Legislature(1995 - 1996)

03/31/1995 08:11 AM House RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
               HOUSE RESOURCES STANDING COMMITTEE                              
                         March 31, 1995                                        
                           8:11 a.m.                                           
                                                                               
                                                                               
 MEMBERS PRESENT                                                               
                                                                               
 Representative Joe Green, Co-Chairman                                         
 Representative Bill Williams, Co-Chairman                                     
 Representative Scott Ogan, Vice Chairman                                      
 Representative John Davies                                                    
 Representative Pete Kott                                                      
                                                                               
 MEMBERS ABSENT                                                                
                                                                               
 Representative Alan Austerman                                                 
 Representative Ramona Barnes                                                  
 Representative Eileen MacLean                                                 
 Representative Irene Nicholia                                                 
                                                                               
 COMMITTEE CALENDAR                                                            
                                                                               
 *HR 7:     Opposing a proposed international convention                       
            classifying coal as a hazardous and noxious material.              
                                                                               
            MOVED HR 7 OUT OF COMMITTEE                                        
                                                                               
 *HB 225:   "An Act authorizing the commissioner of fish and game to           
            issue permits to possess, import, or export African                
            elephants; and providing for an effective date."                   
                                                                               
            MOVED CSHB 225(RES) OUT OF COMMITTEE                               
                                                                               
 HB 191:    "An Act relating to the management and disposal of state           
            land and resources; relating to certain remote parcel              
            and homestead entry land purchase contracts and patents;           
            and providing for an effective date."                              
                                                                               
            HEARD AND HELD                                                     
                                                                               
 (* First public hearing)                                                      
                                                                               
 WITNESS REGISTER                                                              
                                                                               
 NOEL LOWE, Legislative Assistant                                              
 Representative Jerry Sanders                                                  
 State Capitol, Room 414                                                       
 Juneau, AK   99801                                                            
 Phone:  465-4945                                                              
 POSITION STATEMENT:  Prime Sponsor HR 7                                       
                                                                               
 JOHN SIMS, Vice President of Marketing                                        
 Usibelli Coal Mine, Inc.                                                      
 122 First Avenue, Ste. 302                                                    
 Fairbanks, AK   99701                                                         
 Phone:  452-2625                                                              
 POSITION STATEMENT:  Supported HR 7                                           
                                                                               
 REPRESENTATIVE VIC KOHRING                                                    
 Alaska State Legislature                                                      
 State Capitol, Room 428                                                       
 Juneau, AK   99801                                                            
 Phone:  465-2186                                                              
 POSITION STATEMENT:  Prime Sponsor HB 225                                     
                                                                               
 KRISTIE LEAF, Legislative Assistant                                           
 Representative Vic Kohring                                                    
 State Capitol, Room 428                                                       
 Juneau, AK   99801                                                            
 Phone:  465-2186                                                              
 POSITION STATEMENT:  Answered questions regarding HB 225                      
                                                                               
 ROBERT HALL                                                                   
 P.O. Box 871986                                                               
 Wasilla, AK   99687                                                           
 Phone:  892-6555                                                              
 POSITION STATEMENT:  Supported HB 225                                         
                                                                               
 WAYNE REGELIN, Acting Director                                                
 Division of Wildlife Conservation                                             
 Alaska Department of Fish and Game                                            
 P.O. Box 25526                                                                
 Juneau, AK   99802                                                            
 Phone:  465-4190                                                              
 POSITION STATEMENT:  Supported HB 225                                         
                                                                               
 SARA FISHER, Legislative Assistant                                            
 Representative Gene Therriault                                                
 State Capitol, Room 421                                                       
 Juneau, AK   99801                                                            
 Phone:  465-4797                                                              
 POSITION STATEMENT:  Prime Sponsor HB 191                                     
                                                                               
 RON SWANSON, Director                                                         
 Division of Land                                                              
 Department of Natural Resources                                               
 3601 C Street, Suite 1122                                                     
 Anchorage, AK   99503                                                         
 Phone:  762-2692                                                              
 POSITION STATEMENT:  Answered questions regarding HB 191                      
                                                                               
 JERRY LUCKHAUPT, Legislative Counsel                                          
 Legislative Legal Services                                                    
 Legislative Affairs Agency                                                    
 130 Seward Street, Suite 400                                                  
 Juneau, AK   99801                                                            
 Phone:  465-2450                                                              
 POSITION STATEMENT:  Answered questions regarding HB 191                      
                                                                               
 PREVIOUS ACTION                                                               
                                                                              
 BILL:  HR   7                                                                
 SHORT TITLE: OPPOSE COAL AS HAZARDOUS/NOXIOUS SUBSTNCE                        
 SPONSOR(S): REPRESENTATIVE(S) SANDERS,Bunde                                   
                                                                               
 JRN-DATE     JRN-PG               ACTION                                      
 03/15/95       740    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 03/15/95       740    (H)   RESOURCES                                         
 03/31/95              (H)   RES AT 08:00 AM CAPITOL 124                       
                                                                              
 BILL:  HB 225                                                                
 SHORT TITLE: ELEPHANT PERMIT                                                  
 SPONSOR(S): REPRESENTATIVE(S) KOHRING BY REQUEST,Barnes,Willis                
                                                                               
 JRN-DATE     JRN-PG               ACTION                                      
 03/03/95       564    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 03/03/95       565    (H)   STATE AFFAIRS, RESOURCES                          
 03/10/95       713    (H)   COSPONSOR(S): WILLIS                              
 03/17/95       791    (H)   STA REFERRAL WAIVED                               
 03/31/95              (H)   RES AT 08:00 AM CAPITOL 124                       
                                                                              
 BILL:  HB 191                                                                
 SHORT TITLE: MANAGEMENT OF STATE LAND AND RESOURCES                           
 SPONSOR(S): REPRESENTATIVE(S) THERRIAULT                                      
                                                                               
 JRN-DATE     JRN-PG               ACTION                                      
 02/22/95       448    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 02/22/95       448    (H)   RESOURCES, FINANCE                                
 03/15/95       741    (H)   SPONSOR SUBSTITUTE INTRODUCED-                    
                             REFERRALS                                         
 03/15/95       741    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 03/15/95       741    (H)   RESOURCES, FINANCE                                
 03/22/95              (H)   RES AT 08:00 AM CAPITOL 124                       
 03/22/95              (H)   MINUTE(RES)                                       
 03/29/95              (H)   RES AT 08:00 AM CAPITOL 124                       
 03/29/95              (H)   MINUTE(RES)                                       
 03/31/95              (H)   RES AT 08:00 AM CAPITOL 124                       
                                                                               
