Legislature(1995 - 1996)

09/27/1996 01:00 PM House RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
      JOINT HOUSE AND SENATE RESOURCES STANDING COMMITTEES                     
                       September 27, 1996                                      
                       Anchorage, Alaska                                       
                           1:00 p.m.                                           
                                                                               
                                                                               
 HOUSE MEMBERS PRESENT                                                         
                                                                               
 Representative Joe Green, Co-Chairman                                         
 Representative Scott Ogan, Vice Chairman                                      
 Representative John Davies (via teleconference)                               
 Representative Pete Kott                                                      
                                                                               
 OTHER HOUSE MEMBERS PRESENT                                                   
                                                                               
 Representative Gail Phillips                                                  
 Representative Jeannette James (via teleconference)                           
 Representative Pete Kelly (via teleconference)                                
 Representative David Finkelstein                                              
                                                                               
 HOUSE MEMBERS ABSENT                                                          
                                                                               
 Representative William K. "Bill" Williams, Co-Chairman                        
 Representative Ramona Barnes                                                  
 Representative Alan Austerman                                                 
 Representative Don Long                                                       
 Representative Irene Nicholia                                                 
                                                                               
 SENATE MEMBERS PRESENT                                                        
                                                                               
 Senator Loren Leman, Chairman                                                 
 Senator Rick Halford                                                          
 Senator Robin Taylor (via teleconference)                                     
 Senator John Torgerson                                                        
                                                                               
 SENATE MEMBERS ABSENT                                                         
                                                                               
 Senator Drue Pearce, Vice Chairman                                            
 Senator Steve Frank                                                           
 Senator Georgianna Lincoln                                                    
 Senator Lyman Hoffman                                                         
                                                                               
 COMMITTEE CALENDAR                                                            
                                                                               
 Spruce Bark Beetle Infestation                                                
                                                                               
 PREVIOUS ACTION                                                               
                                                                               
 No previous action to record                                                  
                                                                               
 WITNESS REGISTER                                                              
                                                                               
 JERRY BOUGHTON, Chairman                                                      
 Alaska Society of American Foresters                                          
 P.O. Box 2938                                                                 
 Palmer, Alaska 99645                                                          
 Telephone:  (907) 271-2535                                                    
                                                                               
 DR. ED HOLSTEN                                                                
 U.S. Entomologist/Forest Health Specialist                                    
 3301 "C" Street, Suite 522                                                    
 Anchorage, Alaska 99503                                                       
 Telephone:  (907) 271-2535                                                    
                                                                               
 DR. PATRICK MOORE, Director                                                   
 Forest Alliance of British Columbia                                           
 4068 West 32nd Avenue                                                         
 Vancouver, B.C.  Canada                                                       
 Telephone:  (604) 969-4250                                                    
                                                                               
 TOM BOUTIN, State Forester                                                    
 Division of Forestry                                                          
 Department of Natural Resources                                               
 400 Willoughby Avenue, Third Floor                                            
 Juneau, Alaska 99801-1724                                                     
 Telephone:  (907) 465-3379                                                    
                                                                               
 LES REED, President                                                           
 F.L.C. Reed and Associates Ltd.                                               
 12471 Phoenix Drive                                                           
 Richmond, B.C.  Canada                                                        
 Telephone: (604) 969-4250                                                     
                                                                               
 LANCE TRASKY, Supervisor                                                      
 Southcentral Region                                                           
 Division of Habitat and Restoration                                           
 Department of Fish and Game                                                   
 333 Raspberry Road                                                            
 Anchorage, Alaska 99518-1599                                                  
 Telephone:  (907) 267-2335                                                    
                                                                               
 GREG ENCELEWSKI, Assistant to the President                                   
 Ninilchik Native Corporation                                                  
 800 East Dimond Blvd., Suite 3-490                                            
 Anchorage, Alaska 99515-2044                                                  
 Telephone:  (907) 344-8654                                                    
                                                                               
 JIM CAPLAN, Deputy Regional Forester                                          
 Natural Resources                                                             
 U.S. Forest Service                                                           
 P.O. Box 21628                                                                
 Juneau, Alaska 99802-1628                                                     
 Telephone:  (907) 586-8863                                                    
                                                                               
 MIKE FASTABENT                                                                
 University of Alaska, Fairbanks                                               
 Alaska Cooperative Extension Service                                          
 P.O. Box 757020                                                               
 Fairbanks, Alaska 99775                                                       
 Telephone:  (907) 474-7661                                                    
                                                                               
 JACK PHELPS, Executive Director                                               
 Alaska Forest Association                                                     
 111 Stedman, Suite 200                                                        
 Ketchikan, Alaska 99901-6599                                                  
 Telephone:  (907) 225-6114                                                    
                                                                               
 CLIFF EAMES                                                                   
 Alaska Center for the Environment                                             
 519 West 8th Avenue                                                           
 Anchorage, Alaska 99501                                                       
 Telephone:  (907) 274-3621                                                    
                                                                               
 CATHERINE THOMAS, Incoming Chair                                              
 Alaska State Chamber of Commerce                                              
 ArcTech Services, Incorporated                                                
 P.O. Box 3005                                                                 
 Kenai, Alaska 99611                                                           
 Telephone:  (907) 776-5515                                                    
                                                                               
 JOAN NININGER, Owner                                                          
 Secretary/Treasurer                                                           
 Circle DE Pacific                                                             
 6239 "B" Street, Suite 201                                                    
 Anchorage, Alaska 99518                                                       
 Telephone:  (907) 349-3430                                                    
                                                                               
 PETER ECKLAND, Administrative Assistant                                       
   to Representative Bill Williams                                             
 Alaska State Legislature                                                      
 352 Front Street                                                              
 Ketchikan, Alaska 99901                                                       
 Telephone:  (907) 247-4672                                                    
                                                                               
 ACTION NARRATIVE                                                              
                                                                               
 TAPE 96-81, SIDE A                                                            
 Number 000                                                                    
                                                                               
 The meeting was called to order in Anchorage, Alaska at 1:00 p.m.             
                                                                               
 JOE GREEN, CO-CHAIRMAN, HOUSE RESOURCES COMMITTEE:  ....The                   
 director of the Forest Service Tom Boutin.  In Kenai we have                  
 Senator Torgerson, and in Fairbanks Representative James and I                
 understand Representative Davies is in route.  In Homer we have               
 Speaker of the House Gail Phillips who would like to make an                  
 address in a few moments.  And then on listen only, we have Mat-Su,           
 Seward, Cordova and Washington, D.C.  So we have a good listening             
 audience as well as I'm pleased to say a good audience here.  So              
 without any further ado, I'd like to turn the meeting over briefly            
 to my co-chair here, Senator Loren Leman of the Senate Resources              
 Committee to introduce his members.                                           
                                                                               
 Number 043                                                                    
                                                                               
 SENATOR LOREN LEMAN, CHAIRMAN, SENATE RESOURCES COMMITTEE:  Thank             
 you Representative Green.  I'm Senator Loren Leman, the Chairman of           
 the Senate Resources Committee, and we have here in Anchorage with            
 us today Senator Rick Halford and on-line in Sitka, Senator Robin             
 Taylor who are both members of the committee.  And if there are               
 other members of the committee who are listening in to please                 
 identify yourself or if later they arrive on the remote sites,                
 please have somebody let us know so that I can acknowledge them               
 also.                                                                         
                                                                               
