Legislature(2007 - 2008)BARNES 124

02/18/2008 08:30 AM House FISHERIES


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08:36:07 AM Start
08:36:22 AM HB134
10:39:45 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 134 PROTECTION OF SALMON SPAWNING WATER TELECONFERENCED
Heard & Held
                    ALASKA STATE LEGISLATURE                                                                                  
              HOUSE SPECIAL COMMITTEE ON FISHERIES                                                                            
                       February 18, 2008                                                                                        
                           8:36 a.m.                                                                                            
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Paul Seaton, Chair                                                                                               
Representative Kyle Johansen (via teleconference)                                                                               
Representative Craig Johnson (via teleconference)                                                                               
Representative Gabrielle LeDoux                                                                                                 
Representative Bryce Edgmon                                                                                                     
Representative Lindsey Holmes                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Peggy Wilson                                                                                                     
                                                                                                                                
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                                                                                
09/24/07       (H)       Heard & Held                                                                                           
09/24/07       (H)       MINUTE(FSH)                                                                                            
09/25/07       (H)       FSH AT 2:00 PM Naknek                                                                                  
09/25/07       (H)       Heard & Held                                                                                           
09/25/07       (H)       MINUTE(FSH)                                                                                            
09/26/07       (H)       FSH AT 8:30 AM Dillingham                                                                              
09/26/07       (H)       Heard & Held                                                                                           
09/26/07       (H)       MINUTE(FSH)                                                                                            
02/18/08       (H)       FSH AT 8:30 AM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
ADAM BERG, Staff                                                                                                                
to Representative Bryce Edgmon                                                                                                  
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Provided testimony on HB 134, and responded                                                              
to questions on behalf of the bill sponsor, Representative                                                                      
Edgmon.                                                                                                                         
                                                                                                                                
DAVID CHAMBERS, Ph.D., President                                                                                                
Center for Science in Public Participation                                                                                      
Bozeman, Montana                                                                                                                
POSITION STATEMENT:  Provided testimony and responded to                                                                      
questions on HB 134.                                                                                                            
                                                                                                                                
BRIAN KANE, Attorney                                                                                                            
Legislative Legal Counsel                                                                                                       
Legislative Legal and Research Services                                                                                         
Legislative Affairs Agency                                                                                                      
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Responded to questions on HB 134.                                                                        
                                                                                                                                
ED FOGELS, Director                                                                                                             
Office of Project Management & Permitting                                                                                       
Department of Natural Resources (DNR)                                                                                           
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Provided testimony and responded to                                                                      
questions on HB 134.                                                                                                            
                                                                                                                                
SCOTT THORSEN (ph)                                                                                                              
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Spoke in opposition to HB 134.                                                                           
                                                                                                                                
MARTHA CROW                                                                                                                     
Douglas, Alaska                                                                                                                 
POSITION STATEMENT:  Spoke in support of HB 134.                                                                              
                                                                                                                                
MATTHEW NICOLAI, President                                                                                                      
Calista Corporation                                                                                                             
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Spoke in opposition to HB 134.                                                                           
                                                                                                                                
TREFON ANGASAN                                                                                                                  
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Spoke in opposition to HB 134.                                                                           
                                                                                                                                
RALPH ANGASAN SR., President                                                                                                    
Alaska Peninsula Corporation (APC)                                                                                              
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Spoke in opposition to HB 134.                                                                           
                                                                                                                                
DAN DUNAWAY                                                                                                                     
Dillingham, Alaska                                                                                                              
POSITION STATEMENT:  Spoke in support of HB 134.                                                                              
                                                                                                                                
KAREN CURRY                                                                                                                     
Far Bank Enterprises                                                                                                            
Bainbridge, Washington                                                                                                          
POSITION STATEMENT:  Spoke in support of HB 134.                                                                              
                                                                                                                                
ROBERTA HIGHLAND                                                                                                                
Homer, Alaska                                                                                                                   
POSITION STATEMENT:  Spoke in support of HB 134.                                                                              
                                                                                                                                
FRANK WOODS                                                                                                                     
Bristol Bay Native Association (BBNA)                                                                                           
Dillingham, Alaska                                                                                                              
POSITION STATEMENT:  Spoke in support of HB 134.                                                                              
                                                                                                                                
TERRY HOEFFERLE                                                                                                                 
Nunamta Aulukestai                                                                                                              
Dillingham, Alaska                                                                                                              
POSITION STATEMENT:  Spoke in support of HB 134.                                                                              
                                                                                                                                
THOMAS TILDEN, Chief                                                                                                            
Curyung Tribal Council                                                                                                          
Choggiung Limited                                                                                                               
Dillingham, Alaska                                                                                                              
POSITION STATEMENT:  Spoke in support of HB 134.                                                                              
                                                                                                                                
JEREMIAH MILLEN, Field Representative                                                                                           
Alaska Wilderness League (AWL)                                                                                                  
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Spoke in support of HB 134.                                                                              
                                                                                                                                
GEORGE MATZ                                                                                                                     
Cook Inlet Alliance                                                                                                             
Kachemak Bay Conservation Society                                                                                               
Homer, Alaska                                                                                                                   
POSITION STATEMENT:  Spoke in support of HB 134.                                                                              
                                                                                                                                