 ACTION NARRATIVE                                                              
                                                                               
 TAPE 95-44, SIDE A                                                            
 Number 000                                                                    
                                                                               
 The House Resources Committee was called to order by Co-Chairman              
 Green at 8:11 a.m.  Members present at the call to order were                 
 Representatives Green, Williams, Ogan, and Davies.  Members absent            
 were Representatives Austerman, Barnes, Kott, MacLean, and                    
 Nicholia.                                                                     
                                                                               
 CO-CHAIRMAN JOE GREEN announced the committee will hear HR 7, due             
 to a witness needing to leave, hear HB 225, go back to HR 7 and               
 then finish with HB 191.                                                      
 HRES - 03/31/95                                                               
 HR 7 - OPPOSE COAL AS HAZARDOUS/NOXIOUS SUBSTANCE                           
                                                                               
 NOEL LOWE, LEGISLATIVE ASSISTANT, REPRESENTATIVE JERRY SANDERS,               
 PRIME SPONSOR, stated if there are no immediate questions for him,            
 he would like to go to teleconference since Mr. Sims has to leave             
 shortly.                                                                      
                                                                               
 JOHN SIMS, VICE PRESIDENT OF MARKETING, USIBELLI COAL MINE, INC.,             
 testified via teleconference and stated he is also a member of the            
 Board of Directors of the U.S. Coal Exporters Association.  He                
 expressed support for HR 7.  He said HR 7 pertains to an issue                
 pending with the International Maritime Organization (IMO) which              
 seeks to include coal as a hazardous and noxious material in the              
 Hazardous and Noxious Substance (HNS) Convention, which has treaty            
 status.  He told committee members the U.S. coal industry,                    
 including the Alaska Coal Association and Usibelli Coal Mine, are             
 strongly opposed to the inclusion of coal in the HNS Convention and           
 the reasons are compelling.                                                   
                                                                               
 MR. SIMS said the first reason is the IMO HNS Convention on the               
 Prevention of Pollution from Ships does not classify coal as a                
 hazardous material subject to that particular treaty.  Second, the            
 IMO HNS Convention for the Safety of Life at Sea does not list coal           
 as a hazardous material.  Third, coal is excluded from the                    
 International Maritime Dangerous Goods Code.  Fourth, the U.S.                
 Coast Guard does not list coal in its schedule of hazardous                   
 maritime pollutants as published in the Federal Register of                   
 November 5, 1992.  He stated there is no evidence that coal has               
 created hazardous situations or pollution in the maritime                     
 environment and along coast lines.                                            
                                                                               
 MR. SIMS stressed the message is quite clear--do not fix something            
 which does not need fixing.  To forge ahead and ignore that advice            
 would be detrimental to the coal industry and unwarranted.  He                
 stated in passing HR 7, the legislature will be sending a strong              
 message for the coal industry and the U.S. (indiscernible)                    
 currently involved in drafting the U.S. position and to the                   
 treaties.  He said excluding coal is the ideal objective.  He                 
 pointed out if eventually a hazardous and noxious convention                  
 emerges and comes before the U.S. Senate for ratification, Usibelli           
 would continue to urge the U.S. Senate to reject such a treaty.               
                                                                               
 Number 107                                                                    
                                                                               
 MR. SIMS stated in regard to the current status of agencies within            
 the U.S. Administration which are involved in the framing of the              
 U.S. position, the opinions seem to be divided.  He said the                  
 Department of Justice, the U.S. Coast Guard, and the U.S. State               
 Department are inclined to favor some form of inclusion of coal in            
 the treaty.  The U.S. Department of Commerce, the Department of               
 Energy, and the Maritime Administration within the Department of              
 Transportation favor exclusion of coal.  He noted that reportedly,            
 the U.S. Trade Office also favors exclusion of coal.  He reiterated           
 that the official U.S. position is currently being formulated.                
 Therefore, the legislature's action through HR 7 could help sway              
 the outcome of that position.  He urged committee members to pass             
 HR 7.                                                                         
                                                                               
 CO-CHAIRMAN GREEN noted that Alaska's coal is good because its only           
 real problem is water content and in some cases, high ash.  He                
 noted Alaska's coal is extremely low sulphur.  He wondered if HR 7            
 will pick up a lot of extra baggage because of some of the high               
 sulphur coal produced in other parts of the country, which is                 
 ultimately shipped through the Maritime Service.  He asked if there           
 was any merit in trying to exclude Alaska coal only or coals of               
 that quality or is this a matter of all or nothing.                           
                                                                               
 MR. SIMS replied it is a matter of all or nothing.  He said even              
 with the more elevated concentrations of sulphur, the potential for           
 slowly leaking sulphur or sulfuric acid into a maritime environment           
 is minimal.  He stated Representative Green makes a good                      
 observation that Alaska's coal is significantly more benign than              
 others.  He pointed out the Cook Inlet has a high concentration of            
 coal in its sediments.                                                        
                                                                               
 CO-CHAIRMAN GREEN stated the committee would come back to HR 7.               
                                                                               
 HRES - 03/31/95                                                               
 HB 225 - ELEPHANT PERMIT                                                   
                                                                              
 Number 200                                                                    
                                                                               
 REPRESENTATIVE VIC KOHRING, PRIME SPONSOR, stated HB 225 is the               
 Moxie the elephant bill.  He said Moxie is an elephant who resides            
 in the Palmer area.  A resolution was passed by the legislature               
 last year in support of Moxie and the predicament he is in.  He               
 told committee members Moxie's predicament is he has a temporary              
 educational permit which has allowed him to stay in Alaska but it             
 is only temporary.  He noted that Moxie has been given subsequent             
 permits over time but now is under his last permit.  If a permanent           
 solution is not found, Moxie will have to leave the state this                
 summer.                                                                       
                                                                               
 (Representative KOTT joined the committee.)                                   
                                                                               
 REPRESENTATIVE KOHRING stated Moxie has broad support from all over           
 the state.  He noted that Moxie is owned by James Clements from               
 Palmer who has a business, and is trying to establish an Alaska               
 circus.  Moxie is an important part of that effort.  He said he               
 introduced HB 225 to provide a mechanism for a commercial                     
 exhibition permit for elephants as opposed to a temporary                     
 educational permit.  He pointed out that current law and                      
 regulations do not provide for a commercial exhibition permit of              
 elephants in Alaska allowing them to stay in the state on a year-             
 round basis.                                                                  
                                                                               