 Number 117                                                                    
                                                                               
 CO-CHAIRMAN GREEN:  Thank you.  Also at the table here we have the            
 vice chair of the House Resources Committee, Scott Ogan from the              
 Valley.  And with that I would like to turn over for introductions            
 to Jerry Boughton of the Society of American Foresters and after              
 that I understand you'd like to make a statement and then I would             
 like to have recognized Speak Phillips from Homer before we get               
 into the next presentation.                                                   
                                                                               
 Number 148                                                                    
                                                                               
 JERRY BOUGHTON, CHAIRMAN, ALASKA SOCIETY OF AMERICAN FORESTERS:               
 Okay, thank you Representative Green.  I'd like to make some brief            
 introductions.  We have some individuals who will make some                   
 presentations here today that the Society of American Foresters has           
 brought here.  We have Dr. Ed Holsten.  Dr. Holsten is a                      
 entomologist with the U.S. Forest Service here in Anchorage.  He              
 has been an entomologist practicing in Alaska for 15 to 18 years.             
 In that range, he has been dealing with the spruce beetle situation           
 throughout that time and is recognized as one of the leading                  
 experts on this situation and on the spruce beetle in Alaska.  He's           
 also involved in a considerable number of research efforts to                 
 understand the implications of this beetle and the biology of this            
 beetle.  We also have with us today two distinguished gentlemen of            
 international fame.  We have Mr. Les Reed.  Here Mr. Les Reed is a            
 past chief of the Canadian Forest Service from Ottawa.  He is                 
 currently and international forestry consultant.  He has experience           
 working with these kinds of situations in many countries across the           
 world.  He has worked in over 40 countries across the world on                
 forestry issues.  We also have with us today Dr. Patrick Moore.               
 Patrick is an individual who has been an environmental activist for           
 a number of years.  He is original -- one of the original founders            
 of Green Peace.  He functioned as a director of Green Peace                   
 International and Green Peace Canada for a number of years.  He is            
 an author of a book that's just out called "The Pacific Spirit,"              
 and he is currently with an organization, "The Forest Alliance of             
 British Columbia," which is an organization that is trying to                 
 determine how to best deal with forestry issues in Canada, and he             
 is also the chair of the Forest Practices Committee of that                   
 organization.  So I think we have some distinguished gentlemen here           
 of significant knowledge to share some information with you today.            
 I would like to briefly read a statement, if I could, representing            
 the Society of American Foresters.  First we would like to thank              
 the chairs of the House and Senate Resources Committees and the               
 members that are here today to listen to this information and to              
 consider this very serious issue that is effecting Alaska's forest.           
 The Society of American Foresters has about 18,000 members.  It is            
 the national organization that represents all segments of the                 
 forestry profession in the United States.  It includes public and             
 private practitioners, researchers, administrators, educators and             
 forestry students.  It includes individuals representing many                 
 disciplines related to forest management such as hydrology,                   
 wildlife biology, entomology, et cetera.  The objectives of the               
 Society are to advance the science technology education and                   
 practices of professional forestry in America and use  the                    
 knowledge and skills of the profession to benefit society.  I'm               
 proud to be here today with you as the chair of the Alaska portion            
 of that society which has approximately 250 members.  The members             
 of the Alaska Society became concerned with this beetle situation             
 and this increasing decline in forest conditions in 1993.  At that            
 time we developed a position statement about this situation that              
 stressed recognition of numerous resource impacts and the need for            
 coordinated owner efforts across ownerships to reduce further                 
 impacts and to restore already impacted forests.  A copy of the               
 position is in the information packets that have been distributed.            
 The active infestation in 1993, at that time, was occurring at a              
 rate of about 700,000 acres per year.  Since that time, forest                
 management to address this issue on all Alaska ownerships, but                
 particularly on public administered lands, has not come close to              
 matching the increased rate of infestation.  Attempts by public               
 managers have been met with debate, protest and litigation and                
 relatively little actual treatment.  All the while, the beetle                
 infestation has continued to excellerate.  The aggressive and                 
 coordinated efforts that were a hoped outcome at that time, as a              
 result of this 1993 position statement, the Alaska Forest Health              
 Initiative that was occurring at that time and other efforts simply           
 have not materialized in a fashion to deal with this situation.               
 Now in 1996, approximately 1.3 million acres are actively having              
 trees killed on them by these beetles.  That's nearly double the              
 rate of how it was occurring in 1993.  Nearly three million acres             
 in total, possibly one-half of the white spruce forest type in                
 Alaska have been heavily impacted by this beetle to date.  The                
 skyrocketing epidemic is threatening the very existence of our                
 white spruce forests, certainly as Alaskans have known and used               
 those forests for the past 100 years or so.  Coordinated efforts to           
 understand the ramifications of this forest removal on our fish,              
 wildlife, recreation, watershed and timber values is not taking               
 place.  Which communities are at fire risk?  What will be the                 
 future cost of reforestation?  How will this effect tourism?  And             
 whole variety of other forest values is simply not being quantified           
 at this time.  In 1993, the National Office of the Society of                 
 American Foresters published a report that was to assess the task             
 of managing the nation's forest to sustain their health and long              
 term productivity of all forest values.  That report stated that to           
 achieve this goal will require strategies which meet the following            
 criteria:  (a) Maintain the structural and functional integrity of            
 the forest as an ecosystem; (b) meet the diverse needs of the human           
 community; and (c) commit the technological, financial and human              
 resources needed for implementation.  In Alaska, we have a crises             
 at this point in time.  It's of world scope in magnitude.  We have            
 the distinction of having the largest spruce beetle epidemic                  
 killing forest, not only in the United States, in North America and           
 possibly in the world.  What are we doing about it?  In good                  
 consciousness, we can simply can no longer ignore this situation.             
 Certainly, a strategy that meets the criteria that I just went over           
 from that other report is needed for Alaska.  What to do is often             
 quickly channeled into a question of "To log or not to log?"  And             
 it becomes a debate, it becomes a philosophical emotional debate.             
 The Society is urging you, as the state's policy makers, to not               
 fall into that debate, but to look at the bigger picture.  How is             
 this dramatic and tremendous forest changes that's occurring in               
 Alaska, how is it effecting the resource values that we hold dear             
 and that we want to have for future Alaskans.  Because of these               
 tenants, many members of the Alaska Society of American Foresters             
 are compelled to bring this subject before you.  It is our hope               
 that this will be the start of long overdue aggressive, coordinated           
 and positive actions to slow or prevent this further decline and to           
 restore impacted areas.  These actions are imperative to maintain             
 our existing resource values to the greatest extent possible and to           
 ensure quality resource values for future generations of Alaskans.            
                                                                               
 Number 1005                                                                   
                                                                               
 CO-CHAIRMAN GREEN:  Thank you very much Jerry.  I really want to              
 express the appreciation of the House Resources Committee and I'm             
 sure that Co-Chair Senator Leman would say the same.  We appreciate           
 your volunteering to come up and make these facts known to us.  It            
 doesn't take one very long to drive outside of the city and see               
 dead and dying trees.  So we're aware.  We weren't perhaps aware,             
 to the extent that you're bringing to our attention, how serious              
 this is, but I am actually here kind of as a surrogate for my Co-             
 Chair Bill Williams who was unable to be here or on teleconference,           
 but he handles forest activities for the House Resources.  My                 
 comraderie, the Senator Leman, handles both - everything that comes           
 before his committee.  But I did want to make that statement and              
 then introduce some other people who we would hope to hear from               
 today and perhaps set the ground rule.  What we're hoping to have             
 today is not a confrontation meeting at all.  It's strictly a data            
 gathering and educational meeting and if there are people who will            
 perhaps differ from what you suggest to us, I would certainly be              
 willing to stay here after we adjourn this meeting, but I would               
 like to hold any confrontational type questions till after this               
 meeting is adjourned.  In fact, I would like, if it's permissible             
 all the presenters to hold all questions until all the information            
 is on and then feel free to ask any questions of any of the                   
 presenters.  And if that's acceptable, we have with us on                     
 teleconference Tom Boutin of the Division of Forestry for the                 
 state, we have Greg Encelewski of the Ninilchik Native Corporation,           
 Larry Hudson U.S. Forest Service, Mike Fastabent of the Alaska Coop           
 Extension, Jack Phelps is here with the Alaska Forest Association             
 and finally, I hope - I haven't seen him but Lance Trasky with --             
 oh there he is, yes - is here with the Division of Fish and Game              
 and I would hope that all of these people would be able to add                
 something to our database.  With that I would like to hear from --            
 Gail are you on?                                                              
                                                                               