KONRAD SCHAAD                                                                                                                   
Homer, Alaska                                                                                                                   
POSITION STATEMENT:  Spoke in support of HB 134.                                                                              
                                                                                                                                
MARK MUNRO                                                                                                                      
Homer, Alaska                                                                                                                   
POSITION STATEMENT:  Spoke in support of HB 134.                                                                              
                                                                                                                                
JOE FAITH                                                                                                                       
Dillingham, Alaska                                                                                                              
POSITION STATEMENT:  Spoke in support of HB 134.                                                                              
                                                                                                                                
BRIAN KRAFT                                                                                                                     
Trout Unlimited                                                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Spoke in support of HB 134.                                                                              
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR  PAUL   SEATON  called  the  House   Special  Committee  on                                                             
Fisheries  meeting  to  order at  8:36:07  AM.    Representatives                                                             
Seaton, Edgmon,  Holmes, and LeDoux  were present at the  call to                                                               
order.     Representatives   Johnson  (via   teleconference)  and                                                               
Johansen  (via  teleconference) arrived  as  the  meeting was  in                                                               
progress.                                                                                                                       
                                                                                                                                
HB 134-PROTECTION OF SALMON SPAWNING WATER                                                                                    
                                                                                                                                
8:36:22 AM                                                                                                                    
                                                                                                                                
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 provided some of  the history of the bill, including                                                               
the field hearings, and explained that  Version O, is a result of                                                               
the field hearing testimonies.                                                                                                  
                                                                                                                                
REPRESENTATIVE LEDOUX  moved to adopt Version  25-LS0381\O, Kane,                                                               
1/22/08, as the working document.                                                                                               
                                                                                                                                
REPRESENTATIVE HOLMES objected for discussion.                                                                                  
                                                                                                                                
8:39:13 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EDGMON,  sponsor  of  HB 134,  said  that  public                                                               
testimony  in  Bristol  Bay identified  two  common  themes:  the                                                               
overriding concern that  no harm should come to  the watershed no                                                               
matter the feelings toward Pebble  Mine, and the lack of economic                                                               
opportunities for individuals and communities  in the region.  He                                                               
pointed out that everyone who  testified wants to keep the waters                                                               
clean and  the subsistence and  commercial fisheries intact.   He                                                               
noted that  although many people  support the concept of  HB 134,                                                               
they have  concern for any  unintended consequences of  the bill,                                                               
specifically related  to economic development.   He reported that                                                               
he worked  with his  staff to  incorporate these  public concerns                                                               
into Version O.                                                                                                                 
                                                                                                                                
8:42:19 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EDGMON  then turned  to the  major changes  to the                                                               
bill.   Beginning with Section  2, he  explained that all  of the                                                               
exemptions have  been removed and the  prohibitions and penalties                                                               
will only apply  to sulfide mining operations in  the Bristol Bay                                                               
Fisheries Reserve,  not any  jurisdictions outside  this reserve.                                                               
He explained  that there will  be fines of  up to $1  million per                                                               
day  for  damage from  "sulfide  mining  operations" [defined  in                                                               
Section 2, lines 25-27] to  the "anadromous waters of the Bristol                                                               
Bay watershed" [defined in Section 2, lines 22-24].                                                                             
                                                                                                                                
8:46:24 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EDGMON summarized  Section  3,  which requires  a                                                               
resolution of  legislative approval for  any oil, gas,  or mining                                                               
activity  in the  Bristol Bay  Fisheries Reserve.   He  explained                                                               
that he  has determined through his  discussions with Legislative                                                               
Legal  Services that  this is  not  special interest  legislation                                                               
because the  bill deals with  the statutorily  designated Bristol                                                               
Bay  Fisheries  Reserve.    He   opined  that  HB  134  does  not                                                               
constitute a "takings,"  which he defined as  a government action                                                               
that  diminishes  a  leaseholder's property  right,  because  the                                                               
courts have  clearly stated that exploration  rights are separate                                                               
from development rights.                                                                                                        
                                                                                                                                
8:49:02 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX  related  her understanding  that  sulfide                                                               
mining  is not  allowed unless  the legislature  finds this  will                                                               
cause no danger to the fishery.                                                                                                 
                                                                                                                                
REPRESENTATIVE EDGMON noted his agreement.                                                                                      
                                                                                                                                
REPRESENTATIVE  LEDOUX  inquired   whether  Section  2  prohibits                                                               
mining,  and  if it  is  possible  to mine  without  withdrawing,                                                               
diverting, or pumping water.                                                                                                    
                                                                                                                                
REPRESENTATIVE  EDGMON  specified that  the    intent is  not  to                                                               
prohibit  mining.    However, whether  this  bill  does  prohibit                                                               
mining  by  virtue  of  the  penalties  for  damaging  anadromous                                                               
streams is  a policy question  that is central  to the bill.   He                                                               
expressed interest in the [mining] industry's point of view.                                                                    
                                                                                                                                
REPRESENTATIVE   LEDOUX   asked   if  channeling,   damming,   or                                                               
relocating is always defined as damaging.                                                                                       
                                                                                                                                
REPRESENTATIVE  EDGMON stated  that Section  2, lines  9-12, uses                                                               
existing  ADF&G language  from AS  16.10.   He further  explained                                                               
that Section 2, lines 13-16,  include terms his staff compiled to                                                               
give additional meaning  to lines 9-12.  He allowed  that some of                                                               
these terms may be recognized to have unintended consequences.                                                                  
                                                                                                                                
