Legislature(1993 - 1994)

03/22/1993 08:00 AM House RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
               HOUSE RESOURCES STANDING COMMITTEE                              
                         March 22, 1993                                        
                            8:00 a.m.                                          
                                                                               
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
  Representative Bill Williams, Chairman                                       
  Representative Bill Hudson, Vice Chairman                                    
  Representative Con Bunde                                                     
  Representative Pat Carney                                                    
  Representative John Davies                                                   
  Representative Joe Green                                                     
  Representative Jeannette James                                               
  Representative Eldon Mulder                                                  
  Representative David Finkelstein                                             
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
  None                                                                         
                                                                               
  OTHER LEGISLATORS PRESENT                                                    
                                                                               
  Representative Pete Kott                                                     
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
  *HB 213   "An Act prohibiting the commissioner of natural                    
            resources from classifying state land, water, or                   
            land and water so that mining, mineral entry and                   
            location, mineral prospecting, and mineral leasing                 
            are precluded or are designated an incompatible                    
            use without an act of the legislature if the area                  
            involved contains more than 640 acres except in                    
            certain situations; and providing for an effective                 
            date."                                                             
                                                                               
            HEARD AND HELD IN COMMITTEE FOR FURTHER                            
            CONSIDERATION                                                      
                                                                               
  (* first public hearing)                                                     
                                                                               
  WITNESS REGISTER                                                             
                                                                               
  Representative Pete Kott                                                     
  Alaska House of Representatives                                              
  State Capitol                                                                
  Juneau, Alaska  99801-1182                                                   
  Phone:  465-3777                                                             
  Position Statement:  Prime sponsor, HB 213                                   
                                                                               
  Raga Elim                                                                    
  Special Assistant to the Commissioner                                        
  Department of Natural Resources                                              
  400 Willoughby Ave.                                                          
  Juneau, Alaska  99801-1724                                                   
  Phone:  465-2400                                                             
  Position Statement: Testified in support of HB 213 on behalf                 
                      of administration                                        
                                                                               
  McKie Campbell                                                               
  Deputy Commissioner                                                          
  Department of Fish and Game                                                  
  P.O. Box 25526                                                               
  Juneau, Alaska  99802-5526                                                   
  Phone:  465-4100                                                             
  Position Statement: Testified in support of HB 213 and                       
                      amendments                                               
                                                                               
  Dennis DeBolt                                                                
  Alaska Miners Association                                                    
  One Sealaska Plaza                                                           
  Juneau, Alaska  99801                                                        
  Phone:  586-1512                                                             
  Position Statement: Testified in support of HB 213                           
                                                                               
  Phil Holsworth                                                               
  Mining Engineer                                                              
  326 4th Street, #1200                                                        
  Juneau, Alaska  99801                                                        
  Phone:  586-1383                                                             
  Position Statement: Testified in support of HB 213                           
                                                                               
  Jack Phelps                                                                  
  Legislative Aide to                                                          
  Representative Pete Kott                                                     
  State Capitol                                                                
  Juneau, Alaska  99801-1182                                                   
  Phone:  465-3777                                                             
  Position Statement: Responded to questions on HB 213                         
                                                                               
                                                                               
  PREVIOUS ACTION                                                              
                                                                               
  BILL:  HB 213                                                                
  SHORT TITLE:  LIMIT ADMINISTRATIVE LAND CLOSURES                             
  BILL VERSION:                                                                
  SPONSOR(S):   REPRESENTATIVE(S) KOTT,Phillips,Green,Brice,                   
  Mulder,Toohey                                                                
                                                                               
  TITLE:  "An Act prohibiting the commissioner of natural                      
  resources from classifying state land, water, or land and                    
  water so that mining, mineral entry and location, mineral                    
  prospecting, and mineral leasing are precluded or are                        
  designated an incompatible use without an act of the                         
  legislature if the area involved contains more than 640                      
  acres except in certain situations; and providing for an                     
  effective date."                                                             
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  03/10/93       590    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  03/10/93       591    (H)   RESOURCES, FINANCE                               
  03/10/93       596    (H)   COSPONSOR(S): BRICE, MULDER,                     
                              TOOHEY                                           
  03/22/93              (H)   RES AT 08:00 AM CAPITOL 124                      
                                                                               
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
  TAPE 93-33, SIDE A                                                           
  Number 000                                                                   
                                                                               
  The House Resources Committee was called to order by                         
  Chairman Bill Williams at 8:12 a.m.  Members present at the                  
  call to order were Representatives Williams, Hudson, Bunde,                  
  Davies, Green, James, and Mulder.  Absent at the call to                     
  order were Representatives Carney and Finkelstein.                           
                                                                               
  CHAIRMAN BILL WILLIAMS announced the agenda for the meeting                  
  would be to consider HB 213.                                                 
                                                                               
  HB 213:  LIMIT ADMINISTRATIVE LAND CLOSURES                                  
                                                                               
  Number 045                                                                   
                                                                               
  REPRESENTATIVE PETE KOTT, PRIME SPONSOR OF HB 213, explained                 
  that the bill was introduced to implement one of the                         
  recommendations of the Alaska Minerals Commission as set out                 
  in the commission's 1993 report to the legislature.  Under                   
  current law, he said, a mineral closure order (MCO) may be                   
  executed by the commissioner of the Department of Natural                    
  Resources (DNR) for one of five reasons.  Those included                     
  land disposals or land exchanges, public recreation and                      
  wildlife habitat use, resource development, transportation                   
  corridor development, and the reserve use category.                          
                                                                               
  REPRESENTATIVE KOTT referred to Title 38, which currently                    
  requires legislative action to close lands larger than 640                   
  acres for multi-purpose use.  By designating mineral                         
  exploration and development an incompatible use, MCO's have                  
  been used to keep mining out.  He provided the committee                     
  with an historical perspective, and said that at the time of                 
  statehood, some lands were selected because of the rich                      
  mineral development opportunities, and he said some of those                 
  lands are now affected by closures.                                          
                                                                               
