:11 PM                                                                                                                    
                                                                                                                                
SEAN  MAGEE,  Vice  President   of  Public  Affairs,  Partnership                                                               
Spokesperson,   Northern  Dynasty   Mines,  paraphrased   from  a                                                               
prepared statement,  which read as follows  [original punctuation                                                               
provided]:                                                                                                                      
     I'm  Vice  President  of Public  Affairs  for  Northern                                                                    
     Dynasty  Mines, and  I'm here  today on  behalf of  the                                                                    
     Pebble Partnership.                                                                                                        
                                                                                                                                
     I'm going to  return to the Pebble  Partnership in just                                                                    
     a moment,  but first I  intend to make some  very clear                                                                    
     and direct  comments about  the legislation  before you                                                                    
     today - House Bill 134.                                                                                                    
                                                                                                                                
     As you  may recall, our  company did not  appear before                                                                    
     the House Resources committee in  February of this year                                                                    
     when hearings on  HB134 were first held in  Juneau.  At                                                                    
     that time, it was our  view that this legislation would                                                                    
     so  obviously   alienate  our   right  to   pursue  the                                                                    
     responsible  development of  the Pebble  prospect, that                                                                    
     it scarcely justified our participation.                                                                                   
                                                                                                                                
     We took  the decision  to stand  aside and  let broader                                                                    
     interests  -  including   community  and  institutional                                                                    
     leaders from  Bristol Bay - comment  on the far-ranging                                                                    
     negative impacts that HB134 would  have on this region,                                                                    
     and  the dangerous  precedent it  would create  for the                                                                    
     State of Alaska.                                                                                                           
                                                                                                                                
     Our view of the legislation  has not changed.  It would                                                                    
     clearly   foreclose    any   opportunity    to   pursue                                                                    
     responsible  development of  one  of  the world's  most                                                                    
     important mineral resources.                                                                                               
                                                                                                                                
     It would  stifle investment  and development  across 22                                                                    
     million  acres  of  a region  that  clearly  needs  new                                                                    
     economic  opportunities.    Affected  industries  would                                                                    
     include  oil  and  gas,  geothermal  and  other  energy                                                                    
     development, tourism, fish  processing, light industry,                                                                    
     manufacturing, and of course mining.                                                                                       
                                                                                                                                
     It  would obstruct  new infrastructure  development and                                                                    
     challenge   existing  uses   of  land   and  resources,                                                                    
     including  subsistence   activities.    And   it  would                                                                    
     provide competitive  advantage -  a virtual  monopoly -                                                                    
     to existing  businesses that would  not have  to comply                                                                    
     with its provisions.                                                                                                       
                                                                                                                                
     We've  heard  rumors  that  the  legislation  could  be                                                                    
     amended such  that its provisions  would apply  to some                                                                    
     industries and  not to  others.   And we  simply cannot                                                                    
     understand how  this approach - one  that doesn't focus                                                                    
     on environmental  impacts but on  industrial practices,                                                                    
     and  then allows  those industrial  practices for  some                                                                    
     and not for  others - squares with  good public policy.                                                                    
     Clearly it does not.                                                                                                       
                                                                                                                                
     Even worse, we  fear that this flawed  public policy is                                                                    
     being  advanced  for  a  singular  purpose  -  to  stop                                                                    
     Pebble.                                                                                                                    
                                                                                                                                
     HB134  is  not an  honest  effort  to ensure  that  the                                                                    
     Pebble Project  is developed  in a  responsible manner,                                                                    
     to  the  highest   possible  environmental  and  social                                                                    
     standards - which is our interest  as a company.  It is                                                                    
     an attempt  to stop  development under  any conditions.                                                                    
     And in doing  so, it would have  grave and far-reaching                                                                    
     consequences for the people  and communities of Bristol                                                                    
     Bay.  The  collateral damage would be  huge, and should                                                                    
     be  understood and  recognized by  even the  staunchest                                                                    
     opponents of our project.                                                                                                  
                                                                                                                                
     So why has our company  stepped forward to deliver this                                                                    
     message today when  we chose not to do  so in February?                                                                    
     The answer  is there  has been  a meaningful  change in                                                                    
     the  manner  in  which  the  Pebble  Project  is  being                                                                    
     advanced.                                                                                                                  
                                                                                                                                