CHAIR  SEATON, referring  to  Section 2,  lines  10-11, asked  if                                                               
reinjection of  water, similar to the  oil and gas process,  is a                                                               
concern if it occurs within an  area that is not surface overlaid                                                               
by salmon water.                                                                                                                
                                                                                                                                
REPRESENTATIVE EDGMON agreed that this  is correct as long as the                                                               
reinjection is not in the proximity of an anadromous stream.                                                                    
                                                                                                                                
8:53:06 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  asked what defines  the proximity to a  stream, and                                                               
whether Section 2(a)  applies to any water that  is pumped and/or                                                               
reinjected within the watershed.                                                                                                
                                                                                                                                
REPRESENTATIVE EDGMON replied that the  intent is for the bill to                                                               
have a very broad application,  giving anadromous streams as much                                                               
protection as possible.                                                                                                         
                                                                                                                                
REPRESENTATIVE  HOLMES  asked  for   an  explanation  of  sulfide                                                               
mining.                                                                                                                         
                                                                                                                                
8:54:27 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EDGMON  responded that  no definition  for sulfide                                                               
mining exists in state statutes,  so it is necessary to construct                                                               
a definition.                                                                                                                   
                                                                                                                                
ADAM  BERG, Staff  to Representative  Bryce Edgmon,  Alaska State                                                               
Legislature, said  that the  sponsor relied  on scientists  for a                                                               
definition.   Legislative Legal and  Research Services  asked the                                                               
sponsor to  list the minerals.   He mentioned that the  author of                                                               
the mineral list was David Chambers.                                                                                            
                                                                                                                                
8:55:52 AM                                                                                                                    
                                                                                                                                
DAVID  CHAMBERS, PhD,  President,  Center for  Science in  Public                                                               
Participation, said  that Mr. Berg requested  technical advice on                                                               
sulfide  mining.    He  said  he advised  the  sponsor  on  which                                                               
minerals to include on a list  of sulfide minerals.  He explained                                                               
that gold is  not a sulfide mineral, although  gold does commonly                                                               
occur with  sulfide minerals.   There are  many gold  mines which                                                               
have sulfide mining  problems, including acid mine  drainage.  He                                                               
mentioned  the  Pogo  and  Kensington  Mines  as  examples.    He                                                               
explained  that placer  mining is  gold mining  in a  non-sulfide                                                               
environment.                                                                                                                    
                                                                                                                                
REPRESENTATIVE HOLMES  asked if gold  should be included  on this                                                               
mineral list.                                                                                                                   
                                                                                                                                
8:58:39 AM                                                                                                                    
                                                                                                                                
DR. CHAMBERS responded that mining  gold in sulfide rock material                                                               
could pose a  threat to the fisheries.   He said he  did not know                                                               
if gold would be covered  under this legislation, even though the                                                               
intent appears that  it should.  He offered his  belief that this                                                               
may be  a problem if  gold is the  only recovered mineral  from a                                                               
mine.  He warned that his  worldwide mining studies show there is                                                               
more water  damage from  gold mining  in sulfide  [minerals] than                                                               
from any other single source.                                                                                                   
                                                                                                                                
8:59:50 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX  asked Mr.  Chambers if  gold can  be mined                                                               
with a sulfide operation.                                                                                                       
                                                                                                                                
DR. CHAMBERS responded that it is  most typical for gold mines to                                                               
be sulfide mines.                                                                                                               
                                                                                                                                
REPRESENTATIVE LEDOUX posed a scenario  in which gold is left off                                                               
[this mineral  list], and  asked if someone  could mine  for gold                                                               
and just call the rest "by catch".                                                                                              
                                                                                                                                
REPRESENTATIVE EDGMON  said that  although gold was  omitted from                                                               
the mineral list  because he did not want the  bill to affect the                                                               
placer miners, it may have to be included in the bill.                                                                          
                                                                                                                                
REPRESENTATIVE LEDOUX asked whether placer miners use sulfide.                                                                  
                                                                                                                                
9:02:09 AM                                                                                                                    
                                                                                                                                
DR. CHAMBERS explained that gold  is often deposited with sulfide                                                               
minerals  during a  volcanic  genesis.   When  gold deposits  are                                                               
exposed by weather  and moved by gravity,  often downstream, most                                                               
of  the sulfide  minerals are  weathered away,  leaving only  the                                                               
placer gold.                                                                                                                    
                                                                                                                                
9:03:43 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON asked  if cyanide releases any  sulfides during gold                                                               
processing, and, if so, would this be exempt under HB 134.                                                                      
                                                                                                                                
DR. CHAMBERS  replied that  it is  not common  to use  cyanide in                                                               
placer  operations,  as  gravity   is  used  for  the  separation                                                               
process.                                                                                                                        
                                                                                                                                
REPRESENTATIVE EDGMON noted that cyanide  is not mentioned in the                                                               
bill.                                                                                                                           
                                                                                                                                
9:05:00 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHANSEN asked  who  Dr. Chambers  works for  and                                                               
where there is more information about his organization.                                                                         
                                                                                                                                
DR.  CHAMBERS explained  that the  Center for  Science in  Public                                                               
Participation is a non-profit  company providing technical advice                                                               
on  mining,  primarily  to  public  interest  groups  and  tribal                                                               
governments.                                                                                                                    
                                                                                                                                