  Number 089                                                                   
                                                                               
  REPRESENTATIVE KOTT explained that in the past nine years                    
  there have been more than 1.75 million acres placed off-                     
  limits to mineral exploration and development for public                     
  recreation and wildlife habitat purposes.  He noted that                     
  this was more than three times the amount of lands Alaska                    
  had transferred into private hands since statehood.                          
                                                                               
  REPRESENTATIVE KOTT stated his opinion that mineral                          
  exploration and development can be compatible with wildlife                  
  habitat and human recreational use.  There is strong                         
  evidence, he said, that mining could take place on many of                   
  the lands closed by MCO's with insignificant consequences to                 
  wildlife habitat.  He referred to the "footprint" necessary                  
  for mineral location and mineral extraction as very small,                   
  leaving most of the area unaffected.  House Bill 213, he                     
  said, would only affect MCO's on large parcels of land, and                  
  the discretion of the commissioner would still prevail on                    
  parcels smaller than 640 acres.                                              
                                                                               
  REPRESENTATIVE KOTT noted that there would be cases where                    
  large acreages should be closed, but because those decisions                 
  have a major statewide economic impact, it would be more                     
  appropriate for those decisions to be made after public                      
  discussion.                                                                  
                                                                               
  Number 117                                                                   
                                                                               
  REPRESENTATIVE KOTT noted further that 46% of all MCO's                      
  currently in effect were issued for reasons of land                          
  disposal, and that category, he said, is specifically exempt                 
  from the provisions of HB 213.  Also exempt, he explained,                   
  are MCO's issued to establish utility and transportation                     
  corridors or other infrastructure projects.  The                             
  commissioner's authority to apply sound land management                      
  principles in the administration of state lands, he said,                    
  will not be significantly encumbered by this bill.  The bill                 
  would help the legislature to fulfill its mandate to provide                 
  for use of resources for the maximum benefit of Alaskans, as                 
  provided in Article VIII, Section 2 of the Alaska                            
  Constitution, he added.                                                      
                                                                               
  Number 142                                                                   
                                                                               
  REPRESENTATIVE KOTT referred to a recent economic mini-                      
  summit sponsored by a joint House and Senate economic task                   
  force, which he said supported the proposal in HB 213.  He                   
  directed members' attention to a summary of that summit, and                 
  specifically to recommendations number 2 and 5 on page 7;                    
  number 5 on page 37; and on page 35 he read recommendation                   
  number 4.  (A copy of the summary may be found in the House                  
  Resources Committee Room, Capitol Room 124 , and after the                   
  adjournment of the second session of the 18th Alaska State                   
  Legislature, in the Legislative Reference Library.)                          
                                                                               
  REPRESENTATIVE KOTT then referred to comments by Glen Olds,                  
  the DNR's commissioner, which stated that the  department                    
  was willing to work with the legislature to revisit Title 38                 
  and other regulatory requirements which had become expensive                 
  to implement and excessive in creating barriers which affect                 
  the development of Alaska's natural resources.                               
                                                                               
  Number 200                                                                   
                                                                               
  CHAIRMAN WILLIAMS noted for the record that Representatives                  
  Carney and Finkelstein had joined the meeting.                               
                                                                               
  REPRESENTATIVE JOE GREEN referred to proposed amendments                     
  prepared by the DNR, and asked Representative Kott if he                     
  would speak to them.  (A copy of the proposed amendments may                 
  be found in the House Resources Committee Room, Capitol                      
  Rooom 124, and after the adjournment of the second session                   
  of the 18th Alaska State Legislature, in the Legislative                     
  Reference Library.)                                                          
                                                                               
  Number 211                                                                   
                                                                               
  REPRESENTATIVE KOTT addressed the amendments, and explained                  
  that in his view, the amendment which adds "contiguous" on                   
  page 1, lines 5 and 13 of HB 213, was not necessary.  He                     
  felt the existing statute worked fine without that.  He                      
  discussed hypothetical situations involving 640-acre                         
  sections of land, in particular those that might be                          
  separated by a natural division of land, such as a stream or                 
  river, and the ramifications of inserting the word                           
  contiguous.  He believed HB 213, as written, was sufficient                  
  in its definition.                                                           
                                                                               
  Number 242                                                                   
                                                                               
  CHAIRMAN WILLIAMS commented on the situation of a water                      
  barrier between two parcels or sections of land, and said he                 
  believed that in such cases, the lands were considered                       
  contiguous.                                                                  
                                                                               
  REPRESENTATIVE KOTT agreed that the lands in those cases are                 
  presumed to be contiguous.                                                   
                                                                               
  Number 252                                                                   
                                                                               
  REPRESENTATIVE CON BUNDE referred to the amendment proposed                  
  to add "contiguous" and speculated on potential problems                     
  that might arise if it was not added to HB 213, such as                      
  miscellaneous small parcels around the state, not contiguous                 
  to each other, being combined until the 640 acre limit is                    
  met.  He suggested that without specifying the lands must be                 
  contiguous, the bill could be interpreted to allow this.                     
                                                                               
  Number 266                                                                   
                                                                               
  REPRESENTATIVE KOTT addressed the other amendment proposed                   
  by the DNR, which called for a 60-day deadline for the                       
  legislature to review and disapprove of closures, which                      
  would be submitted in the form of executive orders.                          
  Representative Kott did not support the amendment,                           
  explaining that the legislature should be proactive rather                   
  than reactive.  Once a parcel is closed, he said, it is more                 
  difficult to open it back up.                                                
                                                                               
  Number 275                                                                   
                                                                               
  VICE CHAIRMAN BILL HUDSON remarked that the second portion                   
  of the amendment would be necessary if the first portion of                  
  the amendment was adopted.  The process, he said, requires                   
  that "if the classification is necessary for land disposal                   
  or development of a utility or transportation corridor or                    
  other projects," then "each of the mineral closing orders                    
  issued during the preceding calendar year will be submitted                  
  to the legislature in the form of an executive order" which                  
  he called the legislature's method of checks and balances on                 
  the administration.                                                          
                                                                               