     Last  month,  Northern  Dynasty entered  into  a  50-50                                                                    
     joint venture partnership with Anglo  American - one of                                                                    
     the   world's  largest   and   most  respected   mining                                                                    
     companies.                                                                                                                 
                                                                                                                                
     The Pebble  Partnership is still being  formalized, and                                                                    
     the  Alaska-based management  team  that  will lead  it                                                                    
     into the future is not yet in place.                                                                                       
                                                                                                                                
     But  as  the  committees  of the  Legislature  and  the                                                                    
     communities of  Bristol Bay come together  this week to                                                                    
     discuss the  type of economic development  they want in                                                                    
     this region, we believe it's  important that all of you                                                                    
     understand the  principles and  values that  will guide                                                                    
     the Pebble Partnership in future.                                                                                          
                                                                                                                                
     You'll hear  a lot more  about these principles  in the                                                                    
     weeks and months ahead.   They describe the values that                                                                    
     will  guide  our efforts  as  we  seek to  develop  the                                                                    
     Pebble Project.                                                                                                            
                                                                                                                                
     Pebble  is  for  people  -   Pebble  must  benefit  all                                                                    
     Alaskans.                                                                                                                  
                                                                                                                                
     Pebble must  co-exist with  healthy fish,  wildlife and                                                                    
     other values natural resources.                                                                                            
                                                                                                                                
     Pebble must  apply the world's  best and  most advanced                                                                    
     science                                                                                                                    
                                                                                                                                
     Pebble must help build sustainable communities.                                                                            
                                                                                                                                
     At Pebble, we must listen before we act.                                                                                   
                                                                                                                                
7:47:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EDGMON  expressed thanks  to Northern  Dynasty for                                                               
hosting the  committee members,  while in Iliamna.   He  asked if                                                               
the Pebble Partnership  is opposed to having  higher standards of                                                               
protection placed  on the  Bristol Bay  watershed, and  does that                                                               
constitute an  implicit statement  that the partnership  is going                                                               
to damage  water that  otherwise would  not be  damaged.   If the                                                               
partnership wants  to support  a no  net loss  of fish,  it would                                                               
support this  bill, but it  can't support the bill  because there                                                               
is  going to  be damage  to the  water.   He asked  if this  is a                                                               
correct summation of the partnership's stance.                                                                                  
                                                                                                                                
MR.  MCGEE disagreed  and said  that HB  134 forbids  the use  of                                                               
water; specifically  for industrial use.   Water quality standard                                                               
statutes, already  exist, he  pointed out,  and this  bill merely                                                               
restricts  water  usage  for  certain  industrial  purposes;  the                                                               
environmental impact  of that  use is not  addressed.   He opined                                                               
that the  partnership can  use the  water resources  and maintain                                                               
salmon  stocks.   However,  the legislation  forbids  the use  of                                                               
water altogether.                                                                                                               
                                                                                                                                
7:49:52 PM                                                                                                                    
                                                                                                                                
CHAIR SEATON,  for clarity,  reviewed what  various organizations                                                               
have contributed to the committees  visit.  Additionally, he said                                                               
that the legislature is fully  compensating members for committee                                                               
attendance.                                                                                                                     
                                                                                                                                
7:50:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN asked  if Northern  Dynasty anticipates  a                                                               
similar partnership relation  to the communities, as  the Red Dog                                                               
Mine has established in Kotzebue.                                                                                               
                                                                                                                                
MR. MCGEE  stated that Northern  Dynasty is currently  working in                                                               
partnership  with the  local  communities  and people;  including                                                               
village corporations.   He acknowledged  the need to do  more and                                                               
stated  that it  is  part  of the  company's  commitment, to  the                                                               
region, as the project moves foreword.                                                                                          
                                                                                                                                