9:06:51 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON  referred to  the  Legislative  Legal and  Research                                                               
Services  memorandum,  dated February  12,  2008,  which read  in                                                               
part:                                                                                                                           
                                                                                                                                
     When  the  legislature wishes  to  act  in an  advisory                                                                    
     capacity,  it may  do so  by resolution;  but, when  it                                                                    
     intends its action  to have a binding  effect on people                                                                    
     outside  the   legislature,  it  may  do   so  only  by                                                                    
     following the enactment procedures for bills.                                                                              
                                                                                                                                
CHAIR  SEATON, referring  to Section  3, asked  if the  use of  a                                                               
resolution is appropriate.                                                                                                      
                                                                                                                                
REPRESENTATIVE EDGMON  referred the  question to Brian  Kane, the                                                               
author of the memorandum.                                                                                                       
                                                                                                                                
CHAIR  SEATON  asked  Mr.  Kane to  clarify  whether  a  positive                                                               
enactment of a resolution is binding or advisory.                                                                               
                                                                                                                                
9:10:25 AM                                                                                                                    
                                                                                                                                
BRIAN  KANE,  Attorney,  Legislative Legal  Counsel,  Legislative                                                               
Legal and  Research Services, Legislative Affairs  Agency, opined                                                               
that in  State v. A.L.I.V.E.  Voluntary (Alaska 1980),  the court                                                             
clearly  states that  any action  to  bind a  person outside  the                                                               
legislature needs to  be passed as a bill, not  a resolution.  He                                                               
did not know if AS  38.05.140(f) referenced in Version O, Section                                                               
3, has  been challenged in court.   He offered his  belief that a                                                               
binding action would require a bill, not a resolution.                                                                          
                                                                                                                                
CHAIR SEATON  asked Mr. Kane  whether a resolution passed  by the                                                               
legislature is binding.                                                                                                         
                                                                                                                                
MR. KANE expressed  his belief that the court would  not rule the                                                               
resolution is binding.  Based  on A.L.I.V.E. Voluntary, the court                                                             
has said  a resolution is  advisory, and  a bill is  binding when                                                               
regulating someone outside the legislature.                                                                                     
                                                                                                                                
REPRESENTATIVE  LEDOUX  asked if  this  would  become binding  by                                                               
changing the wording from "resolution"  to "bill", and would this                                                               
change create any unintended consequences.                                                                                      
                                                                                                                                
MR. KANE  responded that  it was  his belief  that the  change in                                                               
wording  would appear  to meet  the requirements  from A.L.I.V.E.                                                             
Voluntary without  any foreseeable  unintended consequences.   He                                                             
said the  goal of  the bill is  to work with  what is  already in                                                               
statute, AS 38.05.140(f).                                                                                                       
                                                                                                                                
9:13:14 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  asked Representative Edgmon  for a synopsis  of the                                                               
Legislative   Legal  and   Research  Services   memorandum  dated                                                               
February 12, 2008 in response to the "takings" issue.                                                                           
                                                                                                                                
9:14:21 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EDGMON responded  that  "resolution"  is used  in                                                               
Section  3 instead  of  "legislation" because  of  concern for  a                                                               
"takings" claim.                                                                                                                
                                                                                                                                
MR.  BERG explained  that  the February  12,  2008 legal  opinion                                                               
states that there may be  a "takings" claim regardless of Section                                                               
3.                                                                                                                              
                                                                                                                                
REPRESENTATIVE EDGMON  offered his belief that  while the opinion                                                               
from  Legislative Legal  and Research  Services is  valid, it  is                                                               
legally conservative.  He offered  a "far more extensive opinion"                                                               
on "takings" which  was different from that  of Legislative Legal                                                               
and  Research Services.    This legal  opinion  dated January  9,                                                               
2007, "Elevating  Habitat Conservation  Standards in  the Bristol                                                               
Bay  Drainages," written  by William  P. Horn  of Birch,  Horton,                                                               
Bittner, and Cherot, was commissioned by Trout Unlimited.                                                                       
                                                                                                                                
CHAIR  SEATON mentioned  that although  many legal  opinions have                                                               
been submitted, he  wants to be able to address  the February 12,                                                               
2008, opinion.   He reminded the  public that for those  who have                                                               
already submitted comments,  it is not necessary to  do so again.                                                               
He asked that the public testimony only address Version O.                                                                      
                                                                                                                                
9:20:18 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON  established that  he  wanted  to get  some  agency                                                               
opinions and clarifications  on the record before  he begins with                                                               
public opinion.                                                                                                                 
                                                                                                                                
ED FOGELS,  Director, Office of Project  Management & Permitting,                                                               
Department of  Natural Resources  (DNR), said  that DNR  does not                                                               
have  a position  on Version  O, but  would like  to mention  the                                                               
effect on its land management.                                                                                                  
                                                                                                                                