  Number 301                                                                   
                                                                               
  RAGA ELIM, SPECIAL ASSISTANT TO THE COMMISSIONER OF THE                      
  DEPARTMENT OF NATURAL RESOURCES noted the administration's                   
  support for HB 213, and commented that one additional                        
  amendment was forthcoming from the Department of Fish and                    
  Game.  With respect to the second amendment from the DNR,                    
  requiring legislative approval, he told the committee that                   
  the amendment had not yet been subject to any legal review                   
  and should be considered a conceptual amendment.  In the                     
  first amendment that called for the insertion of the word                    
  "contiguous," Mr. Elim explained that the bill as written                    
  requires an act of the legislature if the area involved                      
  contains more than 640 acres.                                                
                                                                               
  MR. ELIM said the difficulty is in defining what the area is                 
  since it could be interpreted as being the whole state, or                   
  any area of the state.  He said specifying contiguous areas                  
  would clarify that question.  He remarked that the                           
  legislature still would have the authority to act, through a                 
  bill, if the administration attempts to abuse its authority.                 
  He did not agree with any inference that the procedure was                   
  open to abuse, and said it had not been a problem to date.                   
  By inserting the word "contiguous" he said some objectivity                  
  was provided for HB 213 and it would be less ambiguous.                      
                                                                               
  MR. ELIM referred to the second DNR amendment, and explained                 
  that it attempts to preserve the notion of separation of                     
  powers and checks and balances.  He added that there are                     
  critical management reasons why the mineral closing order                    
  may need to be ordered right away, as opposed to waiting for                 
  the legislature to act in the form of a bill.  For example,                  
  he commented on a situation in June of 1992, when Glen Olds                  
  became the DNR's commissioner.  There had been a question of                 
  whether Moose Creek in Denali National Park would be deemed                  
  navigable, in which case the bed of the river would become                   
  state land and would be open to mining claims.                               
                                                                               
  MR. ELIM explained that in this instance, it was imperative                  
  for the commissioner to be able to act right away to issue a                 
  mineral closing order to forestall mining claims in Denali                   
  National Park.                                                               
                                                                               
  Number 358                                                                   
                                                                               
  MR. ELIM said that the way HB 213 was drafted, through the                   
  amendment, the commissioner could take that action, subject                  
  to legislative authority to evaluate the merits and override                 
  the decision.  He raised the final point that the bill is                    
  silent with respect to the area of land exchanges, which Mr.                 
  Elim said the DNR feels should also be exempt from                           
  legislative oversight.  He explained that the state                          
  sometimes engaged in negotiations with municipalities for                    
  the intent and purpose of a land exchange, and he said it                    
  was important that during the course of those discussions,                   
  mineral closing orders be issued so that the status quo is                   
  preserved during negotiations.                                               
                                                                               
  REPRESENTATIVE JEANNETTE JAMES asked Mr. Elim to explain how                 
  HB 213 would change the current situation.                                   
                                                                               
  MR. ELIM replied that under HB 213 as drafted, closures                      
  based on recreation or habitat reasons would require the                     
  legislature to pass a bill to effect such a mineral closing                  
  order.  The way the amendments proposed by the DNR would                     
  change that, he explained, would be to make acreage                          
  contiguous, explicitly listing land exchanges as exempt from                 
  that requirement, and requiring that the legislature would                   
  respond by disapproving an executive order rather than                       
  introducing a bill that would approve the closure.  This, he                 
  said, would give the DNR the flexibility to respond quickly                  
  when mineral orders are required.                                            
                                                                               
  Number 421                                                                   
                                                                               
  REPRESENTATIVE ELDON MULDER asked Mr. Elim to clarify                        
  whether the DNR's commissioner supported HB 213.                             
                                                                               
  MR. ELIM confirmed that HB 213 had the support of the                        
  commissioner and the administration, with the DNR amendments                 
  and one other amendment that was pending.                                    
                                                                               
  VICE CHAIRMAN HUDSON referred to the proposed amendment, and                 
  specifically language relating to "when the classifications                  
  are necessary for land disposal or development of utility or                 
  transportation ..." and stated that the language was                         
  confusing.  He asked Mr. Elim to clarify what that language                  
  meant.                                                                       
                                                                               
  Number 451                                                                   
                                                                               
  MR. ELIM replied that he had taken the language in the                       
  amendment directly from the bill, and that he would                          
  recommend adding a comma after the first mention of                          
  "projects" so it would read more clearly.                                    
                                                                               
  VICE CHAIRMAN HUDSON recommended taking out, after                           
  "corridors," "or projects(.)", and inserting, "for the                       
  development of utility and transportation corridors or                       
  similar projects or infrastructure."  Mr. Elim agreed that                   
  might help to clarify the language.                                          
                                                                               
  Number 460                                                                   
                                                                               
  CHAIRMAN WILLIAMS, hearing no other questions for the                        
  representative of the DNR, introduced the next witness, from                 
  the Department of Fish and Game.                                             
                                                                               
  Number 470                                                                   
                                                                               
  MCKIE CAMPBELL, DEPUTY COMMISSIONER OF THE ALASKA DEPARTMENT                 
  OF FISH AND GAME (ADF&G), offered the ADF&G's strong support                 
  for the amendments offered by DNR, and explained that the                    
  two departments had worked closely together in developing                    
  those amendments and another from the ADF&G.  With those                     
  amendments, he said the ADF&G would support HB 213.  The                     
  ADF&G amendment, he said, would appear on page 2, line 4 of                  
  HB 213, where exceptions are listed.  After "incompatible                    
  use except", he proposed inserting, "for waters catalogued                   
  under AS 16.05.870 and state land included in legislatively                  
  designated state critical habitat areas, game refuges, and                   
  game sanctuaries, or".                                                       
                                                                               