7:53:16 PM                                                                                                                    
                                                                                                                                
DR. CAROL  ANN WOODY, Owner,  Fisheries Research  and Consulting,                                                               
stated that she has worked  in the region since 1991; researching                                                               
sockeye  salmon for  the University  of Washington.   During  the                                                               
last ten  years, she  has operated  a counting  tower on  the New                                                               
Halen  River   to  provide   escapement  information   to  ADF&G.                                                               
Additionally, she has worked on  research projects with the Parks                                                               
Service, contributing  to research publications.   She provided a                                                               
scientific  paper  of  a  technical review  of  copper,  for  the                                                               
benefit of  the committee.   Recent  research indicates  how even                                                               
very low levels of copper can  harm salmon.  The levels indicated                                                               
are  much  lower  than  the  limit specified  in  state  law,  as                                                               
criterion for protection of aquatic  species.  Toxicity tests are                                                               
lacking  for  most  Alaskan  species,   all  of  which  are  used                                                               
(indisc.).    The  DEC  model is  used  to  calculate  acceptable                                                               
pollution levels  for copper, but  it does not take  into account                                                               
the  myriad of  (indisc.), or  its (indisc.)  effects with  other                                                               
pollutants.                                                                                                                     
                                                                                                                                
7:56:32 PM                                                                                                                    
                                                                                                                                
CHIP  [CHARLES]   EMBRETSON  suggested  that   water  use/quality                                                               
concerns be addressed at the  local, borough level of government.                                                               
He opined that  it would be more efficiently handled,  as a water                                                               
and  air  pollution issue,  by  the  incorporated borough,  as  a                                                               
service area.   The local government has not  discussed this, and                                                               
he noted that this was the first he had heard of HB 134.                                                                        
                                                                                                                                
MIKE  TREFON questioned,  and took  exception, to  having a  time                                                               
limit placed on the testimony for such an important issue.                                                                      
                                                                                                                                
CHAIR SEATON reiterated  what the hearing schedule  has been, and                                                               
is  currently,  for  the  bill;   in  order  to  obtain  as  much                                                               
testimony, and  information, as possible.   Written  testimony is                                                               
also effective and appreciated, he encouraged.                                                                                  
                                                                                                                                
8:00:47 PM                                                                                                                    
                                                                                                                                
[Inaudible] said he  is all for Northern Dynasty  putting kids to                                                               
work.   You  can't  live  on subsistence  anymore,  he said,  and                                                               
commented on the lack of wildlife in the area.                                                                                  
                                                                                                                                
The committee  took an at-ease from  8:08:56 PM to 8:11:04  PM in                                                           
order to prepare for the following presentations.                                                                               
                                                                                                                                
8:11:09 PM                                                                                                                    
                                                                                                                                
The committee  was shown  a video  presentation, produced  by the                                                               
Iliamna  Development Corporation,  regarding Iliamna  in relation                                                               
to the Pebble Mine.                                                                                                             
                                                                                                                                
8:22:04 PM                                                                                                                    
                                                                                                                                
[Inaudible]  said, "What  it comes  down  to is,  it's about  the                                                               
people.                                                                                                                         
                                                                                                                                
8:22:50 PM                                                                                                                    
                                                                                                                                
CHAIR SEATON  stressed the continued  opportunities that  will be                                                               
available for public testimony on  HB 134, and urged that written                                                               
comments may also be submitted.                                                                                                 
                                                                                                                                
The committee took an at-ease 8:24:22 PM to 8:26:19 PM.                                                                     
                                                                                                                                
8:26:47 PM                                                                                                                    
                                                                                                                                
ED  FOGELS,  Acting  Director, Office  of  Project  Management  &                                                               
Permitting, provided a 36 slide  overview titled "The Process and                                                               
Requirements  for  Large  Mine Permit  Applications  in  Alaska."                                                               
There is no  single mine permit that is  obtained, as illustrated                                                               
by the third  slide listing 28 permits,  and authorizations, that                                                               
must be acquired  from various state or federal  agencies.  Slide                                                               
four established the 12 year  timeline for a standard large-scale                                                               
mine project  to begin  operation; the Pebble  Project is  in the                                                               
early  stages.   He  then emphasized  that  the state  government                                                               
isn't really  in the  "driver's seat" with  the process,  as that                                                               
seat  is occupied  by the  federal  government.   To satisfy  the                                                               
National  Environmental  Policy   Act  (NEPA),  an  Environmental                                                               
Impact Statement  (EIS) is  required.  A  Lead Federal  Agency is                                                               
designated,  which becomes  the  "driver," and  the process  then                                                               
begins, following  a submittal of  the full  application package,                                                               
which, with  Pebble, is still a  couple of years out,  he opined.                                                               
Three steps  follow the submission  of the application:   Scoping                                                               
out the  project and incorporating  public feedback  to delineate                                                               
issues/concerns,  and receive  public comments;  Drafting of  the                                                               
EIS, which  is submitted for  public comment; and the  Final EIS,                                                               
with another  public comment period.   He reviewed the  Pogo Mine                                                               
as a typical mine process, although  on a much smaller scale than                                                               
what the Pebble  Mine would represent.  He  emphasized the effort                                                               
for open  communication including:  pre-application  meetings and                                                               
outreach, the EIS process, tribal  consultation for government to                                                               
government  communications,  and   open  communications  via  the                                                               
internet web site, and public meetings.                                                                                         
                                                                                                                                