 REPRESENTATIVE GAIL PHILLIPS:  I certainly am.                                
                                                                               
 CO-CHAIRMAN GREEN:  Would you like to make some comments please?              
                                                                               
 Number 1216                                                                   
                                                                               
 REPRESENTATIVE PHILLIPS:  Thank you Joe and thank you very much               
 Senator Leman and Representative Green for this opportunity and for           
 putting this meeting together.  I really appreciate the attention             
 the Resource Committees are paying to this critical issue.  During            
 the course -- I attended the meetings yesterday in Kenai and during           
 the course of your hearing today, you will receive expert testimony           
 from the professionals and the experts on this subject.  There are            
 very very sobering facts that will be presented to you.  I am going           
 to speak coming from a resident of this highly volatile area of               
 infestation, but also as a person that many many years ago served             
 on an interagency task force when the spruce beetle epidemic was              
 first getting a stronghold on the Kenai Peninsula, and had we taken           
 our legislative responsibility seriously at that time, I don't feel           
 that we would be in the position we are today.  As Alaskans, we               
 pride ourselves often on being the biggest state, having the                  
 tallest mountains, having the greatest miles of shoreline, and all            
 these other superlatives.  We are faced with a superlative today              
 that is shameful and that is we in Alaska have the largest                    
 infestation of (indisc.) beetle in our forest of any state in the             
 union and possibly the largest infestation in any country in the              
 world.  And that is terribly terribly shameful as far as I am                 
 concerned.  When we all as legislators were sworn into office, we             
 took an oath of office that we would uphold our constitution and              
 one of the points in the constitution is our responsibility to                
 protect and wisely use and manage the resources that we have in               
 this land.  Ladies and gentlemen, we are doing a terrible terrible            
 job of that responsibility.  In fact, I believe that we have been             
 totally irresponsible in the ignorance that is portrayed and in our           
 ignoring this major major health problem in Alaska's forest.  No              
 longer are we looking at just an outbreak on the Kenai Peninsula,             
 and a small area of the Kenai Peninsula at that.  When you see the            
 pictures today you will see an ugly ugly picture, but no longer is            
 it just on the Kenai Peninsula, it is throughout this whole state.            
 I think that we are at a point, and my involvement with this goes             
 back many years, I think we are at the point today where                      
 legislatively we must take our constitutional responsibility to               
 heart.  We must legally enforce that responsibility.  We must                 
 declare a state of emergency and we must take action.  We have                
 talked about this issue for years.  We have have had numerous task            
 forces, both from the state, the borough, the federal government.             
 We can talk until we're blue in the face and exactly what's gonna             
 happen is what has happened today in that our forests in Alaska are           
 being destroyed by a little bug and we sit here and fiddle while              
 Rome burns.  Ladies and gentlemen, as you listen to the testimony             
 today, please keep in mind that I feel that it is time for the                
 legislature to step to the plate and take in our responsibility and           
 declare an emergency on this.  Thank you very much, Mr. Chairman.             
                                                                               
 Number 1601                                                                   
                                                                               
 CO-CHAIRMAN GREEN:  Thank you very much Gail.  I would like to                
 recognize that Senator - or excuse me, Representative Kott has                
 joined us.  Would any members of either the House or Senate                   
 Resources Committee like to say anything before we get started?               
 Senator Leman.                                                                
                                                                               
 Number 1621                                                                   
                                                                               
 CHAIRMAN LEMAN:  I'd just add I'm anxious to get started only to              
 get as much covered as possible and I agree with you if we could do           
 that and then get into the questions, it's probably the best use of           
 our time.                                                                     
                                                                               
 Number 1635                                                                   
                                                                               
 REPRESENTATIVE JEANNETTE JAMES:  Representative Green.                        
                                                                               
 CO-CHAIRMAN GREEN:  Yes.                                                      
                                                                               
 REPRESENTATIVE JAMES:  This is Jeanette in Fairbanks and                      
 Representative Pete Kelly has just come in and Tim Kerr from John             
 Davies office is here.                                                        
                                                                               
 CO-CHAIRMAN GREEN:  Okay, thank you very much Jeannette.                      
                                                                               
 Number 1644                                                                   
                                                                               
 SENATOR RICK HALFORD:  My only comment was to the Speaker's                   
 comment.  I agree with what she said, but I wonder if she has some            
 new way that I could never find.  I wonder how the legislature goes           
 about declaring an emergency.                                                 
                                                                               
 Number 1704                                                                   
                                                                               
 REPRESENTATIVE PHILLIPS:  We figure out a lot of other things.  I             
 think we can figure out that one.                                             
                                                                               
 CHAIRMAN LEMAN:  That was Senator Halford.  I'm sure you recognized           
 the voice.                                                                    
                                                                               
 CO-CHAIRMAN GREEN:  If there are no other comments, then we will              
 get into the meat of the project.  And I guess, Jerry, you'd like             
 Dr. Holsten to go first.                                                      
                                                                               
 MR. BOUGHTON:  Yes, if Ed could provide an overview of the                    
 situation.                                                                    
                                                                               