  MR. CAMPBELL said the reference to waters catalogued under                   
  AS 16.05.870 are anadromous fish streams already catalogued                  
  by the state.  He clarified that the proposed language would                 
  not automatically close any of those lands to mineral                        
  closure, and noted that the vast majority of anadromous fish                 
  streams and legislatively designated game refuges, critical                  
  habitat areas, and sanctuaries are open to mineral closure,                  
  and would be anticipated to remain open under HB 213.  He                    
  explained that the amendment was proposed to give the DNR's                  
  commissioner the ability to retain the power he currently                    
  has when there is a highly sensitive area with a potential                   
  resource conflict that would not be in anyone's best                         
  interest.                                                                    
                                                                               
  Number 500                                                                   
                                                                               
  MR. CAMPBELL gave an example of the Mulchatna River, a                       
  highly productive salmon stream of importance to the                         
  commercial fisheries, and said the DNR's commissioner had                    
  previously closed the stream, simply the submerged lands, to                 
  mineral entry through the portions of the river critical to                  
  spawning.  Smaller streams, he explained, were generally                     
  left open and dealt with on a case by case, permit by permit                 
  basis.  He said in most of those areas, activities could                     
  occur without harm if done properly.                                         
                                                                               
  MR. CAMPBELL addressed the second part of the ADF&G                          
  amendment, and said it would exempt lands that the                           
  legislature had specifically designated as part of a                         
  critical habitat area, game refuge, or game sanctuary.  He                   
  reiterated that the amendment would not automatically close                  
  any lands but would give the DNR's commissioner the power to                 
  close them.  In most refuges, he said, multiple use would                    
  work, but in some refuges, some types of development or                      
  exploration would be inappropriate and HB 213 with the                       
  proposed amendments would give the commissioner that                         
  flexibility.                                                                 
                                                                               
  Number 521                                                                   
                                                                               
  REPRESENTATIVE GREEN asked if a venture were to be proposed                  
  under the existing laws, would there be an economic impact                   
  study (EIS) or an interdepartmental review.                                  
                                                                               
  MR. CAMPBELL replied that there would be an                                  
  interdepartmental review, and whether or not there would be                  
  an EIS would depend on the size and scope of the project.                    
  He mentioned that there are at times nuisance claims filed,                  
  or small scale claims that are not done because of known                     
  mineral potential, which would be an example of cases this                   
  might apply to.                                                              
                                                                               
  REPRESENTATIVE GREEN then asked whether those small claims                   
  did not get the review that would preclude them from coming                  
  into areas under the existing law.                                           
                                                                               
  MR. CAMPBELL explained that every claim within a Title 16                    
  stream does have a Title 16 review.  The purpose of that                     
  review, he said, is not to prevent the mine from happening,                  
  but to see how it can be done.  In most of the streams of                    
  the state, he said, it can be worked out, but there are                      
  streams with such overwhelming significance to the fisheries                 
  that closure makes sense.                                                    
                                                                               
  REPRESENTATIVE GREEN asked whether a stream in that                          
  circumstance was currently protected.                                        
                                                                               
  MR. CAMPBELL explained that there was an individual case by                  
  case permitting basis for projects proposed in or by                         
  streams.  He said that process is used in the majority of                    
  cases, but on streams of such high value, it would be better                 
  just to close the whole stream rather than deal with each of                 
  the individual cases, especially since the permit review                     
  process is expensive.                                                        
                                                                               
  Number 565                                                                   
                                                                               
  REPRESENTATIVE GREEN remarked on the perception that HB 213                  
  tends to allow mineral entry where there is no overriding                    
  reason not to.  He asked Mr. Campbell whether that was                       
  accurate.                                                                    
                                                                               
  MR. CAMPBELL explained that the language in the ADF&G                        
  amendment would not close anything; the vast majority of                     
  Title 16 streams in Legislative Designated Areas would                       
  remain open, he said.  It would allow the DNR's commissioner                 
  to administratively close a particular area if a resource                    
  value was in jeopardy.  He referred to a situation where a                   
  harbor seal pupping area required closure, which prevented                   
  the federal government from coming in and closing a much                     
  larger area.                                                                 
                                                                               
  Number 587                                                                   
                                                                               
  DENNIS DEBOLT, ALASKA MINERS ASSOCIATION, testified in                       
  support of HB 213.  His association believed the practice of                 
  closing state lands to mineral entry and mineral leasing to                  
  be an important issue.  He endorsed the bill, which he said                  
  would put reasonable and prudent restrictions on the ability                 
  of the DNR to make administrative land closures.  He                         
  explained that currently there were three ways by which                      
  lands could be closed to mineral entry and leasing.  The                     
  first was through legislative action; second was the                         
  application of Title 16 by the ADF&G where fishery resources                 
  may be affected; and third was the administrative closure by                 
  the DNR.                                                                     
                                                                               
  MR. DEBOLT commented that since statehood, more than 3.2                     
  million acres had been closed by legislative action.  The                    
  application of Title 16, he added, covers all activity that                  
  could affect a fishery, not just mining.  Administrative                     
  closures by the DNR, he said, was limited to 640 acres or                    
  less from the time of statehood until the mid to late                        
  1970's, when a series of DNR commissioners closed large                      
  areas of state land to mineral entry with little or no                       
  justification.  The statutes currently require a finding of                  
  incompatibility, and the policy has been broadly                             
  interpreted, he said.  Mineral closures were often the                       
  result of state area plans developed by the DNR with                         
  pressure from special interest groups, he added.                             
                                                                               
  Number 625                                                                   
                                                                               
  MR. DEBOLT emphasized the senselessness of the closures,                     
  noting that some of those lands had originally been selected                 
  by the state for their mineral potential.  He said the                       
  Hickel administration had generally used mineral closures                    
  within the true spirit and intent envisioned at the time of                  
  statehood.  He commented that there was a risk that future                   
  administrations might not carry forth that attitude of                       
  responsibility, and therefore HB 213 was a necessary and                     
  proper provision that would stop massive mineral closures                    
  and still give the DNR the authority to make legitimate and                  
  justifiable closures.                                                        
                                                                               
  VICE CHAIRMAN HUDSON asked Mr. DeBolt to comment on the                      
  amendments presented by the DNR.                                             
                                                                               