MR. FOGELS explained that the  differences from the original bill                                                               
to  Version  O are:    the  restrictions  on water  usage  within                                                               
Bristol  Bay  Fisheries  Reserve  are  limited  to  only  include                                                               
sulfide mining  and leasable minerals; and  the activities within                                                               
the reserve  are restricted only  if they affect  anadromous fish                                                               
waters.   He  noted  that AS  41.14.870  defines anadromous  fish                                                               
waters, which do  not include tributary waters  of the anadromous                                                               
waters or up  surface waters.  He commented that  Version O makes                                                               
unclear to DNR which waters are  affected.  He noted that Version                                                               
O prohibits any water usage by  sulfide mines, and given that all                                                               
mines  must  use some  amount  of  water, Version  O  effectively                                                               
prohibits all sulfide mining.                                                                                                   
                                                                                                                                
MR. FOGELS  relayed DNR's belief  that the term  "sulfide mining"                                                               
is vague.   He expressed his understanding that  because the list                                                               
of specified  metals which define  "sulfide mining" in  Version O                                                               
does not include gold, then a  gold mining operation would not be                                                               
subject to  this bill, even  if sulfide minerals were  present in                                                               
the ore.                                                                                                                        
                                                                                                                                
MR. FOGELS noted that there  are already provisions for civil and                                                               
criminal  penalties   for  environmental  release   or  reporting                                                               
violations, under  AS 46.03.760, AS 46.03.790,  and AS 12.55.035.                                                               
He  mentioned  that AS  46.03.780  provides  that for  violations                                                               
which cause  the death  of fish,  animals, or  vegetation, and/or                                                               
damages to the  environment, the violator is liable  to the state                                                               
for  damages.   He  observed  that Version  O  affects state  and                                                               
Native corporation land and water.                                                                                              
                                                                                                                                
MR. FOGELS requested more clarity  as to which agency, Department                                                               
of   Natural  Resources   (DNR),   Department  of   Environmental                                                               
Conservation  (DEC), or  the  Alaska Department  of  Fish &  Game                                                               
(ADF&G), assesses  these fines.   He requested an  explanation of                                                               
the  process for  someone to  defend against  alleged fines,  and                                                               
whether  these  fines  will be  set  through  an  administrative,                                                               
civil, or criminal action.                                                                                                      
                                                                                                                                
MR.  FOGELS commented  that  the  reference in  Section  3 to  AS                                                               
38.05.135  appears to  be in  error, unless  the bill  intends to                                                               
prohibit  the development  of leasable  minerals.   He asked  how                                                               
Section  3, which  is intended  to apply  to all  mineral rights,                                                               
will  work  with  Section 2,  which  effectively  prohibits  most                                                               
mining.                                                                                                                         
                                                                                                                                
9:25:08 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EDGMON asked what  is the maximum penalty assessed                                                               
under Title 46.                                                                                                                 
                                                                                                                                
MR. FOGELS offered  his belief that fines may range  from $500 to                                                               
$100,000  per violation  and that  AS 46.03.780  may require  the                                                               
violator  to restock  and restore  the environment  to its  prior                                                               
condition.                                                                                                                      
                                                                                                                                
REPRESENTATIVE EDGMON  explained that the  intent of the  bill is                                                               
to increase the penalties for  sulfide mining to be comparable to                                                               
those  for oil  discharge, as  the current  mining penalties  are                                                               
insufficient to protect the anadromous streams into Bristol Bay.                                                                
                                                                                                                                
CHAIR SEATON asked  for his interpretation as to  whether page 2,                                                               
lines 11-12, includes the entire watershed.                                                                                     
                                                                                                                                
MR.  FOGELS expressed  his  belief that  this  would include  the                                                               
entire watershed.                                                                                                               
                                                                                                                                
CHAIR SEATON said  the committee would ask  Legislative Legal and                                                               
Research  Services  for  clarification regarding  the  difference                                                               
between Section 2(a) and 2(b).                                                                                                  
                                                                                                                                
9:29:36 AM                                                                                                                    
                                                                                                                                
SCOTT  THORSEN  (ph) said  that  the  bill is  irresponsible  and                                                               
duplicative because  federal and state water  quality regulations                                                               
coupled  with modern  mining techniques  are already  responsibly                                                               
managing  the waters.   He  mentioned that  the bill  is a  semi-                                                               
transparent attempt to stop the Pebble Mine.                                                                                    
                                                                                                                                
MARTHA  CROW  said  that  she  supports  HB  134  because  it  is                                                               
important  to keep  Alaska's water  clean.   She said  she misses                                                               
drinking water directly from the river.                                                                                         
                                                                                                                                
9:33:03 AM                                                                                                                    
                                                                                                                                
MATTHEW  NICOLAI, President,  Calista Corporation,  said that  he                                                               
has  pledged to  protect the  company assets,  which include  the                                                               
subsurface  rights.   He mentioned  that  HB 134  does not  allow                                                               
exploration of  the land, which will  result in a loss  of shared                                                               
revenue  for all  the regional  and village  Native corporations.                                                               
He offered  his belief  that HB  134 will  result in  a "takings"                                                               
lawsuit  against   the  state.     He   mentioned  that   he  has                                                               
participated in the development  of 18 federal environmental laws                                                               
to protect Native lands.                                                                                                        
                                                                                                                                
9:38:05 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EDGMON  said that a  survey of Bristol  Bay Native                                                               
Corporation shareholders  revealed 69  percent are  in opposition                                                               
to some fashion of the mine.                                                                                                    
                                                                                                                                
REPRESENTATIVE EDGMON  pointed out that this  legislation impacts                                                               
the Bristol Bay  Fisheries Preserve and that  the proposed Pebble                                                               
Mine site is on state land, not Native corporation land.                                                                        
                                                                                                                                