 Number 1731                                                                   
                                                                               
 DR. ED HOLSTEN, U.S. ENTOMOLOGIST/FOREST HEALTH SPECIALIST:  Sure,            
 my name is Ed Holsten.  As Jerry said, I've been working with                 
 spruce beetle for basically since early 70s, full time with the               
 Forest Service here since 77.  A majority of my work has been                 
 involved in research of a variety of nature, everything from                  
 management techniques to reduce impacts of the beetle to the other            
 extreme, pesticides as well as involved quite a bit in monitoring             
 areas of intensification of this outbreak as well as technical                
 assistance.  What I want to do here is just kind of lay a little              
 ground work, a little historical perspective so the rest of the               
 specialists can kind of build on that.  As that graph there shows             
 spruce beetle has been around for quite a while.  What we see on              
 that graph is just based on what written records that we have had.            
 And since about the 70s, we do a fairly intensive aerial survey of            
 the whole state, all forested areas.  So you can see there has been           
 quite a dramatic increase, most notably about ten years ago.  So              
 the point - one point is we've always had beetles as long as we've            
 had spruce and spruce beetle occurs wherever spruce is found in the           
 state, from Southeast Alaska up to tree line in the Brooks Range.             
 Outbreaks build up and have been most prevalent in Southcentral.              
 Southcentral is kind of the banana belt for spruce beetle.  We have           
 had outbreaks and we do have outbreaks in Southeast Alaska.  The              
 probability of having problems in Sitka spruce stands are less, not           
 to say we don't have outbreaks there.  That photo over there is of            
 Kachemak Bay and that's a Sitka spruce site.  Southcentral Alaska,            
 without going into a lot of reasons why, is just perfect habitat              
 for the beetle.  The right type of trees, the right type of                   
 climate.  Even though we have very extensive white spruce stands up           
 in the Interior, we have a whole different complex of insect fest             
 up there that potentially could cause problems, but right now we              
 don't have major spruce beetle outbreaks lets say along the Yukon-            
 Kuskokwim River.  We have had problems there, but nothing to the              
 magnitude that were seeing now on Kenai, Anchorage Bowl and                   
 especially the Copper River Basin.  That map over there is of                 
 Copper River Basin area, the Glennallen Copper Center area.  Those            
 dark green areas portray areas of infestation that we've picked up            
 from aerial surveys this year.  As Jerry stated, we're up to about            
 1.4 million acres of -- that's active and ongoing and new infested            
 areas, not areas where the beetles have come gone.  So that 1.3 to            
 4 million figure is "a record high."  What helped and I won't go              
 into, but is it still somewhat debatable, as most of you remember             
 1993 was the mother of all summers, at least in Southcentral,                 
 record high temperatures - early temperatures.  We already had                
 quite a large population of beetles.  Do to that whether regime               
 there, beetle populations doubled statewide in one year.  So we               
 already had quite a large base of beetles and doubled that, so in             
 1994 populations really started climbing.  One of the differences             
 I've noticed and a lot of people -- I've just finished up having a            
 national steering committee made up bark beetle specialists that              
 was going on this week down in the Kenai, so there were about 27              
 people from Canada and the Lower 48 up that work with different               
 bark beetle type problems.  One of the things that came to light              
 quickly for those folks, these are folks who have worked quite                
 extensively with bark beetles, it's not so much the extensive                 
 nature of this outbreak - the large acreages that are involved, but           
 intensiveness of the outbreak.  Spruce Beetle historically will               
 come in and out of a stand for one or two years, stakeout a certain           
 percent of the large spruce.  What we're seeing in the last few               
 years is incredible mortality in some of these stands.  That photo            
 there those stands are about 90 percent dead in the matter of three           
 four years.  Not all areas of the state are being impacted to that            
 degree of severity, but there are some very very large notable                
 areas - the Copper Center area, extreme heavy mortality in those              
 stands and in the lower Kenai.  Elsewhere in the state, depending             
 on the stand structure of the types of trees, the mixture of                  
 species, the overall impact is less.  But there is huge areas with            
 very very severe intensive mortality that has been occurring.  A              
 lot of this discussion, that's gonna take place afterwards here,              
 will have to do with impact and I'm not gonna go into a lot of                
 detail because there is a lot more specialists than myself on                 
 impact.  But when I'm referring to impacts, they could be negative            
 as well a positive - the effects that the beetle is having on our             
 forest community.  Unfortunately, like Jerry mentioned, there is a            
 real paucity of information to quantify and qualify these impacts.            
 But quickly, obviously there is one of loss of wood fiber.                    
 Sawlogs, three years - after they've been dead for three years                
 quickly lose their value.  However, for chips they hold their value           
 quite well for a long period of time.  There has been a number of             
 studies that have been done by the University of Alaska as well as            
 the University of Arizona on the impacts that the beetle is having            
 on aesthetic quality.  "One of the portions of recreation                     
 experience, especially on the Kenai."  And there is some very very            
 good results coming out about how the public, both residents and              
 nonresidents, view bark beetle outbreaks.  Wildlife habitat, there            
 is some fish and game folks here which will talk a little bit more            
 about that.  That hasn't been looked into too much up here by                 
 wildlife biologists.  In other words, what are the impacts having             
 on habitat of those animals that are associated with live green               
 spruce forests?  And a lot of people kind of assumed this outbreak            
 would come and go in a matter of years - the overall impact                   
 wouldn't be very severe.  The last few years there has been formed            
 an interagency committee made up Fish and Game, Fish and Wildlife             
 Service, Forest Service and Division of Forestry, entrusted to                
 quantify and qualify some of these impacts that may be occurring to           
 wildlife habitat for a variety of species due to bark beetles.                
 Fuel build-up is a major concern and I don't know if John See is              
 here, I don't think he's here, but he is the fire behavioral                  
 specialist for Division of Forestry.  There is a real concern,                
 especially in view of what happened this summer up in Wasilla and             
 the two fires down on the Kenai, what effect beetle killed timber             
 will have on risk of wildfire and there is some fairly good data              
 especially coming out of the Crooked Creek fire and the Hidden                
 Creek fire.  We know for a fact that about five to ten years after            
 beetles infest a stand those trees snap off and come down.  What              
 that means is large woody fuels.  The amount of that material                 
 increases from 2 tons per acre, under normal conditions, up to 30             
 to 40 to 50 tons per acre.  So we seeing in over a large scale a              
 dramatic increase in large woody fuels, which is a major factor in            
 large fires.  Also, once these stands open up, a lot of these                 
 stands not all, but very many of them on the Kenai, are being                 
 invaded by a grass, kellamagrostis(ph.).  It's a blue joint grass.            
 It's a very tall grass with - probably most of you have seen - it's           
 a perennial grass, and that occupies the site.  Being a perennial             
 grass it dries out every winter and that's our main fine flashing             
 fuel that starts most of the fires and carries most of the fires in           
 Southcentral Alaska.  So one of the concerns from fire folks in               
 many areas is increased fuels due to beetle infested areas, and               
 also a dramatic increase in kellamagrostis grass which aids in the            
 quick spread of fires.  So the overall risk of large fires is                 
 slowly increasing not only due to fuel build-up, but with                     
 encroachment of grass.  So that's a real concern to those that are            
 dealing with fire.  The other thing is is what we're seeing, and              
 we're not quite sure, is we're seeing in these large scale areas              
 like up at Copper Center those pure spruce stands have been heavily           
 hit by beetles.  There is very little regeneration occurring                  
 underneath those stands.  They're very even aged, fairly uniform              
 stands.  And the real concern is is without intervention what type            
 of vegetation, what type of forest are we going to have down the              
 road?  We have very little replacement growing stock, plus the seed           
 source from the spruce as the years go on is being reduced as the             
 trees are being killed, so we're lacking the seed source.  We're              
 gonna see a change and we are seeing a change in many of our                  
 forested areas, not to say that that change necessarily is bad.               
 There will always be some type of vegetation out there, but whether           
 that forest vegetation will provide the amenities or products that            
 we're used to only time will tell.  So one of the misperceptions is           
 that once the beetle comes through a stand, the stands naturally              
 regenerate right back to spruce again.  That isn't necessarily                
 what's happening in many many areas.  There is very little                    
 regeneration coming back in for the reasons that I just talked                
 about.  So we will be seeing a change and a change is occurring in            
 (indisc.) forests here due to beetles to be good or bad, but we're            
 not without some type of intervention in high valued areas, we're             
 not gonna get back the same type of forest structure assuming                 
 that's what we want - what we have now.  So I think it's that last            
 point I kind of want to get home.  Again, there is a real                     
 misperception that the beetle is a natural agent.  People can argue           
 whether that's natural or unnatural, but it's almost a moot point,            
 but the main misperception is the regenerative powers.  In other              
 words, once beetles come through, spruce will just come right back.           
 We've been monitoring areas that have been impacted by the beetles            
 for close to 20 years now in a particular plot and we see very                
 little if any regeneration coming back on these sites due to                  
 competition of grass.  So we're seeing some large changes in forest           
 makeup.  And on that note, I think I'll just leave it there and,              
 hopefully, that's enough ground work - background information.                
 I'll let everybody else add on to it.  Thank you very much for the            
 opportunity.                                                                  
                                                                               