 REPRESENTATIVE KOHRING said HB 225 establishes a safe and                     
 reasonable method for permitting elephants to stay in Alaska as               
 long as the elephant meets the statutory requirements contained in            
 HB 225 and other criteria the Alaska Department of Fish and Game              
 (ADF&G) commissioner may establish.  He stated he and his staff               
 have worked closely with the ADF&G in developing the language in HB
 225.                                                                          
                                                                               
 Number 254                                                                    
                                                                               
 REPRESENTATIVE SCOTT OGAN asked if it would be acceptable to add an           
 amendment which would require a health permit for any elephant                
 coming into the state.                                                        
                                                                               
 REPRESENTATIVE KOHRING said he did not have a problem with that               
 suggestion.  He felt the issue should be discussed with a                     
 representative from the ADF&G.                                                
                                                                               
 REPRESENTATIVE JOHN DAVIES noted an amendment has been included in            
 committee members folders which deletes the word "African" in HB
 225.  He asked Representative Kohring if he supports the amendment.           
                                                                               
 REPRESENTATIVE KOHRING replied he has no problem with the                     
 amendment.                                                                    
                                                                               
 KRISTIE LEAF, LEGISLATIVE ASSISTANT, REPRESENTATIVE VIC KOHRING,              
 stated in regard to Representative Ogan's question, a health permit           
 is currently required for elephants coming into the state.  She               
 said when an elephant is coming into the state, the Department of             
 Environmental Conservation (DEC) is in touch with the veterinarian            
 in the state where the elephant is coming from and under the U.S.             
 Department of Agriculture Animal Health and Welfare Act, the                  
 elephants require a current health certificate.  She noted those              
 certificates are required currently when circus elephants come into           
 the state.  She explained HB 225 does not affect that requirement.            
 She pointed out that HB 225 does allow the ADF&G commissioner to              
 assess any additional health requirements.                                    
                                                                               
 CO-CHAIRMAN GREEN asked if HB 225 would allow elephants to come               
 from another country instead of another state, and if so, would a             
 health permit also be required.                                               
                                                                               
 MS. LEAF replied if an elephant is going to be imported, the                  
 elephant is required to have the import permit from the DEC and the           
 state veterinarian in Palmer has to certify the elephant has its              
 required papers.                                                              
                                                                               
 REPRESENTATIVE OGAN said he asked the question because disease was            
 an issue with the Board of Game.                                              
                                                                               
 Number 334                                                                    
                                                                               
 REPRESENTATIVE DAVIES asked why there is a limitation to commercial           
 exhibition on page 1, line 9.                                                 
                                                                               
 MS. LEAF responded currently the ADF&G issues an educational permit           
 and there is a system set up for that permit in regulation.                   
 Currently, zoo elephants, circus elephants, Moxie, etc., are being            
 permitted under the educational permit, when in fact that is not              
 their intended use.  She noted the Board of Game has also directed            
 the ADF&G to develop a temporary commercial permit system in                  
 regulation to better suit permits for circus elephants.  She added            
 the educational permit system would remain in place and HB 225                
 would add a commercial permit system.                                         
                                                                               
 REPRESENTATIVE DAVIES wondered what permit would be issued if a               
 person wanted to have an elephant as a private pet.                           
                                                                               
 MS. LEAF stated HB 225 does not affect the clean list whatsoever.             
 She said the language was proposed for exhibiting animals                     
 commercially to avoid a large number of elephants coming into the             
 state for any purpose.  She stated Representative Kohring would not           
 object to changing HB 225 to allow individuals wanting to have an             
 elephant and who meet the requirements to be able to have one.                
                                                                               
 Number 400                                                                    
                                                                               
 ROBERT HALL, WASILLA, testified via teleconference and expressed              
 support for HB 225.  He stated Moxie is an experienced performing             
 elephant who has performed in thousands of performances throughout            
 the U.S.  He said it has been very frustrating because Alaska is              
 one of few states in the U.S. that does not have provisions in                
 current statutes to allow Moxie to reside in the state permanently.           
 He noted what is attractive about Moxie is that in Alaska, children           
 do not get the opportunity to touch, feel, smell, and ride an                 
 African elephant.  He reiterated Moxie is popular throughout the              
 state.                                                                        
                                                                               
 MR. HALL said as a business owner, he has employed Moxie to give              
 rides to children and adults.  Last year, thousands of free                   
 elephant rides were given.  He stressed HB 225 is not just helping            
 one individual who owns the elephant.  He stated the time the                 
 legislature is taking to address the issue will help thousands of             
 people who enjoy elephants.  He noted the Board of Game, despite              
 tremendous support from the department, did not put elephants on              
 the clean list because the board did not want to set a precedent              
 that any exotic animal brought into the state would have to be                
 added to the clean list.                                                      
                                                                               
 WAYNE REGELIN, ACTING DIRECTOR, DIVISION OF WILDLIFE CONSERVATION,            
 ADF&G, said the ADF&G supports HB 225 and does not feel the bill              
 poses any risks to wildlife in Alaska.  He stated HB 225 will solve           
 a problem for the elephant which already resides in the state.                
 Without HB 225, the ADF&G does not have the type of permit                    
 necessary.                                                                    
                                                                               
 CO-CHAIRMAN GREEN noted there appears to be safeguards built into             
 HB 225 which take care of the humanity toward the animal.  He                 
 clarified the department is satisfied there are no health risks               
 involved.                                                                     
                                                                               
 MR. REGELIN replied yes.                                                      
                                                                               
 REPRESENTATIVE GREEN asked if there are any risks of disease to               
 other animals if an elephant escapes.                                         
                                                                               
 MR. REGELIN responded that is one of the issues he discussed with             
 elephant breeders in Florida where most elephants in the U.S. are,            
 and they do not feel there is a problem.  He stated Moxie has been            
 in captivity most of his life and has been tested numerous times.             
 He said Moxie is disease free.  He pointed out the chances of                 
 anyone wanting to bring an elephant to reside in the state                    
 permanently are slim.  However, there are federal and DEC laws                
 which require that any animal brought into the state be safe.                 
                                                                               
 REPRESENTATIVE PETE KOTT made a MOTION to AMEND HB 225 on page 1,             
 line 2:  delete the word "African"; page 1, line 5:  delete the               
 word "African"; and on page 1, line 7, delete the word "African".             
                                                                               
 REPRESENTATIVE KOTT said this amendment would make the bill all               
 inclusive to include Indian or Asian elephants.                               
                                                                               