REPRESENTATIVE   LEDOUX   asked   if   Calista   Corporation   is                                                               
economically involved,  or philosophically involved  with respect                                                               
to Native corporation land.                                                                                                     
                                                                                                                                
MR.  NICOLAI responded  that if  any  legislation affects  Alaska                                                               
Native Claims  Settlement Act (ANCSA)  defined incomes,  then all                                                               
Native corporations must  take a position.  He  explained that an                                                               
Alaska  Federation   of  Natives  (AFN)  committee   opposed  the                                                               
original bill  and the  committee will  most likely  reconvene to                                                               
address  Version  O.     He  allowed  that   denial  of  resource                                                               
exploration on  Native land will  result in an economic  loss and                                                               
the Native corporations need to protect their assets.                                                                           
                                                                                                                                
9:42:00 AM                                                                                                                    
                                                                                                                                
TREFON  ANGASAN said  he was  opposed to  HB 134  because of  the                                                               
"takings" issue.                                                                                                                
                                                                                                                                
RALPH  ANGASAN  SR.,   President,  Alaska  Peninsula  Corporation                                                               
(APC), declared that the APC opposes  all versions of HB 134.  He                                                               
explained  that  the  APC landholdings  included  land  near  the                                                               
Pebble deposit.  He offered his  belief that HB 134 constitutes a                                                               
"taking" by not  allowing the APC a determination of  use for its                                                               
own property.   If  sulfide mining is  prohibited in  the Bristol                                                               
Bay  region,  the  APC surface  exploration  agreements  will  be                                                               
negated, exploration activities will  cease, shareholder jobs and                                                               
APC  revenue will  be  lost,  and the  APC  will  hold the  state                                                               
accountable  for any  financial loss.   He  explained his  belief                                                               
that   the   newly-formed   APC  subsidiary   for   environmental                                                               
consulting  will  lose  millions  of  dollars  in  contracts  and                                                               
contract  opportunities.   He  said  he  believes the  bill  will                                                               
affect the  APC shareholders expectations that  mining will bring                                                               
improved  transportation, communications,  and  utilities to  the                                                               
region,  and he  believes this  will  result in  the movement  of                                                               
young people to urban areas.   He offered his further belief that                                                               
HB  134  is  based  on  "unfounded  and  baseless  untruths  with                                                               
absolutely  no   scientific  evidence   to  support   the  meager                                                               
findings."   He opined that  this bill gives the  appearance that                                                               
tourism  and   sport  fishing  are  more   important  than  other                                                               
sustainable economies  for providing good jobs  and opportunities                                                               
to local  residents and businesses.   He offered his  belief that                                                               
HB 134 is a product of special interests.                                                                                       
                                                                                                                                
9:49:18 AM                                                                                                                    
                                                                                                                                
DAN DUNAWAY  said that  he was raised  in Alaska,  graduated from                                                               
the  University  of  Alaska  Fairbanks (UAF)  with  a  degree  in                                                               
fisheries biology, worked during  the university summer breaks in                                                               
Bristol Bay,  and upon  graduation was  hired by  the ADF&G.   He                                                               
reflected  that  he worked  in  Bristol  Bay  as an  ADF&G  sport                                                               
fisheries biologist  from 1989 until  his retirement in  2002 and                                                               
he currently  serves on  the Bristol  Bay Rural  Advisory Council                                                               
for the federal subsistence program.                                                                                            
                                                                                                                                
MR. DUNAWAY  encouraged "gold  associated with  sulfide minerals"                                                               
to be included  on the minerals list in Version  O.  He explained                                                               
that although  he is  not entirely  opposed to  mines, but  he is                                                               
concerned with the  damage from sulfide mines.   He expressed his                                                               
desire  to be  assured  that  the design  and  operation for  any                                                               
permitted mines  is truly sufficient  to protect the  Bristol Bay                                                               
waters and fisheries.                                                                                                           
                                                                                                                                
MR. DUNAWAY explained that his  studies of mining have shown that                                                               
sulfide mines have tremendous potential  to damage the fisheries.                                                               
The ores  and tailings  of sulfide metal  mines, when  exposed to                                                               
air and water, generate sulfuric  acid that dissolves toxic heavy                                                               
metals which  are then  carried into  surface and  ground waters.                                                               
These toxic metals and compounds  kill fish, animals, and plants.                                                               
They can also threaten human health.   He cited the Flambeau mine                                                               
in Wisconsin, which  the mining industry touts  as a successfully                                                               
operated and  closed mine.   Although the  mine closure  work was                                                               
certified  as  complete, he  directed  attention  to two  letters                                                               
which  contend  numerous problems  still  exist.   These  letters                                                               
point out  that toxic ground  water is getting into  the Flambeau                                                               
River, and post-mine water quality  is "far worse than acceptable                                                               
standards."  He stated that  he believes the mining technology is                                                               
not  yet  adequate  to  protect  [the  fisheries],  and  that  he                                                               
supports HB 134.                                                                                                                
                                                                                                                                
CHAIR SEATON opined  that Version O prohibits any  mining at all,                                                               
and  asked  if  there  are   water  quality  standards  that  are                                                               
acceptable.                                                                                                                     
                                                                                                                                