  MR. DEBOLT felt the original version of HB 213 was adequate,                 
  but the addition of language specifying "contiguous" lands                   
  would be appropriate.                                                        
                                                                               
  Number 647                                                                   
                                                                               
  REPRESENTATIVE GREEN referred to the ADF&G amendment to                      
  protect fisheries resources, and asked Mr. DeBolt his                        
  opinion on that amendment.                                                   
                                                                               
  MR. DEBOLT said that Title 16 provided adequate protections                  
  and that the amendment was not necessary.                                    
                                                                               
  REPRESENTATIVE GREEN asked whether Mr. DeBolt felt the                       
  amendment would kill the intent of HB 213.                                   
                                                                               
  MR. DEBOLT replied that he felt it would.                                    
                                                                               
  Number 659                                                                   
                                                                               
  PHIL HOLSWORTH, MINING ENGINEER AND FORMER COMMISSIONER OF                   
  MINES, told the committee that he had long been involved in                  
  mining issues in Alaska and had participated as Manager of                   
  Lands in the original Mental Health Lands Trust grant from                   
  the federal government in 1956.  He explained that some                      
  lands were selected within municipalities for expansion.  As                 
  the first DNR commissioner after statehood, Mr. Holsworth                    
  said he continued the process of land selection, including                   
  the North Slope.  In 1967, Mr. Holsworth said he left that                   
  position, and two years later, members of the Alaska Senate                  
  and House met and on the advice of the DNR's assistant                       
  commissioner, made an exchange with Cook Inlet Regional                      
  Corporation.                                                                 
                                                                               
  TAPE 93-33, SIDE B                                                           
  Number 000                                                                   
                                                                               
  MR. HOLSWORTH continued with his description of the history                  
  of land exchanges in the state involving lands granted to                    
  the state by the federal government for the purpose of                       
  funding mental health programs.  He said when those lands                    
  were exchanged, he objected.  He also said he felt the state                 
  had been in error in not recording the disposal and income                   
  from those lands.  Regarding HB 213, he said the bill would                  
  assist in assuring the proper use of lands.  He noted that                   
  because there is inconsistency in the actions and integrity                  
  of commissioners of the DNR, this bill would provide some                    
  oversight to their actions.                                                  
                                                                               
  Number 064                                                                   
                                                                               
  VICE CHAIRMAN HUDSON referred to the DNR amendments, and                     
  asked Mr. Holsworth whether he could see any reason not to                   
  accept the waters catalogued, and anadromous streams and                     
  subject them to the executive order process.                                 
                                                                               
  Number 106                                                                   
                                                                               
  MR. HOLSWORTH replied that waters are part of the state's                    
  lands and it would be advisable to handle the issue in that                  
  manner.                                                                      
                                                                               
  Number 127                                                                   
                                                                               
  JACK PHELPS, LEGISLATIVE AIDE TO REPRESENTATIVE PETE KOTT,                   
  commented on the proposed amendments to HB 213.  Regarding                   
  the DNR "contiguous" amendment, he said that word had                        
  intentionally been left out in the original statute which HB
  213 applies to.  He said that by adding that degree of                       
  specificity, a door to potential abuse is opened.  Regarding                 
  the amendment that would add land exchanges, he said the                     
  rationale for that made sense and the sponsor would not                      
  object.                                                                      
                                                                               
  MR. PHELPS addressed the question of areas designated by the                 
  legislature as refuges and wildlife sanctuaries, and noted                   
  that the legislature had the power to close those to mineral                 
  entry or multiple use.  He said the legislature had demurred                 
  on that point, and added that the legislature had included                   
  in the statutes a requirement that limitations imposed on                    
  those areas be jointly determined by the commissioners of                    
  the DNR and the ADF&G.  He explained that the ADF&G's                        
  commissioner currently had permitting authority under Title                  
  16 Chapter 20.050.060 and 500-530, to restrict activities in                 
  certain areas to protect endangered species.                                 
                                                                               
  MR. PHELPS told the committee that in an opinion issued by                   
  the Attorney General in 1985, the ADF&G did not have                         
  authority over transactions which were not likely to affect                  
  fish and game or their habitat.  Mr. Phelps believed that by                 
  adding this exception in HB 213, the legislature may have                    
  the effect of giving the ADF&G more authority than is                        
  currently granted under Title 16.  He said control through                   
  permits should be sufficient, with closures on larger areas                  
  to be determined by the legislature.                                         
                                                                               
  Number 203                                                                   
                                                                               
  MR. PHELPS then addressed the amendment which would require                  
  the legislature to overturn actions of the DNR's                             
  commissioner in making closure decisions through the                         
  executive order process.  He said this amendment would                       
  amount to regulatory agencies setting legislative agendas.                   
  He speculated that closures do not often exceed 640 acres,                   
  and reminded the committee that HB 213 allows the retention                  
  of closures under 640 acres by the DNR.                                      
                                                                               
  REPRESENTATIVE JOHN DAVIES asked Mr. Phelps to expand on his                 
  comments that the ADF&G amendment would broaden the                          
  authority of the ADF&G's commissioner.                                       
                                                                               
  Number 218                                                                   
                                                                               
  MR. PHELPS explained that Title 16 in its current status                     
  grants the commissioner the authority to control the use of                  
  fish and game in critical areas.  When the legislature has                   
  in the past designated large areas for habitat use, they                     
  have not contravened that Title 16 authority, he said.  In                   
  the larger area covered by a refuge or sanctuary, he added,                  
  decisions had to be made jointly by the DNR and the ADF&G.                   
  House Bill 213 in its original version, he said, would not                   
  affect that, but the amendment presented by the ADF&G,                       
  adding those larger areas to the exclusions in the bill,                     
  would allow closures by MCO's and contravene the authority                   
  of Title 16.                                                                 
                                                                               
  Number 251                                                                   
                                                                               
  REPRESENTATIVE ELDON MULDER asked Mr. Phelps to what degree                  
  the ADF&G amendment would open the door to abuse.                            
                                                                               