 CO-CHAIRMAN GREEN stated it was his understanding there are many              
 more domesticated Asian elephants than African elephants.                     
                                                                               
 REPRESENTATIVE GREEN asked if there were any objections to the                
 motion.  Hearing none, the MOTION PASSED.                                     
                                                                               
 REPRESENTATIVE OGAN made a MOTION to MOVE CSHB 225(RES) with                  
 attached zero fiscal note out of committee with individual                    
 recommendations.                                                              
                                                                               
 CO-CHAIRMAN GREEN asked if there were any objections to the motion.           
 Hearing none, the MOTION PASSED.                                              
                                                                               
 CO-CHAIRMAN GREEN announced the committee would go back to HR 7.              
                                                                               
 HRES - 03/31/95                                                               
 HR 7 - OPPOSE COAL AS HAZARDOUS/NOXIOUS SUBSTANCE                           
                                                                               
 Number 500                                                                    
                                                                               
 CO-CHAIRMAN GREEN recalled his question to Mr. Sims regarding                 
 possible baggage to HR 7 because it would also be addressing poor             
 quality coal.  He wondered if Mr. Lowe thought there would be a               
 problem.                                                                      
                                                                               
 MR. LOWE replied he did not.  He stated he would explain the tier             
 structure the proposed IMO treaty would insert coal into.  He                 
 thought with that explanation the committee would better understand           
 why that is not a concern for any type of coal.  He said the                  
 current structure was fashioned after an oil insurance-type of                
 structure which is a post-disaster payment scheme.  Currently, the            
 insurance of materials shipped overseas fall into two tiers.  The             
 first tier is insurance carried by the ship owner or pilot which is           
 up to a preset, at this time, undetermined level.  The second tier            
 is the tier which would be paid in an event or catastrophe were to            
 exceed the first tier.                                                        
                                                                               
 MR. LOWE said the second tier is made up of two levels which                  
 include solid liquids or gases defined as noxious.  The second                
 level within the second tier contains coal, wood chips, ammonium              
 nitrate, and other less or nontoxic, nonhazardous materials.  He              
 explained currently the first section within the second tier                  
 contributes to a fund that would kick in if a catastrophe exceeded            
 the first tier.  The second level within the second tier is                   
 designed to kick in if, and only if, one of the substances within             
 that second group were to be involved in an incident which exceeded           
 the first tier level of insurance coverage.                                   
                                                                               
 MR. LOWE pointed out there has never been, in the history of the              
 transport of coal, an incident which exceeded the first tier level            
 of insurance.                                                                 
                                                                               
 Number 556                                                                    
                                                                               
 CO-CHAIRMAN GREEN asked if the tiers are based on the materials               
 likely to get into the environment rather than a dollar amount.               
                                                                               
 MR. LOWE replied that is correct.  He said the tier structure is              
 post-incident insurance mechanisms to cover personal loss, property           
 loss, or damage to the environment.  He stated within the second              
 tier, there are two sections and items are classified either in the           
 first or second section based on their estimated potential damage             
 and hazardous qualities.  He explained the opposition brought                 
 forward in HR 7 is to the inclusion of coal within the second                 
 section of the second tier.                                                   
                                                                               
 REPRESENTATIVE DAVIES clarified coal would be included in the first           
 structure of the second tier.                                                 
                                                                               
 MR. LOWE said within the second tier there are two levels.  Coal is           
 being proposed to be included in the second level of the second               
 tier.                                                                         
                                                                               
 CO-CHAIRMAN GREEN asked what part of the second level.                        
                                                                               
 MR. LOWE replied there is only one second level.  He reiterated               
 there are two tiers of insurance.  The first tier is the liability            
 of the ship owner.  The ship owners are required to carry a certain           
 amount of liability which as of yet has not been determined.  The             
 second tier includes all of the goods being transported and they              
 are subdivided within the second tier into a group A and group B.             
 He stated group A are more hazardous materials and group B are                
 solid materials which are less toxic, less hazardous, less noxious.           
 He noted it is proposed that coal be included in the IMO treaty to            
 be in group B of the second tier.                                             
                                                                               
 MR. LOWE reiterated there has never been, in the history of the               
 transport of coal, an incident that exceeded the first tier.  He              
 felt there is no insurance-wise need at this point for coal to be             
 included.  He said the inclusion of coal is based on the HNS                  
 Hazardous Materials Commission's recommendations.  For example, if            
 there was an incident involving ammonium nitrate, which is in group           
 B of the second tier, instantly all members of group B would be               
 determined active and from that date forward, they would be                   
 required to contribute to a fund.  Their contribution to the fund             
 would be determined on a tonnage basis.                                       
                                                                               
 MR. LOWE said should any future incidents happen, monies from that            
 fund would be applied, in excess of the first tier, when the ship             
 transporter's insurance did not cover it.  He stated anything over            
 tier one would be paid out of the fund.  He noted it is believed              
 that the purpose of the inclusion of coal in group B of the second            
 tier is because of its large tonnage quantities.  He pointed out              
 this is somewhat of a tonnage-based tax on the coal industry                  
 because of the large amount of coal shipped.                                  
                                                                               
 Number 600                                                                    
                                                                               
 REPRESENTATIVE DAVIES clarified once the requirement to contribute            
 to the fund is activated, then the requirement is in place forever.           
                                                                               
 MR. LOWE replied that is correct.                                             
                                                                               
 REPRESENTATIVE DAVIES clarified the fund would not end no matter              
 how much money is generated by the fund.                                      
                                                                               
 MR. LOWE said there is no mechanism to shut off contributions to              
 the fund if a certain monetary level is reached.  He noted the                
 contribution to the fund is a per tonnage rate every time the coal            
 is handled.  He stated when the U.S. Department of Energy became              
 aware of this by Senator Stevens, they concluded there is no                  
 necessity to include coal as a hazardous and noxious material in              
 group B of the second tier of the IMO treaty.                                 
                                                                               
 CO-CHAIRMAN GREEN felt that while support would be gained from all            
 the coal producing states, there would also be a drag down by the             
 negativism of the high sulphur and other impurities in coals.  He             
 thought allowing the country to know that Alaska's coal is                    
 nonpolluting as opposed to some that might be would be a good idea.           
                                                                               