REPRESENTATIVE   EDGMON  clarified   that   Version   O  is   not                                                               
prohibiting all mining, but is  addressing anadromous streams and                                                               
the penalties for damage to anadromous streams.                                                                                 
                                                                                                                                
CHAIR SEATON asked Mr. Dunaway  to offer his interpretation of HB
134 as  a bill that  either addresses water quality  standards or                                                               
prohibits water usage in an area associated with a sulfide mine.                                                                
                                                                                                                                
MR. DUNAWAY offered  that his interpretation of HB 134  is not to                                                               
prohibit  a mine,  but instead  to allow  a mine  with very  high                                                               
standards for the protection of fish and water.                                                                                 
                                                                                                                                
9:57:04 AM                                                                                                                    
                                                                                                                                
KAREN CURRY,  Far Bank Enterprises,  related that she grew  up in                                                               
Fairbanks as a  "die hard salmon angler" and  she understands the                                                               
impact of hard rock mining  to the surrounding communities due to                                                               
the proximity  of the Fort Knox  Mine to Fairbanks.   She offered                                                               
her belief that the fundamental  difference between the Fort Knox                                                               
Mine  and  the  proposed  Bristol Bay  mining  district  is  that                                                               
Bristol Bay is home to the largest  salmon run in the world.  She                                                               
opined  that HB  134 will  protect the  fisheries in  Bristol Bay                                                               
from sulfide  mining operations.   She commented that  the riches                                                               
of  the  Bristol Bay  area  are  its  renewable resources.    She                                                               
offered that  her company  has Alaska sales  of fishing  gear and                                                               
apparel worth almost  $4 million, most of which is  being used in                                                               
the Bristol  Bay region.  The  health of the Bristol  Bay fishery                                                               
is  important  to many  Alaskan  Natives  and Non-Natives.    She                                                               
explained that  her company  received huge  support for  its "One                                                               
Day for  Bristol Bay"  fundraiser.  She  relayed that  anglers in                                                               
the  Lower 48  are  knowledgeable about  sulfide  mining and  the                                                               
devastation  caused  by  slurry  spills,  cyanide  leaching,  dam                                                               
failures,  and toxic  dust to  watersheds  in Colorado,  Montana,                                                               
Idaho, South Dakota,  and New Mexico.  She pointed  out that when                                                               
spawning fish die, the fishing industry dies.                                                                                   
                                                                                                                                
10:01:57 AM                                                                                                                   
                                                                                                                                
ROBERTA HIGHLAND  offered her strong  support for HB  134, noting                                                               
that she  wants to see  gold included on  the mineral list.   She                                                               
said  she does  not believe  there is  the proper  technology for                                                               
mining  in this  area.   She  expressed the  need  to review  the                                                               
mining history.   She  then expressed that  "clean water  is more                                                               
precious than  any mining  development" and  HB 134  will protect                                                               
the Bristol Bay  watershed.  She opined that this  is a chance to                                                               
rectify the oversight  of not already giving this  area long term                                                               
protection.   She further  opined that Alaska  needs to  set high                                                               
standards.   She  mentioned that  there  has never  been a  legal                                                               
decision upholding  a "taking" suit.   She noted that  the Alaska                                                               
Conservation Alliance is  advocating environment, energy, ethics,                                                               
and economy as the keys to future decision-making for Alaska.                                                                   
                                                                                                                                
10:04:37 AM                                                                                                                   
                                                                                                                                
FRANK  WOODS, Bristol  Bay Native  Association (BBNA),  said that                                                               
the BBNA board declared [support  for] any legislation protecting                                                               
salmon  habitat.    He  mentioned that  this  bill  protects  the                                                               
resources  of Bristol  Bay for  the commercial,  subsistence, and                                                               
sport  fisheries because  salmon is  why people  live in  Bristol                                                               
Bay.                                                                                                                            
                                                                                                                                
10:07:49 AM                                                                                                                   
                                                                                                                                
TERRY  HOEFFERLE,  Nunamta  Aulukestai,  said  that  he  believes                                                               
Version O  has removed  many concerns  of the  local communities.                                                               
He  expressed his  agreement with  Version O's  focus on  sulfide                                                               
mining and the  earlier comments of Mr. Dunaway.   He opined that                                                               
there is  not a place  in the  world where sulfide  mining exists                                                               
that  has not  polluted the  surrounding environment.   In  fact,                                                               
many  states   with  large  scale  mining   have  passed  citizen                                                               
initiatives which no  longer allow sulfide mining.   He testified                                                               
that the further  a mining company progresses  in the exploration                                                               
and  permitting  process,  the  more likely  that  the  issue  of                                                               
"taking"  will be  raised.   He  suggested  that the  legislature                                                               
change  the  "taking" rules  to  state  that  there is  no  valid                                                               
"taking"  until there  has been  permit approval.   He  expressed                                                               
concern  that  allowing  the  process to  take  its  course  will                                                               
ultimately mean expensive "taking" litigation.                                                                                  
                                                                                                                                