MR. FOGELS then turned to  mining, and reviewed the actual mining                                                               
process that  begins with  the removal of  the topsoil,  and ends                                                               
with the delivery of product, or  tailings.  He provided a series                                                               
of slides  to illustrate  the effort  that goes  into determining                                                               
what the  water quality will  be in  the specific aspects  of the                                                               
project.   It  is essential  for the  agencies involved,  and the                                                               
companies,  to   understand  the  geochemistry,  as   it  applies                                                               
directly to the mine operations, he offered.                                                                                    
                                                                                                                                
8:35:43 PM                                                                                                                    
                                                                                                                                
MR. FOGELS  moved on to  a partial  list of the  state regulatory                                                               
requirements,  including:  waste  disposal  permit  and  bonding,                                                               
reclamation  plan  approval,  dam  safety  certification,  sewage                                                               
treatment system approval, air quality  permits, fish habitat and                                                               
fishway  permits,  water rights,  right  of  way/access, plan  of                                                               
operations  approval,  cultural resource  protection,  monitoring                                                               
plan, and coastal zone consistency  determination.  These permits                                                               
and approvals are  received via DNR, DEC, or DOT.   He maintained                                                               
that  the  mine  operators  are   financially  bonded  to  ensure                                                               
adherence  to  the  standards, and  provide  reclamation.    This                                                               
reclamation  can  be  successful with  the  appropriate  science,                                                               
engineering,  and adequate  bonding.   He  explained the  bonding                                                               
process,  and  provided  a  slide to  indicate  the  bond  levels                                                               
currently held on existing mines in Alaska.                                                                                     
                                                                                                                                
8:40:08 PM                                                                                                                    
                                                                                                                                
MR.  FOGELS  addressed  the  concern  for  the  safety  of  dams,                                                               
explaining the  strict standards  to which  they are  subject for                                                               
certification  by  DNR.   He  reviewed  the previously  mentioned                                                               
regulatory requirements,  and attendant  state agencies  that are                                                               
involved   for  continued   monitoring  and   review  of   permit                                                               
standards.  He  also reviewed the state  agencies that constitute                                                               
a large  mine permitting team:   DNR, DEC, ADF&G,  DOT&PF, DCCED,                                                               
and  DOL.   Additional  slides provided  the counterpart  federal                                                               
agencies and federal regulatory requirements.                                                                                   
                                                                                                                                
8:44:23 PM                                                                                                                    
                                                                                                                                
MR.  FOGELS explained  what  work is  currently  being done  with                                                               
[Northern Dynasty] ensuring that the  Pebble project is on track:                                                               
ensuring that the Company is  collecting the right baseline data;                                                               
understanding  what   the  issues  are  as   early  as  possible;                                                               
coordinating   public   notices,   hearings,   public   comments;                                                               
designing  for  closure;  technical  reviews of  mine  plans  and                                                               
environmental   data;   ensuring  appropriate   monitoring;   and                                                               
determination   and   maintenance    of   appropriate   financial                                                               
assurances.                                                                                                                     
                                                                                                                                
8:47:04 PM                                                                                                                    
                                                                                                                                
CHAIR SEATON finalized  the meeting, and provided  a timeline for                                                               
availability of the current information.                                                                                        
                                                                                                                                
[HB 134 was held over.]                                                                                                         
                                                                                                                                
8:48:30 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Resources Standing Committee meeting was adjourned at 8:48 p.m.                                                                 

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