 MR. LOWE said the IMO's Marine Environment Pollution Committee                
 asked the GESAMP EHS Group (he did not know what the letters stood            
 for) to evaluate the potential marine pollution hazards from the              
 discharge of solid bulk cargoes in July 1992 and they evaluated the           
 hazardous properties of coal.  He stated coal was given a zero                
 rating for bioaccumulation and tainting, hazard to human health               
 (oral intake and skin contact) and for reduction in amenities.  It            
 was noted:  Coal dust may cause mild skin irritation if it comes in           
 contact with the skin; coal, with regard to damaging living                   
 resources, is not hazardous but it may blanket the bottom of the              
 sea; and coal, with regard to the reduction of amenities, may be              
 slightly objectionable but will not interfere with the use of                 
 beaches.                                                                      
                                                                               
 MR. LOWE stated the basic determination for the inclusion of coal             
 is the large tonnage amount, the personal injury potential in                 
 loading and off-loading that quantity of coal and the potential for           
 a fire to be started on a ship.  He noted it is not that the                  
 sulphur content of coal makes it a noxious mineral, but rather coal           
 in bulk.                                                                      
                                                                               
 CO-CHAIRMAN GREEN noted coal dust, because of rapid oxidation,                
 could explode.                                                                
                                                                               
 REPRESENTATIVE OGAN asked if all countries in the world who ship              
 coal would be subject to the treaty.  He also asked where the money           
 contributed goes.                                                             
                                                                               
 MR. LOWE replied all countries who transport coal would be                    
 required, under the IMO treaty, to contribute to the fund which               
 would begin in the event a catastrophe exceeded the first tier of             
 the liability.  He stated he did not know what bank the money would           
 be accumulating in.  He said the money would go into an insurance             
 fund that would be utilized if a substance within group B of the              
 second tier was responsible for the accident that exceeded the                
 first tier.  He noted ammonium nitrate is very explosive and does             
 present a hazard.  Therefore, if ammonium nitrate was involved in             
 an accident that exceeded the first tier, coal would automatically,           
 because of its large tonnage, be taxed every time it is loaded and            
 unloaded to pay for future incidents that will most likely not be             
 as a result of coal but another substance being transported.                  
                                                                               
 MR. LOWE stressed there is international opposition to the IMO                
 treaty.  He stated there has been a couple of ideas proposed.  One            
 proposal would be to set up a separate appendix for nothing but               
 coal and make that appendix have a zero rating until coal causes an           
 accident exceeding the first tier.  He noted coal producing                   
 countries, the Alaska Coal Association, and the Coal Export                   
 Association opposed that proposal because insurance rates for coal            
 would go up due to coal's inclusion in a hazardous and noxious                
 treaty.   He said the cost of coal around the world is going to               
 rise and the ability to market Alaska coal will be hindered.                  
                                                                               
 Number 682                                                                    
                                                                               
 REPRESENTATIVE OGAN stated it would be interesting to know who the            
 players are in the proposal to include coal in the treaty and what            
 their motivation is.                                                          
                                                                               
 TAPE 95-44, SIDE B                                                            
 Number 000                                                                    
                                                                               
 MR. LOWE indicated the oil industry does support the treaty as it             
 currently is written.                                                         
                                                                               
 REPRESENTATIVE DAVIES recalled Mr. Lowe had stated the tier one               
 insurance is paid by the ship owners, so presumably the coal                  
 industry contributes to the maintenance of that insurance through             
 the tonnage paid to ship owners.                                              
                                                                               
 MR. LOWE said that is correct.                                                
                                                                               
 REPRESENTATIVE DAVIES said one might draw the conclusion that the             
 industry is paying its fair share of the insurance currently.                 
                                                                               
 MR. LOWE agreed.  He felt all people using carriers are                       
 contributing.  He noted there is no other organization, worldwide,            
 that classifies coal as noxious and hazardous.  He said this will             
 be the first time ever that coal has been classified as noxious and           
 hazardous.                                                                    
                                                                               
 CO-CHAIRMAN BILL WILLIAMS made a MOTION to MOVE HR 7 out of                   
 committee with individual recommendations.                                    
                                                                               
 CO-CHAIRMAN GREEN asked if there were any objections.  Hearing                
 none, the MOTION PASSED.                                                      
                                                                               
 HRES - 03/31/95                                                               
 HB 191 - MANAGEMENT OF STATE LAND AND RESOURCES                             
                                                                               
 CO-CHAIRMAN GREEN stated the committee would be using the committee           
 substitute (CS) of the sponsor substitute, version F of HB 191 as             
 its working draft.                                                            
                                                                               
 SARA FISHER, LEGISLATIVE ASSISTANT, REPRESENTATIVE GENE THERRIAULT,           
 PRIME SPONSOR, stated she would review the changes from the sponsor           
 substitute of HB 191 contained in the work draft CS of HB 191,                
 version F.  She said Section 1 reduces the purchaser's expectation            
 of no further disposals or development in the area.  This section             
 clarifies that when the department determines separation of                   
 residences, they consider the availability of timber, firewood, and           
 water resources but does not imply a person has exclusive use of              
 these resources.                                                              
                                                                               
 Number 199                                                                    
                                                                               
 MS. FISHER stated Sections 2-5 are the same as the sponsor                    
 substitute.  She said Section 6 is a technical amendment and is               
 similar to Section 5 but removes references to staking.  She                  
 explained Section 8 is a technical change needed as a result of               
 Sections 22 and 23.  Section 20 is a new section which allows                 
 agricultural land to be sold at true market value by making                   
 preference right to the adjacent agriculture land owners at the               
 discretion of the department.  She noted that Mr. Swanson had                 
 pointed out earlier that mandating the preference right tends to              
 depress the competition or eliminate the competition altogether,              
 while unaffected parcels are bid up past appraised value.                     
                                                                               
 MS. FISHER stated Sections 22-23 amend the remote cabin permit                
 program.  She said these permits have never been offered because of           
 the cost to implement the program.  These changes will allow the              
 department to provide for the sale or lease of state land for                 
 remote recreational cabin sites.  She explained sales must be at              
 fair market value and the purchaser must reimburse the state for              
 appraisal, survey, and platting costs.  She pointed out this change           
 provides that the term of a lease permit is no more than five                 
 years, which may be renewed for one additional five year period.              
 During the term of the lease, the permittee may purchase the site             
 by paying fair market value for the site.                                     
                                                                               
 Number 236                                                                    
                                                                               
 MS. FISHER said Section 26 is a new section intended to clarify               
 that a person holding a shore fisheries permit has the right to               
 renew that permit.  She stated Sections 43 and 44 are technical               
 changes.  She told committee members Sections 45 and 46 are new               
 sections that amend the homestead entry program.  These changes               
 allow for a person to reside on the homestead land and reimburse              
 the state for survey and platting, or within five years, pay the              
 state the fair market value of the homestead at the time of patent            
 and reimburse the state for the survey.  She noted this change                
 removes the staking and brushing requirements, and references to              
 "habitable, permanent dwelling."                                              
                                                                               