10:13:10 AM                                                                                                                   
                                                                                                                                
THOMAS TILDEN, Chief, Curyung  Tribal Council, Choggiung Limited,                                                               
related that  both Curyung Tribal  Council and  Choggiung Limited                                                               
have  submitted resolutions  against the  Pebble Mine  Project to                                                               
the House  Special Committee on  Fisheries.  Speaking on  his own                                                               
behalf, he said he believes that  jail time should be included in                                                               
Section 2(c)  with the  monetary fines and  penalties.   He cited                                                               
examples of  more punitive penalties  in Canada.  He  relayed his                                                               
support for  Section 1,  which legislates  a heightened  level of                                                               
protection  for Bristol  Bay because  the people  of Bristol  Bay                                                               
depend on the salmon.  He  said he believes the Alaska Federation                                                               
of Natives  (AFN) represents a  strong commitment to  protect the                                                               
culture and the  subsistence lifestyle of Alaskan  Natives.  This                                                               
commitment to protect, he opined,  is more important than revenue                                                               
[from ANCSA, 43 U.S.C. § 1606 (ANCSA § 7) (i)(1)(A)].                                                                           
                                                                                                                                
10:20:31 AM                                                                                                                   
                                                                                                                                
JEREMIAH MILLEN,  Field Representative, Alaska  Wilderness League                                                               
(AWL),  said that  AWL  supports protection  of  the Bristol  Bay                                                               
fisheries  in   order  to  maintain  subsistence,   tourism,  and                                                               
commercial fishing which are vital to  the region.  He stated his                                                               
belief that  Alaska has  an obligation  to protect  the qualities                                                               
that  shape  its  environment,   history,  and  culture,  and  to                                                               
maintain  careful stewardship  of its  resources.   He identified                                                               
the unifying  element within  Bristol Bay  as salmon  because the                                                               
salmon fishery  drives the economy,  culture, and ecology  of the                                                               
region.                                                                                                                         
                                                                                                                                
10:24:23 AM                                                                                                                   
                                                                                                                                
GEORGE  MATZ,  Cook  Inlet Alliance,  Kachemak  Bay  Conservation                                                               
Society, opined that  HB 134 will not prohibit a  sulfide mine if                                                               
the mine  does not impact surface  or ground waters.   He relayed                                                               
that the  Cook Inlet  Alliance supports HB  134 because  the bill                                                               
sets a  clear, unequivocal standard  that leaves little  room for                                                               
creative interpretation.                                                                                                        
                                                                                                                                
10:28:49 AM                                                                                                                   
                                                                                                                                
KONRAD SCHAAD  informed the committee  that he and his  sons have                                                               
been fishing in Bristol  Bay for more than 20 years.   He said he                                                               
believes  "that Version  O  puts some  teeth"  into ensuring  the                                                               
future of  Bristol Bay.  He  expressed his belief that  fines for                                                               
infractions are not enough [to deter infractions].                                                                              
                                                                                                                                
10:30:50 AM                                                                                                                   
                                                                                                                                
MARK MUNRO  related that he and  his wife have fished  in Bristol                                                               
Bay  for 20  years.   He  explained that  he  supports Version  O                                                               
because he believes the risk [from  mining] is too great and that                                                               
the [mineral] resource  is not disappearing.   Mining, he opined,                                                               
should wait until the technology  improves, so that mining is not                                                               
putting  the   sport  fish,  commercial  fish,   and  subsistence                                                               
cultures at risk.  He noted  his agreement with the addition of a                                                               
jail penalty and personal liability to HB 134.                                                                                  
                                                                                                                                
10:32:31 AM                                                                                                                   
                                                                                                                                
JOE FAITH related his support for  Version O.  He allowed that he                                                               
would like to see "gold  associated with sulfide mining" included                                                               
on the mineral  list.  He informed the committee  that as well as                                                               
fishing,  he  runs  a  gold  suction  dredge.    He  related  his                                                               
understanding  that  placer mining  will  not  violate the  bill,                                                               
although  operating  a gold  suction  dredge  in salmon  spawning                                                               
water is  a violation of  the intent of  the bill.   He suggested                                                               
including a definition  for sulfide in the  bill because sulfides                                                               
seem to  create the [environmental]  problems.  He  advocated for                                                               
the  inclusion  of  a  jail  penalty  with  the  other  penalties                                                               
described in the bill.                                                                                                          
                                                                                                                                
10:36:15 AM                                                                                                                   
                                                                                                                                
BRIAN KRAFT, Trout Unlimited, related that he owns two fishing                                                                  
lodges in the Bristol Bay area and he has been studying the                                                                     
Pebble Project for more than four years.  He said that he                                                                       
supports Version O because he believes the bill extends the                                                                     
intent for a Bristol Bay Fisheries Reserve.  He noted that Trout                                                                
Unlimited has submitted to the committee the following                                                                          
documents:  "Predicting Water Quality Problems at Hard Rock                                                                     
Mines", "DNR's Vague Statutory Standards" dated 11/15/07, and                                                                   
the earlier referenced legal memorandum from William P. Horn,                                                                   
dated January 9, 2007.                                                                                                          
                                                                                                                                
10:39:45 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  EDGMON  clarified  that the  Bristol  Bay  Native                                                               
Corporation (BBNC)  position on HB  134 is  neutral.  He  said he                                                               
did not want  to suggest by his earlier remark  that BBNC had any                                                               
other position.                                                                                                                 
                                                                                                                                
CHAIR SEATON  announced that public  testimony would  remain open                                                               
for Wednesday's meeting [2/20/08].                                                                                              
                                                                                                                                
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Special  Committee on  Fisheries meeting  was adjourned  at 10:41                                                               
a.m.                                                                                                                            

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