 Number 2932                                                                   
                                                                               
 CO-CHAIRMAN GREEN:  Thank you very much Dr.  The next person that             
 we had to give us a perspective is Dr. Patrick Moore.                         
                                                                               
 Number 2940                                                                   
                                                                               
 DR. PATRICK MOORE, DIRECTOR, FOREST ALLIANCE OF BRITISH COLUMBIA:             
 Thank you very much.                                                          
                                                                               
 Number 2941                                                                   
                                                                               
 REPRESENTATIVE PETE KELLY:  Mr. Chairman, this is Pete Kelly in               
 Fairbanks.  The last testifier, could I get his name please, Mr.              
 Chairman.                                                                     
 CO-CHAIRMAN GREEN:  Yes, that's Ed Holstein - H o l s t e i n.                
                                                                               
 DR. HOLSTEN:  e n.                                                            
                                                                               
 CO-CHAIRMAN GREEN:  e n.                                                      
                                                                               
 Number 3000                                                                   
                                                                               
 REPRESENTATIVE JOHN DAVIES:  Mr. Chairman.                                    
                                                                               
 CO-CHAIRMAN GREEN:  Yes.                                                      
                                                                               
 REPRESENTATIVE DAVIES:  This is John Davies up in Fairbanks.  Just            
 want to let you know I'm here.                                                
                                                                               
 CO- CHAIRMAN GREEN:  Thank you John.  Anybody else.  Have they                
 joined us since we had the opening notices from teleconference                
 sites.                                                                        
                                                                               
 UNIDENTIFIED SPEAKER:  This is Kenai.  We have Senator Salo's staff           
 here.                                                                         
                                                                               
 CO-CHAIRMAN GREEN:  Okay.                                                     
                                                                               
 UNIDENTIFIED SPEAKER:  And Representative Davis staff.                        
                                                                               
 TOM BOUTIN, STATE FORESTER, DIVISION OF FORESTRY, DEPARTMENT OF               
 NATURAL RESOURCES:  Mr. Chairman, this is Tom Boutin.  Here in                
 Juneau we have Paula Terrel from Senator Lincoln's office and                 
 Annette Kreitzer from Senator Leman's office.                                 
                                                                               
 CO-CHAIRMAN GREEN:  Okay, thank you very much.                                
                                                                               
 UNIDENTIFIED SPEAKER:  Mr. Chairman, do you wish to hold questions            
 until after?                                                                  
                                                                               
 CO-CHAIRMAN GREEN:  At least I think we should get through these              
 first three speakers because, again, we want to make sure that it's           
 factual data rather than digressing off on personal questions.  I             
 have a bunch myself.  Dr. Moore.                                              
                                                                               
 DR. MOORE:  Thank you, Representative Green.  It's a pleasure to              
 meet with you this afternoon, members of the House and Senate                 
 Resources Committee.  Unfortunately, after flying over the Kenai              
 Peninsula yesterday for a couple of hours from one end to the                 
 other, it is sad for me that I have to report to you that you do              
 really have an environmental emergency on your hands here in                  
 Alaska.  I've seen forests around the world from Western Australia            
 to Northern Europe to Brazil, all across Canada and the United                
 States, and I have to say I've never seen anything quite so                   
 extensive and devastating as you have presently got occurring here            
 in the state of Alaska in the way of forest destruction by a                  
 natural agent, in this case the spruce bark beetle.  One of the               
 reasons that there has been inaction to date on this problem is the           
 paralysis that's been caused by the basic philosophical controversy           
 within your community as to whether or not this is a natural                  
 phenomenon that should simply be allowed to take it's course as               
 nature does or whether you have a disease or plague or a parasite             
 on your hands here that should be treated as such.  I'm afraid to             
 tell you that this has been a false question and it has been very             
 unfortunate in the same way that you've been led to believe this is           
 a choice between logging or not logging, you've been led to believe           
 this is choice between seeing this as a natural event or some kind            
 of disease.  If I could just read a couple of paragraphs from my              
 book to show you how I've tried to explain this in a way that gets            
 rid of this duality that's been imposed in this debate.  "Some                
 people might say that diseases are a natural part of the forest so            
 they must be good for trees in the long run.  Species of beetles              
 that chew the life out of pine trees and spruce trees are after all           
 part of the biological diversity of the forest.  Why should we                
 refer to them as a disease when they have just as much right to               
 live as the trees.  This is about the same as saying that smallpox            
 and the HIV virus are good for humans.  Disease may well play a               
 positive roll in evolution, but this is hardly going to convince us           
 to let epidemics run their course.  The same is true for                      
 domesticated plants and animals.  When confronted with a disease              
 that threatens to destroy crops, our reaction is to find a control            
 for the disease, not to welcome it as part of biological diversity.           
 It is a bit utopian to expect otherwise.  Professional foresters              
 who concern themselves with forest health are no different in this            
 respect from medical doctors, veterinarians and plant pathologists.           
 They prefer healthy productive forests that are not infested with             
 fungi and insects that damage or kill trees.  They have developed             
 a whole range of strategies to reduce the incidence of disease in             
 trees and many of these have resulted in dramatic improvements in             
 growth and survival.  Some pests, like bark beetles, must be more             
 less accepted as a fact of life and the only approach is to manage            
 around and with them.  Whatever tactics are used, the knowledge of            
 and treatment of tree diseases is an integral part of forest                  
 science.  The desire to cure disease is at least as natural as the            
 disease itself."  And that's why this is a false debate.  There is            
 nothing unnatural about trying to cure a natural disease such as              
 the bark beetle and I believe that in the case of the situation you           
 have here in Alaska today, you have not choice if you were to                 
 exercise responsibility towards the people and the ecosystem of the           
 great forest you have here in Alaska than to take some                        
 intervention.  Already there has been a great intervention in the             
 form of suppressing natural wildfires throughout the whole state of           
 Alaska, throughout North America, very successful.  That's part of            
 the reason why forests get older these days than they did before              
 fire suppression was brought in and that's part of the reason why             
 these forests are more susceptible to beetles, it's because they              
 didn't burnt down before they got old and became susceptible.  It's           
 very ironic and not necessarily intuitive to people.  When you're             
 told as you've been told that when these forests die from the                 
 beetle, they aren't just necessarily gonna grow back into beautiful           
 spruce forests right away again, they're gonna turn into                      
 grasslands.  That's partly because they're not going to burn.  If             
 these forests, which die, were to have huge clematis wildfires go             
 through them, and with the heavy fuel loading you'd have deep                 
 burning of the organic layer in the soils, that would go back down            
 and expose the mineral soil, then the spruce would come back.  But            
 so long as you have heavy organic soils after these trees have                
 died, you'll have a very difficult if not impossible time to get              
 your spruce forests back again.  That's why it's not just a                   
 question of logging or not logging.  Obviously, in many areas of              
 the state where even all the spruce trees have been killed such as            
 in some of your national parks, you're probably not going to go               
 into an extensive logging program although that may be wise from an           
 ecological perspective because the problem is is every tree that              
 becomes infected becomes an infection center to infect ten more               
 trees, because one beetle goes in and lays a whole pile of grubs              
 under the bark and then every one of those grubs comes out as a new           
 beetle and that's why there is expediential growth in these                   
 populations.  So getting rid of the infected trees is really the              
 best way to stop the epidemic and really the only effective way               
 short of aerial spraying over mass areas with pesticides which is             
 not acceptable either ecologically or socially.  So sanitation is             
 the way to go.  In Scandinavia, it's virtually illegal to leave               
 dead trees that have been killed by beetles in the forest.  As a              
 matter of fact, it is illegal.  It's illegal to leave timber along            
 the roadside for a lengthy period of time because it can become a             
 reservoir for beetles.  The great irony here in the United States             
 is it's practically become illegal to cut the dead trees down                 
 because of various environmental legislation, which I believe runs            
 counter in this case to the real needs of the environment.                    
 Ecological restoration is what's needed here, not just extractive             
 logging.  That's (indisc.).  Logging is part of the solution in               
 many of the areas, particularly the state forests which are meant             
 to be managed on a sustained yield basis for multiple values.  It's           
 not just the timber that's being killed.  You think logging has               
 negative environmental impacts, you don't log the whole forest at             
 once like this beetle is killing it all at once.  At least with               
 logging there is lots of forest at various stages of growth if                
 you're on a sustained yield basis.  But with this beetle, you've              
 got massive wipe out of forests over the broad landscape and the              
 elimination of the habitat that that forest provides for many many            
 bird, insect, plant and mammal species.  So the impact of logging             
 should no longer be really considered to be the primary question              
 here.  The impact of the beetle kill is the primary question and              
 the way to deal with it in areas where you want to see spruce                 
 forests growing back again is through ecological restoration.  If             
 you want to see the ability of foresters to successfully intervene            
 and recreate the ecosystem, the natural ecosystem, not a                      
 monoculture pulp plantation or a phony forest, but a real forest              
 that looks like the one that was there in the first place, you                
 don't need to go any further than the Mt. Saint Helen's disaster in           
 Washington State where professional foresters, through the simple             
 intervention of site disturbance and salvage plus the replanting of           
 healthy two-year-old trees to get a good head start was able to               
 recreate that ecosystem decades before nature is able to do so on             
 its own.  It is possible through the science of ecological                    
 restoration to recreate these ecosystems far faster than they would           
 be recreated under normal means.  I want to make sure my colleague,           
 Les Reed, has lots of time to make his presentation so I'll stop              
 there, but I'd be glad to answer any questions you might have                 
 later.  Thank you very much.                                                  
                                                                               