 MS. FISHER stated Section 48 is a new section which clarifies the             
 state has no obligation to provide services to disposals of state             
 land, and a disposal does not by itself limit further disposals.              
 She noted Section 49 contains repealers.                                      
                                                                               
 Number 263                                                                    
                                                                               
 REPRESENTATIVE DAVIES noted the language in Section 2 in the                  
 sponsor substitute referring to land banks is being changed and the           
 work draft now calls it a land disposal program.  He felt the use             
 of the word "program" is inconsistent with the way the word is used           
 later on in the bill.  He thought it made more sense to use the               
 word "inventory."  He wondered if Mr. Swanson had any objections to           
 using the word "inventory" instead of "program" on page 2, lines 6            
 and 9.  He felt that word works better because it is a list of                
 objects as opposed to events.                                                 
                                                                               
 RON SWANSON, DIRECTOR, DIVISION OF LAND, DEPARTMENT OF NATURAL                
 RESOURCES (DNR), testified via teleconference and said he did not             
 object to the suggested change.                                               
                                                                               
 MS. FISHER stated if Mr. Swanson does not have a problem with those           
 changes, then the sponsor probably will not either.  She thought              
 the word "program" was used in order to conform with the planning             
 process the DNR has used for the past ten years.                              
                                                                               
 MR. SWANSON said Ms. Fisher's comments are correct.  The department           
 goes through the land planning process which creates the inventory.           
 Once the inventory has been developed, then the inventory goes into           
 the disposal program and actual disposal.  He stated while changing           
 the word "program" to "inventory" does not create any heartburn, he           
 really felt "program" would be the better word because the                    
 inventory had been created in the planning process already.                   
                                                                               
 Number 304                                                                    
                                                                               
 REPRESENTATIVE DAVIES thought it was confusing to talk about a list           
 of lands as a program.  He felt the word "program" means a                    
 prescription of things to do or a process.                                    
                                                                               
 CO-CHAIRMAN GREEN wondered if there was any merit to having the               
 words inventory/program or does that further confuse the issue.               
                                                                               
 MR. SWANSON thought the words "inventory and/or program" might be             
 better.                                                                       
                                                                               
 REPRESENTATIVE DAVIES stated page 7, lines 6-8, in the work draft             
 CS of HB 191, version F, pertains to the disposal of land and where           
 the auction sale should be located.  He said he understood the                
 arguments as to why the commissioner should have some discretion as           
 to where the disposals are held.  However, he felt as a matter of             
 policy, the legislature should be suggesting to the commissioner              
 that wherever it is practicable, the auction should be in a                   
 community near where the land is being sold or disposed of.                   
                                                                               
 REPRESENTATIVE DAVIES expressed concern that by changing the word             
 "shall" to "may" on line 7, that policy intent is lost.  He felt              
 the same discretion on the part of the commissioner could be                  
 effectuated while leaving the policy intent in place by keeping the           
 word "shall" and then on line 8, inserting the words "unless the              
 commissioner issues a written finding that it is impractical."  He            
 felt that change would allow the commissioner to find in certain              
 cases that it is not practical to have an auction in an area close            
 by but would leave the general intent to hold the auctions close to           
 the actual land being sold.                                                   
                                                                               
 Number 356                                                                    
                                                                               
 MR. SWANSON stated the history of this section is that previously             
 it was required that the applicant and the department appear, in              
 person, in the location where the land was going to be disposed of.           
 He said the Superior Court ruled that requirement was                         
 unconstitutional.  He explained the idea behind this section is why           
 make the state spend a lot of money to appear in a particular                 
 community if the applicant is not required to be there for all                
 types of disposals.  He pointed out the department would certainly            
 hold an outcry auction in the community where the land is being               
 sold, but he saw no point in the state appearing if the disposal is           
 going to be a sealed bid or a lottery and the applicant is not                
 required to be there.                                                         
                                                                               
 REPRESENTATIVE DAVIES noted he knows it is the department's intent            
 to hold outcry auctions in the communities.  His concern is the               
 language contained in Section 14 does not explicitly suggest that             
 intent.                                                                       
                                                                               
 MR. SWANSON suggested adding that only outcry auctions be held in             
 the location where the land is to be sold.                                    
                                                                               
 CO-CHAIRMAN GREEN wondered how many times auctions get submissions            
 from people not in attendance.                                                
                                                                               
 MR. SWANSON stated outcry auctions are normally only held for                 
 agricultural sales and usually the person or a representative of              
 the person is always present.                                                 
                                                                               
 CO-CHAIRMAN GREEN asked if the word "may" would cause the                     
 department to not do business as usual except for streamlining it.            
                                                                               
 MR. SWANSON replied the word "shall" is currently in the statute              
 and the department is required to appear.  He said the word "may"             
 is much better for the department as it streamlines it and will               
 provide a cost saving.                                                        
                                                                               
 REPRESENTATIVE DAVIES asked how the disposal of land is handled for           
 homesites.                                                                    
                                                                               
 MR. SWANSON responded homesites are always done by lottery.                   
                                                                               
 REPRESENTATIVE DAVIES questioned how the public becomes aware of              
 homesite disposals.                                                           
                                                                               
 MR. SWANSON replied the homesite disposals are advertised in all              
 major newspapers in the state at least once, sometimes up to four             
 times.  The department also has a land disposal sale brochure which           
 is available to the public through department offices and some                
 libraries across the state.  He said the department also uses                 
 public service announcements on radio and television where                    
 possible.                                                                     
                                                                               
 REPRESENTATIVE DAVIES asked how does a person enter the lottery.              
                                                                               
 MR. SWANSON stated within the sale brochure there is an application           
 which the person can mail in, along with the $10 entry fee.                   
                                                                               
 Number 412                                                                    
                                                                               
 REPRESENTATIVE DAVIES asked Mr. Swanson how he would feel about               
 changing lines 6-8 to read, "An outcry auction sale shall be held             
 in a community that is near the land to be sold or disposed of."              
                                                                               
 MR. SWANSON stated that language is fine.  He said that is                    
 certainly what the department would do.                                       
                                                                               
 REPRESENTATIVE DAVIES made a MOTION to AMEND the work draft CS of             
 HB 191, version F, on page 7, lines 6-8, delete the current                   
 sentence and rewrite it to read, "An outcry auction sale shall be             
 held in a community that is near the land to be sold or disposed              
 of."                                                                          
                                                                               