  MR. PHELPS replied that the current situation would prevail,                 
  within the areas that have been designated by the                            
  legislature.  House Bill 213, he explained, would change the                 
  procedure on areas over 640 acres everywhere in the state,                   
  while the amendment would exclude those areas specifically                   
  mentioned from the requirement that closures of areas over                   
  640 acres had to be approved by the legislature.  He                         
  speculated that there would be few times critical habitat in                 
  areas over 640 acres would have to be closed.                                
                                                                               
  Number 281                                                                   
                                                                               
  MR. CAMPBELL reiterated that question, and replied that                      
  there had been cases where major anadromous streams have had                 
  to be closed, and in those cases, because of the length                      
  involved, the total area could easily exceed 640 acres.  He                  
  added that the situation does not happen often, and that                     
  having the ability to make closures does not mean that any                   
  areas will automatically be closed.                                          
                                                                               
  REPRESENTATIVE MULDER asked for clarification on which                       
  authorities rest with the DNR and which with the ADF&G under                 
  HB 213 and the proposed amendments.                                          
                                                                               
  Number 295                                                                   
                                                                               
  MR. PHELPS noted that all land decisions are essentially                     
  under Title 38, and not Title 16.  He commented that the                     
  need addressed in the writing of Title 16 tends to be                        
  addressed through Title 38 authority, which allows larger                    
  closures.                                                                    
                                                                               
  Number 310                                                                   
                                                                               
  VICE CHAIRMAN HUDSON felt the opposite was true of Mr.                       
  Phelps' interpretation.  House Bill 213 as written, he said,                 
  would be enhanced by the checks and balances provided in the                 
  amendments, if the sponsor truly wanted to make certain that                 
  the legislature keeps its eye on any mineral closings.  He                   
  spoke specifically to the language in the second DNR                         
  amendment which calls for the DNR to present mineral                         
  closings to the legislature for review within the first ten                  
  days of a legislative session.  If waters catalogued under                   
  16.05.870 were not excluded, and critical habitat and game                   
  refuges, he asked Mr. Phelps where in the statutes those                     
  would be handled.                                                            
                                                                               
  Number 340                                                                   
                                                                               
  MR. PHELPS replied that Title 16.20.050 and 060 deal with                    
  endangered species and critical habitat.  Regarding the idea                 
  that the executive order approach would contravene the                       
  intent of HB 213, he said that currently the DNR makes the                   
  closure with no review process.  The bill, if amended the                    
  way the DNR has requested, he explained, would be an                         
  improvement on the current status because it would require                   
  legislative review of a number of those closures.  The                       
  difference, he said, between that approach and the one                       
  suggested by the sponsor, was that under the sponsor's                       
  suggestion, the closures would be initiated by the                           
  legislature.                                                                 
                                                                               
  MR. PHELPS believed it would require an act of the                           
  legislature to close off access to the state's economic                      
  resources.  He suggested the committee ask themselves                        
  whether it was primarily the prerogative of the legislature,                 
  or the prerogative of the executive branch.  If they felt                    
  that it was the prerogative of the executive branch and the                  
  legislature only needed to review the decision, then he                      
  suggested they go with the amendment.  The sponsor's                         
  position, he added, was that it should be the legislature's                  
  prerogative to make the closures.                                            
                                                                               
  Number 378                                                                   
                                                                               
  CHAIRMAN WILLIAMS remarked that the legislative Legal                        
  Services division had been in contact with the committee by                  
  phone and had said the DNR amendment calling for an                          
  executive order was not lawful because executive orders have                 
  specific rules as to their use.                                              
                                                                               
  REPRESENTATIVE PAT CARNEY commented that this would only be                  
  a problem if the committee decided to adopt the DNR                          
  amendments.                                                                  
                                                                               
  CHAIRMAN WILLIAMS remarked that because the amendments had                   
  been delivered to the committee just prior to the meeting,                   
  the parties had not had time to review them.                                 
                                                                               
  Number 401                                                                   
                                                                               
  REPRESENTATIVE GREEN asked how HB 213, as originally drafted                 
  or with the amendments presented by the DNR and the ADF&G,                   
  would affect the state's problems relating to land use or                    
  closure decisions of the federal government.                                 
                                                                               
  MR. PHELPS replied that it seemed to him that an emergency                   
  closure capability driven by federal action would be an                      
  appropriate way to address that situation.                                   
                                                                               
  Number 420                                                                   
                                                                               
  REPRESENTATIVE DAVIES questioned the committee procedure                     
  that would be used to address the draft amendments.  He                      
  suggested that the amendments be drafted in legal form by                    
  the Division of Legal Services' attorneys.                                   
                                                                               
  Number 425                                                                   
                                                                               
  REPRESENTATIVE CON BUNDE commented that perhaps HB 213                       
  should be moved to the next committee as it was, and the                     
  amendments be submitted in final form at that committee.                     
                                                                               
  CHAIRMAN WILLIAMS noted that the next committee of referral                  
  was House Finance.                                                           
                                                                               
  VICE CHAIRMAN HUDSON remarked that Legislative Legal                         
  Services' advice that the executive order process was not                    
  the appropriate method to accomplish the goals of the DNR                    
  amendment to HB 213 was reason to consider that amendment                    
  out of order.                                                                
                                                                               
  Number 442                                                                   
                                                                               
  REPRESENTATIVE DAVID FINKELSTEIN agreed with the question of                 
  using the executive order process, but suggested that                        
  another procedure be used or established that would meet the                 
  intent of the amendment.                                                     
                                                                               
  REPRESENTATIVE MULDER commented that if HB 213 was adopted                   
  without any amendments, and problems came up requiring                       
  emergency closures, he asked Mr. Campbell if the ADF&G had                   
  the ability to deal with the situation.                                      
                                                                               
  MR. CAMPBELL responded that the ADF&G has a case by case                     
  permit review process, but no blanket ability to make                        
  emergency closures.                                                          
                                                                               
  Number 462                                                                   
                                                                               
  REPRESENTATIVE GREEN asked for clarification of whether the                  
  closures in question would be of waterways.                                  
                                                                               