 Number 3906                                                                   
                                                                               
 CO-CHAIRMAN GREEN:  Thank you Dr. Moore.  So with that, we'll go              
 right to you Les.                                                             
                                                                               
 Number 3911                                                                   
                                                                               
 LES REED, PRESIDENT, F.L.C. REED AND ASSOCIATES LTD.:  Thank you              
 very much.  It's a great pleasure for me to address the committee             
 of the legislature.  I've looked forward to this ever since I heard           
 this was gonna take place and I do hope that our time here in                 
 Alaska will be - you look back on it as some help.  I would like to           
 say that my visit here this time as part of this international                
 panel is a sequel to one held in 1993, where Governor Hickel's                
 foresight put in place an addition of on forest health and in 1993,           
 three people came here to overfly the forests and give advice on              
 what might be done.  Fortunately, -- unfortunately, very little               
 happened after that.  I am glad as an active member of the Society            
 of American Foresters, and my friend Jerry Boughton here, I'm glad            
 to be part of the association.  I've been a member for years and I            
 think they're doing a terrific job to bring this to public                    
 attention.  I will try and confine my remarks to eight points and             
 squeeze them in to ten minutes as my friend Patrick has done.                 
 Number one, my departure point is summarized by this proposition,             
 Alaska's land and renewable resources are world class without                 
 parallel on this globe.  Their vastness, their diversity, their               
 majesty, their accessibility are legendary.  It follows that this             
 incomparable landscape deserves world class stewardship.  Number 2,           
 no one should take an asset like this for granted.  There is no               
 such thing in nature as a static equilibrium.  Just when the                  
 community was really comfortable with being told that nature was              
 kind and benign and that nothing had to be done, disaster strikes,            
 the spruce beetle hits and the worst epidemic ever recorded, in my            
 opinion.  Just let nature take its course they say.  Well that's              
 what happened and now you can see you have an emergency on a                  
 classic world scale.  Not just the trees.  It's not possible to               
 separate the trees from the other assets, the wildlife habitat, the           
 watershed, recreation and all these other assets.  So any kind of             
 a solution which focuses simply on trees and their salvage is a               
 false solution.  Number three, based on my international                      
 experience, I have to say - and I speak with great reluctance, but            
 I have to say that sustainable forestry is not being achieved in              
 Alaska.  Maximum sustained yield is not being realized at the                 
 present time.  International criticism will soon be aimed at                  
 Alaska.  You can brace yourself, it's coming.  You're customers,              
 for one, will demand changes just as they have in B.C., Oregon,               
 Brazil, Southeast Asia.  You're customers will certainly demand               
 changes and they will want to know for certain - they will want               
 some kind of certification to say that you're managing forests                
 sustainably.  Number four, some good news.  World markets are                 
 growing.  There is an economic side of this that is good news.  The           
 world markets are growing rapidly for you're fish, you're big game,           
 you're tourism for forest products.  The potential markets open to            
 Alaska are double or triple in these fields.  In my opinion, the              
 forests of Southcentral Alaska are now, for the first time,                   
 economically operable, fully feasible now to occupy these forests             
 and utilize them.  It's not just a question of higher prices, which           
 are developing around the world which will make it easier for you             
 to cover your costs of extraction and processing, it's a question             
 of a lot of other things.  For example, we have developed now new             
 pulping processes which allow us to make wood pulp with no                    
 effluent.  Now that will sound strange, but you can actually do               
 this.  We have a duel mill in Saskatchewan which produces ground              
 wood pulp for newspapers with no effluent.  There are now alcohol             
 pumping processes which produce pulp with no effluent.  Not only              
 that, they are closed loop systems that guarantee that you can                
 recover a lot of byproducts like vadiliton(ph.) and fertilizer,               
 lignin, xylitol sweeteners for chewing gum and pop.  There are a              
 whole range of things that you can do with these new processes.               
 We're on the threshold - a breakthrough in technology in pulping.             
 Salvage of beetle kill timber will yield immediate economic                   
 benefits, not just on the timber side, but in less fire danger,               
 improved habitat, improved tourism and recreation potential.  So I            
 repeat don't separate please the salvage of the timber from these             
 other values.  Number five, what's the cost of doing nothing?  In             
 the classroom I had some fund with my students.  I told them I just           
 created Reeves number one law of policy formulation and it goes               
 very simply - it says that anyone who recommends a policy without             
 telling you what it will cost, that person is both reckless and               
 irresponsible.  The costs of uncontained beetle destruction and a             
 subsequent restoration and of loss of property and the cost of fire           
 suppression - these costs are enormous.  Sooner or later, it will             
 hit all of you in the pocketbook.  Here are some costs of doing               
 nothing.  Catastrophic wildfires, you saw some this year - earlier            
 this year.  Number two, destruction of private property, parks,               
 recreation areas, lower property values, higher home insurance                
 costs.  Number three, unprecedented damage to forest and watersheds           
 accompanied by the erosion of land and major reductions in fish and           
 wildlife populations.  Number four, foregone options to diversify             
 the income and employment basis of the state.  Just as a sidelight            
 for those of you who live in Anchorage, I saw a map this morning              
 which shows that if you have a fire starting up....                           
                                                                               
 TAPE 96-81, SIDE B                                                            
 Number 001                                                                    
                                                                               