 CO-CHAIRMAN GREEN announced there is no quorum present.                       
                                                                               
 REPRESENTATIVE DAVIES stated on page 9, lines 13-15, of the work              
 draft CS of HB 191, version F, it says "If more than one Alaska               
 resident qualifies for a first option under this section,                     
 eligibility for the first option shall be determined by lot and the           
 option must be exercised on the conclusion of the public auction."            
 He asked in that instance, what happens if the person who wins the            
 lot does not choose to exercise it.                                           
                                                                               
 MR. SWANSON replied the next person in line would assume the role.            
                                                                               
 Number 469                                                                    
                                                                               
 REPRESENTATIVE DAVIES said in Section 21, page 9, the definition of           
 adjacent says, "a tract of land has a common boundary or corner to            
 presently held land or is separated from the presently held land              
 only by a physical barrier such as a road or stream."  He stated              
 there is also another configuration of land where the boundaries              
 could be touching but not satisfy this definition.  He told                   
 committee members to imagine two squares where one corner of one              
 square is touching the center of the side of the other square.  He            
 noted they would be touching each other but would not have a corner           
 in common nor would they have a line segment in common.  He pointed           
 out he has seen land actually divided up that way.                            
                                                                               
 REPRESENTATIVE DAVIES suggested the problem with the definition               
 could be fixed by changing lines 21-23, on page 9, of the work                
 draft CS of HB 191, version F, to read "adjacent" means that a                
 tract of land has at least one common boundary point with presently           
 held land or is separated from the presently held land only by a              
 physical barrier such as a road or stream."                                   
                                                                               
 MR. SWANSON stated that language is fine.  He added that he did not           
 read the current language as common boundary or common corner but             
 rather read it to say common boundary or corner touching.                     
                                                                               
 CO-CHAIRMAN GREEN said if everyone could picture a square with a              
 diamond sitting on top of it--adjacent at the north boundary but              
 not at the corner.                                                            
                                                                               
 REPRESENTATIVE DAVIES asked Mr. Swanson if he has any problem with            
 the suggested change in language.                                             
                                                                               
 MR. SWANSON replied no.                                                       
                                                                               
 REPRESENTATIVE DAVIES referring to line 23, page 9, asked if there            
 is going to be a problem if there is a stream paralleled by a road.           
                                                                               
 MR. SWANSON responded no.                                                     
                                                                               
 Number 515                                                                    
                                                                               
 REPRESENTATIVE DAVIES asked on page 10, line 6, of the work draft             
 CS, version F, why the words "lease permit" is used.  He wondered             
 if the word "permit" could be eliminated.                                     
                                                                               
 MR. SWANSON replied yes.  He said there must have been an error in            
 the rewrite.                                                                  
                                                                               
 REPRESENTATIVE DAVIES thought the language should say "cabin site             
 lease" throughout Section 23.  He said wherever the language says             
 "permit", it should say "lease" and where it says "permittee", it             
 should say "lessee".  He wondered if Mr. Swanson had any problem              
 with those suggested changes.                                                 
                                                                               
 MR. SWANSON said no.  He stated the section had just been drafted             
 the day previous and some technical changes still need to be made.            
                                                                               
 REPRESENTATIVE DAVIES said his next question was in regard to page            
 10, line 21, of the work draft CS of HB 191, where it gives the               
 director the discretion to invite applications.  He wondered what             
 assurance is there a public notice will be given.                             
                                                                               
 MR. SWANSON replied the language refers to a disposal of land.                
 Therefore, the state Constitution requires public notice.                     
                                                                               
 REPRESENTATIVE DAVIES asked what the purpose is of line 21, on page           
 10, changing the word "shall" to "may."  He thought it might be               
 redundant since the department does that anyway.  He thought the              
 line was there to perhaps set up the next sentence.                           
                                                                               
 MR. SWANSON stated the department advertises a given area sale                
 which may be open to shore fishery leases.  Within that given area,           
 the department does not necessarily say how many leases will be               
 issued.  Therefore, the department is trying to make the language             
 discretionary.  He said the department will tell the public that              
 the department will be issuing leases or a lease within a given               
 area but only certain people can qualify.  He wondered why the                
 department would want to advertise for applications or invite                 
 applications if people do not qualify.                                        
                                                                               
 REPRESENTATIVE DAVIES reiterated he does not understand how the               
 discretionary invitation works.                                               
                                                                               
 CO-CHAIRMAN GREEN clarified if in fishery site A, a preference is             
 given to the existing permittee or lessee and if the department had           
 to go to the expense of publicly inviting applicants, yet fishery             
 site A is still going to have a preference, the question becomes is           
 there any merit to continuing the process just to establish a fair            
 market value.                                                                 
                                                                               
 MR. SWANSON said that is correct.                                             
                                                                               
 CO-CHAIRMAN GREEN said if there is no other person wanting the                
 permit or lease or if there are others who want it but the existing           
 permittee or lessee wants it, would the department under a "may" go           
 ahead and publicly invite to try and get a fair market value                  
 established or would the department have other means to determine             
 what the fair market value is.                                                
                                                                               
 MR. SWANSON replied the department does not currently use a fair              
 market value for shore fishery leases.  The department can only get           
 what it costs to administer the program.  He said the change on               
 line 21, page 10, will allow the department to have the discretion            
 to get fair market value.  He was not sure how the department would           
 do that, but added there are several options.                                 
                                                                               
 CO-CHAIRMAN GREEN clarified having the word "shall" in the language           
 would assist the department in establishing a fair market value or            
 since the lease or permit is going to the person who currently has            
 it anyway should the person want it, "may" still might be a                   
 preferable word to avoid an unnecessary notification to the public,           
 when none of the public is going to have a chance at the lease or             
 permit anyway, unless the owner does not want to come up with the             
 fair market value.                                                            
                                                                               
 MR. SWANSON said that is correct.                                             
                                                                               
 Number 610                                                                    
                                                                               
 REPRESENTATIVE DAVIES clarified the public invitation for                     
 applications, in some cases, is an additional step the department             
 would go through to establish the fair market value.                          
                                                                               
 MR. SWANSON replied that is correct and added that the department             
 may go through.                                                               
                                                                               
 REPRESENTATIVE DAVIES stated his next question is in regard to page           
 18, lines 14-17, of the work draft CS of HB 191, version F.  He               
 asked someone to explain the changes contained in the language.               
                                                                               
 TAPE 95-45, SIDE A                                                            
 Number 000                                                                    
                                                                               