  MR. CAMPBELL replied that the ADF&G does not have any power                  
  to do any blanket closures anywhere.  They would retain                      
  Title 16 authority to do case by case individual permit                      
  review, but under HB 213, he said, the power of the DNR's                    
  commissioner to make closures over 640 acres under Title 38                  
  would be removed.  He also pointed out that, although the                    
  executive order process might be inappropriate, the                          
  legislature did have the ability to establish in statute a                   
  procedure such as that suggested by the DNR in its                           
  amendment, where all mineral closures must be submitted to                   
  the legislature for review and approval.  He said the ADF&G                  
  amendment presented no legal problems.                                       
                                                                               
  Number 486                                                                   
                                                                               
  REPRESENTATIVE MULDER asked Mr. Campbell to clarify whether,                 
  if HB 213 was amended and passed, the ADF&G would still have                 
  the ability to do a case by case permit review and restrict                  
  activity.                                                                    
                                                                               
  MR. CAMPBELL pointed out that only a small percentage of                     
  Title 16 permits are denied, and those that are approved                     
  usually go through the review process in approximately three                 
  weeks.  The ADF&G, he said, can make recommendations to the                  
  permit applicant of steps that reduce the effect on habitat.                 
  He clarified, though, that the ADF&G cannot just say no                      
  activity will be permitted in a specific area.  If HB 213                    
  passed without the amendments, he said, the ADF&G would lose                 
  the ability it does have.                                                    
                                                                               
  REPRESENTATIVE FINKELSTEIN clarified that he saw HB 213 as                   
  being about whether areas are open or closed to mineral                      
  entry.  In that context, he said, the ADF&G has no power.                    
  The amendment, he said, guarantees the ADF&G retains its                     
  power under Title 16 to make recommendations.                                
                                                                               
  Number 528                                                                   
                                                                               
  MR. CAMPBELL pointed out another area of concern, which was                  
  the effect if HB 213 passed on those lands or rivers that                    
  have been closed by administrative order but had never been                  
  approved or disapproved by the legislature.  He raised the                   
  question of retroactivity.                                                   
                                                                               
  REPRESENTATIVE FINKELSTEIN asked if the committee would get                  
  a response to that question from the Division of Legal                       
  Services.  He said it was not clear on the face of it                        
  whether it would be retroactive.  He questioned whether some                 
  closures might be considered void if they did not meet the                   
  requirements of HB 213 in the future.                                        
                                                                               
  VICE CHAIRMAN HUDSON referred to Title 16.  He read the                      
  sections establishing guidelines for administrative land                     
  closures.  He noted that the ADF&G was seeking an amendment                  
  that would make reference to anadromous fish streams.  He                    
  said HB 213 could be amended so it would not preclude the                    
  legislature from taking action if it was thought the ADF&G                   
  was going too far.  He repeated Mr. Phelps' comment that the                 
  whole question came down to whether the authority for                        
  closures should rest with the DNR to take action and the                     
  legislature would have to reverse the action, or if the                      
  action should be initiated by the DNR subject to action by                   
  the legislature.                                                             
                                                                               
  Number 570                                                                   
                                                                               
  VICE CHAIRMAN HUDSON suggested that the committee stick with                 
  the concept of the sponsor of HB 213, and add language                       
  suggested in the amendments but excluding "waters catalogued                 
  under AS 16.05 and state land included in legislatively                      
  designated...critical habitat areas..."  The result, he                      
  explained, would be a statute with a direct nexus back to                    
  the protection and multiple use concepts in Title 16.  At                    
  the same time, he said, the whole thing would be subject to                  
  legislative action as opposed to the automatic opportunity                   
  for the department to close areas.                                           
                                                                               
  Number 590                                                                   
                                                                               
  REPRESENTATIVE DAVIES agreed that that suggestion began to                   
  get at the critical issue.  He said it appeared that the                     
  legislature has the ability to introduce a bill to make a                    
  mineral closure already, or to take action to open a closed                  
  area.  If HB 213 was passed, he said, it would take the                      
  administration out of the land management business and put                   
  the legislature in that business.  His principal concern, he                 
  said, was that the legislature is not in session year-round,                 
  and legislators are not land managers.  He questioned                        
  whether this was the correct process to have in place.  He                   
  noted that in issues of critical timeliness, when the                        
  legislature was not in session, the result could be that the                 
  federal government could come in and close down much larger                  
  sections of land.                                                            
                                                                               
  REPRESENTATIVE DAVIES also commented that the DNR and the                    
  ADF&G are not separate from the people, but rather are those                 
  hired to manage land under an owner-state concept.  He said                  
  that HB 213 seems to tie the hands of the land managers too                  
  much, and that while it is important to send the message                     
  that the legislature does not want unnecessary land                          
  closures, it was also important to allow the departments the                 
  ability to make timely decisions and then submit them to the                 
  legislature for ratification.                                                
                                                                               
  Number 622                                                                   
                                                                               
  REPRESENTATIVE FINKELSTEIN referred to the ADF&G amendment                   
  to HB 213.  He said it was relatively simple although the                    
  implications are confusing.  He paraphrased the amendment,                   
  and said it simply said the ADF&G's power continues to close                 
  mineral claims on anadromous streambeds if the situation                     
  warrants it.  He called this a reasonable proposal.                          
  Regarding the legislatively designated areas, he noted the                   
  argument being made that the legislature had the opportunity                 
  to close those areas when they were created and decided not                  
  to.  He explained that the reason those areas were not                       
  closed was because the DNR had the power to close them                       
  administratively if the need arose.  Most of the areas are                   
  not closed, he said, because the areas are suitable for                      
  multiple-use activities.                                                     
                                                                               
  Number 646                                                                   
                                                                               
  REPRESENTATIVE MULDER reported that he did not share the                     
  concern about the legislature being able to manage lands,                    
  and said in his view the legislature is more representative                  
  of the people than the bureaucracy is.  He questioned                        
  whether there would be a provision in statute, if HB 213 was                 
  passed unamended, that allows flexibility for emergency                      
  situations to be addressed.                                                  
                                                                               