 MR. REED CONTINUED:  ....there are no water mains to fight fire               
 with.  So it's gonna take the firemen - they're gonna have to do              
 some really inventive work to curtail a (indisc.) a fire of that              
 magnitude.  I'm not saying it's going to happen, but I'm saying the           
 risk is so real that something has to be done to do some work in              
 this populated area.  After all, half the people of the state live            
 in this region, within 50 miles of where we sit, so it must be very           
 important to you in the legislature.  Another loss is potential               
 state revenue.  You'll lose revenue from timber or other revenue              
 sales.  You'll spend more on clearing up the mess so that the                 
 revenue position of the state is very important to estimate.  We'll           
 see impairment Native lifestyles who depend for food chain and                
 other things on a healthy stable renewable resource.  You'll find             
 that you'll see damage to your international reputation as a wise             
 trustee of forest lands.  So the cost of doing nothing -- now I               
 said earlier that the cost of -- the guy who makes a recommendation           
 and doesn't tell you what it's gonna cost, he's a bad character.              
 So I'm gonna give you an idea of what it will cost to restore the             
 land.  These are just crude figures, but based on some experience             
 we've had in British Columbia you might start here with the cost of           
 $50 to $100 million a year to salvage the timber and replant and              
 restore those watersheds.  Fifty to $100 a year.  Remember the                
 forestry did not cause this problem, therefore, they should not be            
 expected to foot the entire bill for rehabilitation, that would be            
 absurd.  I've heard a dozen times since I came here, people say               
 well it wouldn't pay to rehabilitate because the timber you take              
 out is only worth $30 a ton and that won't pay the costs, per acre,           
 of restoring.  And I say that's -- you're asking the wrong                    
 question, not whether the forest salvage work would pay the entire            
 bill.  That's not the question, the question is whether when you              
 restore habitats and watersheds and viewscapes and you may have               
 your self a $100 million bill, but lets hope that in the process              
 you've got yourself some real handy revenue benefits on the other             
 side and that these people will help to pay for the restoration.              
 Onamisters(ph.) are strange people, particularly forest economists.           
 They've got this little narrow focus on the tree, the wood yard and           
 they refuse to look beyond that to the big picture, so I urge you             
 to look at the big picture as you think about restoration.  Item              
 number six in my list of eight, I've almost finished.  The goal               
 must be world-class stewardship, not gridlock.  Somehow this has to           
 be broken.  A full consensus may be entirely impossible.  All I can           
 say is that what I've seen happen in other parts of the world is              
 that the politicians finally say, "We can't wait anymore, we've got           
 to make a decision and we're not gonna get everybody to agree, but            
 if we can get 90 percent of them to agree, we'll go ahead."  It's             
 incumbent on us to leave our assets as citizens, and I speak as a             
 citizen of the world and a citizen, in some ways, of your own                 
 country because we're all in this together.  It's incumbent on us             
 to leave these assets in better shape than we found them.  I                  
 learned that from my father in a farm, I didn't learn this in                 
 forestry school, I never went to forestry school.  But I did learn            
 that stewardship of resources means you leave it better than you              
 found it.  You've got a big task here to leave it better than you             
 found it.  Number seven, the urgency of this is if I haven't                  
 conveyed to you a sense of urgency then I've failed.  I shouldn't             
 have come.  So then you go a strategic thinking and you begin say,            
 "What will we do next?"  And it's not that difficult.  The paper              
 that I have left with you will give you some of the things that               
 have to be done.  First of all, you treat the beetle as an                    
 emergency it truly is.  Second, you prepare a strategic plan, an              
 integrated one, comprehensive one.  Third, you establish specific             
 goals.  How much habitat do you want?  How many fish and wildlife?            
 What populations do you want?  What do you want out of the forest             
 economy?  Number four, you strengthen the mechanisms for                      
 cooperation and coordination.  This will mean streamlining your               
 regulatory system.  It'll mean doing something to improve the                 
 response time among the various state and federal agencies.  Number           
 five, we'll have to build constituency support, residents,                    
 visitors, nongovernment agencies, state and federal officials, the            
 whole works, students, educators.  Number six, examine the revenue            
 potential and the expenditure tracks.  Number seven, review                   
 legislation and regulation.  In the process, you'll pick some                 
 revisions perhaps and make specific people and specific functions             
 in state government accountable to achieve your goals in the                  
 strategic plan.  Number eight, address some information gaps.  You            
 already have more data than you need to make a strategic plan, so             
 I would urge you not to wait until you got perfect data.  You don't           
 need perfect data for a strategic plan.  Sometimes you need better            
 data out of the field to correct a certain problem, but there can             
 be no question that any longer delay would just simply add to the             
 catastrophic nature of your problem.  Nine, I would urge you                  
 activate some kind of a citizens force land advisory council to               
 deal with the epidemic, not confining it to simply a government               
 task force, but to make it a little broader, make sure the group is           
 small and give them four or five months to come up with a strategic           
 plan.  If you give them two years, they'll take it.  So give them             
 a small budget and tell them that you've got to have a quick                  
 answer.  When I ran the Canadian Forestry Service, I used to do               
 that.  They said, "Well we'll come back in six months and have some           
 meetings and tell you."  And I said, "You forgot, I have to find              
 money for you in the legislature - in the Parliament.  You will               
 have to come to me with an answer next week."  And they say, "Oh,             
 we can't do that."  And I'd say, "Fine, go away, leave (indisc.)              
 me, I'll write it myself."  Now I have a great firm belief that               
 sometimes the best people to  handle a thing like this are                    
 community leaders and legislators without technical academic                  
 credentials in hydrology or in forestry or entomology.  Sure you've           
 got to draw on these people, but perhaps it's not the best idea to            
 put them in charge of a strategic plan.  Number ten, table an                 
 annual report.  Make it mandatory, in your legislation, to table an           
 annual report on the status of Alaska's renewable resources every             
 year and it'll be addressed to the House and Senate and it'll be              
 distributed simultaneously to the public.  This could be - I say              
 again, could be done.  You could have your first preliminary done             
 be February of next year.  Strategic planning isn't a complicated             
 forecast.  The strategist simply looks at the problems and looks at           
 the direction you're headed and says, "Is that where you want to              
 go?"  That's strategic planning.  So, you have a chance to choose             
 your future here in Alaska.  It won't be the chance you had ten               
 years ago, but it's still very much a worthwhile choice and I thank           
 you.                                                                          
                                                                               
 Number 822                                                                    
                                                                               
 CO-CHAIRMAN GREEN:  Thank you very much, Les.  We have several                
 state presenters.  Is it the feeling of the committee that we                 
 should go right on through or answer some of the questions that may           
 have arisen now and then go to the state presenters.  I would                 
 prefer - it's a little after 2:00 now and I understand some of you            
 may have to leave, so I would like you to get all the data if you             
 can for the (indisc.).  Charge ahead, okay.                                   
                                                                               
 Number 847                                                                    
                                                                               
 UNIDENTIFIED SPEAKER:  I just wanted to ask a quick question.  Les,           
 you said that paper was here.  Is it in our packets or is it                  
 available?  Thanks.                                                           
                                                                               
 Number 904                                                                    
                                                                               
 CO-CHAIRMAN GREEN:  Okay, with that then we'll move on into the               
 state organizations and we would hope that we would hold our                  
 comments to somewhere between five and ten minutes.  I would like             
 to also -- I understand Cliff Eames is of the Alaska Center for the           
 Environment is here, yes.  And perhaps at the conclusion of the               
 other state agencies, you might like to make some comments as well            
 Cliff if that's alright.  We do have some room at the table here if           
 some of the people would like to come up.  First, I'd like to call            
 on Tom Boutin from teleconference.  Tom, are you still with us?               
                                                                               