 MS. FISHER replied Section 32 of the sponsor substitute clarifies             
 the department can allow livestock grazing, commercial berry                  
 picking or mushroom harvesting, and similar minimal-value                     
 consumptive uses by issuing permits, an authority the Department of           
 Law recently questioned.                                                      
                                                                               
 MR. SWANSON stated that is correct.  The Department of Law said if            
 a person removes a resource in any way, a lease has to be issued,             
 not a permit.  He said the language Representative Davies has asked           
 about allows the department to do some basic things under the                 
 permit process which are not so time consuming.  For example, after           
 a forest fire, mushrooms come up and people like to harvest them.             
 He explained because the mushrooms are harvested, the department              
 would have to issue a lease and by the time the lease is issued,              
 the mushrooms would be long gone.                                             
                                                                               
 REPRESENTATIVE DAVIES asked if all the repealers in Section 49 are            
 conforming to other things done in the bill and also questioned if            
 there is anything substantive in the repealers.                               
                                                                               
 MR. SWANSON stated the intent was to not do anything substantive              
 but just conform to everything else in the bill.                              
                                                                               
 Number 063                                                                    
                                                                               
 JERRY LUCKHAUPT, LEGISLATIVE COUNSEL, LEGISLATIVE LEGAL SERVICES,             
 LEGISLATIVE AFFAIRS AGENCY, stated Mr. Swanson is correct to a                
 certain extent.  He said many of the repealers are necessitated by            
 changes made in the bill.  He explained there are a few repealers             
 that work on their own which were requested by the department such            
 as the removal of the requirement for bonding.  He noted the                  
 repealers were all a part of the original bill.                               
                                                                               
 REPRESENTATIVE DAVIES asked if there are any other substantive                
 things in the repealers.                                                      
                                                                               
 MR. LUCKHAUPT replied AS 38.05.040 is the bonding requirement.  AS            
 38.05.035(e)(6)(F) removes the requirement for a written finding              
 before a public hearing related to a production license issued                
 under AS 38.05.207 which is a change necessitated by the repeal of            
 AS 38.05.027, which was necessitated by the oil and gas changes               
 made last year.  He said the AS 38.057 changes are reflected by               
 changes made to AS 38.05.057 in the bill.  The changes to AS                  
 38.05.855 and AS 38.05.856 are not necessarily reflected by things            
 going on in the bill but relate to the fact that AS 38.05.855 and             
 AS 38.05.856 are repeals of the aquatic farm sites program--the               
 identification program the commissioner must go through in the                
 tideland land use permits for aquatic farming.                                
                                                                               
 REPRESENTATIVE OGAN made a MOTION to ADOPT CSSSHB 191(RES), version           
 F.                                                                            
                                                                               
 CO-CHAIRMAN GREEN asked if there were any objections.  Hearing                
 none, the MOTION PASSED.                                                      
                                                                               
 Number 150                                                                    
                                                                               
 REPRESENTATIVE DAVIES noted for the record he still has concerns on           
 page 2 about the distinction between program and inventory.                   
                                                                               
 REPRESENTATIVE DAVIES made a MOTION to AMEND CSSSHB 191(RES) on               
 page 7, line 6, insert "outcry" after "An" and delete ", a".  On              
 line 7, page 7,  delete "lottery sale, or a disposal of land for              
 homesites may" and insert the word "shall".  He said lines 6-8                
 would now read, "An outcry auction sale shall be held in a                    
 community that is near the land to be sold or disposed of."                   
                                                                               
 MS. FISHER said the proposed amendment might pose a conflict with             
 Section 15.                                                                   
                                                                               
 MR. LUCKHAUPT stated an outcry auction is not defined anywhere in             
 statute.  Therefore, a term is going to be contained in the bill              
 which is not defined anywhere.  Secondly, in Section 15, sections             
 are being repealed which require the presence of bidders at auction           
 sales.  He thought maybe Mr. Swanson had an idea of how these two             
 sections could be put together to accomplish Representative Davies'           
 purpose.                                                                      
                                                                               
 MR. SWANSON said he did not have an idea how to accomplish                    
 Representative Davies' purpose.  He stated he understands his                 
 concerns.  He noted the department would do what he is suggesting             
 anyway, but he was not sure how to put that in statute.                       
                                                                               
 REPRESENTATIVE OGAN clarified that Section 15 is for sealed bids.             
                                                                               
 Number 206                                                                    
                                                                               
 MR. SWANSON replied the department does two different types of                
 auctions.  The majority of the auctions are sealed bids but                   
 occasionally the department does an outcry auction.                           
                                                                               
 REPRESENTATIVE OGAN asked if it is most cost effective to do a                
 sealed bid auction.                                                           
                                                                               
 MR. SWANSON responded yes.  He stated sealed bids are normally what           
 the department does.                                                          
                                                                               
 REPRESENTATIVE DAVIES WITHDREW his MOTION.                                    
                                                                               
 REPRESENTATIVE DAVIES made a MOTION to AMEND CSSSHB 191(RES) on               
 page 9, line 21, delete "a" and insert "at least one";  delete "or"           
 and insert "point".  On line 22, page 9, delete "corner to" and               
 insert "with".  He said the line would read "(2)  "adjacent" means            
 that a tract of land has at least one common boundary point with              
 presently held land or is separated from the presently held land              
 only by a physical barrier such as a road or stream."                         
                                                                               
 CO-CHAIRMAN GREEN asked if there were any objections.  Hearing                
 none, the MOTION PASSED.                                                      
                                                                               
 REPRESENTATIVE DAVIES made a MOTION to CONCEPTUALLY AMEND CSSSHB
 191(RES), page 10, lines 6-16, deleting the word "permit"                     
 everywhere it appears in Section 23 and where appropriate                     
 substitute the word "lease."  He added where the word "permittee"             
 appears, change it to the word "lessee."                                      
                                                                               
 MR. LUCKHAUPT said he understood the sense of the amendment and               
 would make the changes.                                                       
                                                                               
 REPRESENTATIVE DAVIES thought line 6, page 10, would read better if           
 it said "cabin site lease".                                                   
                                                                               
 CO-CHAIRMAN GREEN noted there was no quorum present.                          
                                                                               
 REPRESENTATIVE DAVIES WITHDREW his motion.                                    
                                                                               
 ADJOURNMENT                                                                   
                                                                               
 There being no further business to come before the House Resources            
 Committee, Co-Chairman Green adjourned the meeting at 9:53 a.m.               
                                                                               
                                                                               

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