  MR. ELIM responded that he did not know of any such                          
  provision, which was the driving force for the DNR                           
  amendments.  He apologized for the choice of "executive                      
  order" in the amendment, and explained that it was now clear                 
  that it was not the appropriate process.  He reiterated that                 
  the amendment does meet the spirit of HB 213, but affords                    
  the flexibility to make it workable.  Regarding the term                     
  "contiguous," he said the current statute does not deal with                 
  mineral closing orders, but with multiple-use closures.  He                  
  disagreed with the cautions raised on "the danger of                         
  specificity" and argued instead that there was a danger of                   
  ambiguity if "contiguous" was omitted.                                       
                                                                               
  REPRESENTATIVE MULDER agreed that there had to be a                          
  provision for dealing with an emergency closure, and the                     
  problem was how to define an emergency.  He suggested HB 213                 
  include provisions for flexibility in an emergency situation                 
  with legislative review and approval to follow.                              
                                                                               
  REPRESENTATIVE GREEN responded to previous concerns raised                   
  by Representative Davies, and the empowerment of the DNR's                   
  Commissioner.  He recalled an incident when a previous                       
  commissioner made inappropriate decisions, and he stressed                   
  that provisions for checks and balances on the power of                      
  commissioners should be made.                                                
                                                                               
  TAPE 93-34, SIDE A                                                           
  Number 000                                                                   
                                                                               
  REPRESENTATIVE JEANNETTE JAMES agreed with the intent of HB
  213, and with the concept of the amendments.  She said she                   
  would agree with the concept of letting the legislature be                   
  the deciding group on mineral closures, with provisions for                  
  emergency closures subject to legislative review.  She                       
  remarked that she did not see why closures of anadromous                     
  streambeds should be different than any other closure.                       
                                                                               
  Number 038                                                                   
                                                                               
  MR. ELIM remarked on the rationale for the DNR's amendment                   
  that would have the closure decision made administratively                   
  subject to legislative approval, rather than having a                        
  closure initiated as a bill in the legislature.  He noted                    
  how difficult it is for a bill to make it through the                        
  legislature.  Imposing a deadline for review and approval                    
  would be more effective, he said, than waiting for a bill to                 
  make it through the legislative process.                                     
                                                                               
  Number 080                                                                   
                                                                               
  VICE CHAIRMAN HUDSON suggested that the amendment should                     
  indicate "designated critical habitat areas...and anadromous                 
  streams."  He said he had concluded that Title 16 seems to                   
  preclude the commissioner from arbitrarily opening a stream                  
  that has anadromous fish in it.  He said this would seem to                  
  make the amendment unnecessary.                                              
                                                                               
  MR. ELIM clarified the merger of the DNR and the ADF&G                       
  amendments.  He said HB 213 would require the DNR's                          
  commissioner, in areas of over 640 acres of a mineral                        
  closing order, for purposes of recreation or habitat, to                     
  come to the legislature for approval.  The ADF&G amendment,                  
  he explained, would carve out some of that group to be                       
  brought to the legislature and say it was exempted from the                  
  legislative review.  Those would be, he said, catalogued                     
  streams and legislatively designated areas.  In those                        
  instances, he said, the commissioner would maintain his                      
  authority to issue mineral closing orders and would not have                 
  to submit them to the legislature.                                           
                                                                               
  Number 139                                                                   
                                                                               
  REPRESENTATIVE FINKELSTEIN addressed Representative Hudson's                 
  previous comments on the ability of the ADF&G's commissioner                 
  to arbitrarily open streams.  The problem, he said, was that                 
  streams start out open, and could not be arbitrarily closed                  
  without an exemption.                                                        
                                                                               
  REPRESENTATIVE MULDER commented that there would be no                       
  ability to proactively make closures, only the opportunity                   
  to close an area after an application is made.                               
                                                                               
  MR. ELIM further explained that to issue a mineral closing                   
  order in legislatively designated areas, as HB 213 is                        
  drafted, would require the DNR to come before the                            
  legislature for approval if the reason was for recreation or                 
  habitat.  The ADF&G's proposal would exclude that subset of                  
  mineral closing orders from the requirement of legislative                   
  approval.                                                                    
                                                                               
  REPRESENTATIVE JAMES had no problem with adding anadromous                   
  streambeds, but did object to adding legislatively                           
  designated lands for recreational purposes.  She felt one of                 
  the purposes of HB 213 was to stop some of the land closures                 
  without legislative review.  If all the language in the                      
  ADF&G amendment were included, she said, it would negate the                 
  intent of the bill.                                                          
                                                                               
  CHAIRMAN WILLIAMS commented that the committee should decide                 
  which direction it wanted to go with HB 213, given the                       
  remaining questions regarding the amendments.                                
                                                                               
  VICE CHAIRMAN HUDSON noted that in reading the ADF&G                         
  amendment, it appeared to only cover legislatively                           
  designated state critical habitat areas, game refuges, and                   
  game sanctuaries, and not all legislatively designated areas                 
  in the state.                                                                
                                                                               
  REPRESENTATIVE DAVIES repeated his earlier suggestion that                   
  the amendments be refined by the Legal Services' attorneys                   
  and brought before the committee again in a form that                        
  integrates the various amendments.                                           
                                                                               
  REPRESENTATIVE CARNEY agreed.                                                
                                                                               
  Number 225                                                                   
                                                                               
  CHAIRMAN WILLIAMS told the committee that unless there were                  
  objections, the committee would do as Representative Davies                  
  suggested, and hopefully would have the revised amendments                   
  for consideration on Wednesday, March 24, 1993.                              
                                                                               
  ANNOUNCEMENTS                                                                
                                                                               
  CHAIRMAN WILLIAMS announced that the committee would hear                    
  HB 232 and HB 238 on Wednesday, March 24, 1993 at 8:00 a.m.                  
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  There being no further business to come before the House                     
  Resources Committee, Chairman Williams adjourned the meeting                 
  at 9:50 a.m.                                                                 

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