 TOM BOUTIN, STATE FORESTER, DIVISION OF FORESTRY, DEPARTMENT OF               
 NATURAL RESOURCES:  I certainly am, Mr. Chairman.  Can you hear me            
 okay?                                                                         
                                                                               
 CO-CHAIRMAN GREEN:  Very well, sir.  Can everybody out there hear?            
 Go ahead.                                                                     
                                                                               
 MR. BOUTIN:  Okay, good, I've got some notes that I'll read from if           
 I might, Mr. Chairman.  I know once I get to talking, of course I             
 won't be able to hear you so I'll just go right on through and try            
 to go as quickly as I can.  For the record, Mr. Chairman, I'm Tom             
 Boutin, State Forester and Director of DNR, Division of Forestry.             
 Thanks for inviting me to talk with you today.  I want to                     
 specifically thank you for inviting all of the players to the                 
 table.  DNR asked that the United States Fish and Wildlife                    
 Service, the University, the Mental Health Land Trust and other               
 landowners be invited.  We also wanted the Department of Fish and             
 Game to come since we've looked to them for answers to questions              
 such as what will be the impact of the bark beetle on fish habitat,           
 game habitat and water quality; and we work with them to mitigate             
 the effects of logging on those values since logging followed by              
 reforestation is the only large-scale response that has been                  
 available to DNR.  Also, Fish and Game and the United States Fish             
 and Wildlife Service have participated in a group of scientists and           
 land managers called INFEST has has been looking at the infestation           
 and I think the perspective that Fish and Game has is important               
 here today.  DNR also wants to thank you for inviting the                     
 environmental community.  Environmental interests have had a key              
 role in determining what options are available to public land                 
 managers who are trying to respond to the bark beetle.  There's a             
 briefing paper in your packet that the the Division of Forestry               
 updated for this hearing.  We have briefing papers on most of our             
 initiatives and issues.  We began updating this one when we                   
 happened to learn that the Society of American Foresters had                  
 planned meetings on this issue.  The state of Alaska owns about 2.1           
 million acres of land in the Kenai Peninsula Borough.  Half of that           
 is in state parks, refuges and critical habitat areas.  Of the 1.1            
 million acres that is in the public domain, 449,000 acres are                 
 forested land.  Of that 449,000, over half is west of Cook Inlet              
 and 201,000 is on the Kenai Peninsula and Kalgin Island.  Most of             
 that forested land is heavily impacted by the spruce bark beetle.             
 The goals that DNR has had in its bark beetle program are to                  
 accelerate reforestation, maintain diverse forest types and ages to           
 support a wide variety of public uses, and capture the economic               
 value from infested trees before they decay.  The key feature of              
 our program has been timber sales.  Out of the 201,000 acres on the           
 Kenai Peninsula and Kalgin Island, timber sales for fiscal years              
 94, 95 and 96, totaled about 8,750 acres in 25 sales.  Our 5 Year             
 Sale Schedule for the Kenai Borough proposes sales on about 28,000            
 acres.  Of that acreage, 19,000 is on the Kenai Peninsula.  Prior             
 to 1994, DNR had sold an average of 200 acres of timber sales, per            
 year, on the Kenai Peninsula.  In timber volume we've sold between            
 30 and 40 million feet of salvaged timber on the Kenai since 1994,            
 up from a program of less than one million feet per year.  This               
 sort of increase in a public timber sale program has required                 
 additional public process.  We asked Borough Mayor Don Gilman to              
 put together a panel of citizens to review our 5 Year Schedule.  We           
 committed up front to complying with every recommendation upon                
 which the panel could reach a consensus and there were 18 consensus           
 recommendations.  We addressed concerns underlying those                      
 recommendations on which there was no consensus as best as we                 
 could.  We transferred money to the Department of Fish and Game so            
 a habitat biologist could be on the ground with us while we did our           
 silvicultural prescriptions and the timber sale layout.  We                   
 borrowed a silviculturist from the United States Forest Service.              
 We committed to having a public meeting in communities near every             
 timber sale and the habitat biologist and the silviculturist came             
 to every one of those meetings and explained our program.  We met             
 with media in Anchorage and on the Peninsula.  We had most of the             
 Peninsula media out on different timber sales.  When a large sale,            
 Kalgin Island, received no bids, we got together with the timber              
 industry to design a sale that would sell and then it did sell.  We           
 asked the United States Forest to bring research people up from               
 Portland to record how timber in different stages of beetle-caused            
 decay held up for conversation to lumber, chips and veneer.  We               
 provided the logs and staff for the recovery study and passed the             
 study results on to the industry and have used them in our sale               
 appraisals.  We have programs that do not include timber sales and            
 we have also used those to respond to the bark beetle.  Our forest            
 stewardship program helps private landowners determine objectives             
 for their forested land and what must be done to meet those                   
 objectives.  As you might imagine, the bark beetle is a major                 
 feature of that program on the Kenai Peninsula.  Our urban and                
 community forestry program holds meetings and workshops, and                  
 distributes information for homeowners to use in combating the                
 beetle.  Our fire prevention program has held numerous defensible             
 space workshops for rural homeowners on the peninsula.  We produced           
 a paper for the tour companies on the Kenai Peninsula to use to               
 explain the beetle epidemic to their customers.  With this record,            
 Mr. Chairman, you could think that everyone cheer us on, but there            
 has been some unhappiness.  On September 22, 1994, Trustees for               
 Alaska and four other groups appealed our 5 Year Schedule in                  
 Anchorage Superior Court.  The case is known as Alaska Sportfishing          
 v. DNR.  For a period of time, the plaintiffs asked for a stay on            
 each of our timber sale auctions, but all of the stays were denied.           
 I think there were ten sales altogether for which the judge said we           
 had done a good job and that the plaintiffs were unlikely to win on           
 the merits of their case.  Individual sales have been added to the            
 complaint and the list of appellants has expanded to nine groups.             
 For the first 18 months, there was constant churning of motions and           
 filings; DNR had to catalog, index and file over 10,000 pages of              
 documents.  On June 5, 1995, the court ruled in DNR's favor on a              
 motion to recover expenses in the case and Trustees sent a check              
 for good funds.  Final oral arguments are now scheduled for next              
 month and a decision could come this year.  We have also had a                
 number of administrative appeals of our Kenai Peninsula timber                
 sales, which have all been denied, and one appeal of our coastal              
 consistency funding on the Falls Creek Sale, for which the Coastal            
 Policy Council ruled in DNR's favor.  I cannot honestly say that              
 these administrative and judicial appeals have materially delayed             
 any timber sales or our program has a whole but we certainly have             
 spent time on them that would have been spent on another part of              
 the program had they not come.  Mr. Chairman, I think DNR has                 
 figured out how to responsibly and efficiently meet the new                   
 statutory public process requirements that came at the same time as           
 the update of the Forest Resources and Practices Act.  I don't                
 think anyone in the timber industry anyway believes that DNR could            
 be doing more to respond to the bark beetle using what we have for            
 people and money.  But I want you to know that 5 Year Schedules,              
 Forest Land Use Plans, which are required for every timber sale,              
 public meetings and field trips, appeals and litigation amount to             
 significant expense for the sale of dead and dying spruce trees               
 that are short, sparse, small and a great distance from much of a             
 market to begin with.  I need to mention the market from a land               
 manager's perspective.  Jack Phelps will talk about the market in             
 some detail, and I share his long-term optimism, but right now                
 owners of low grade timber are suffering.  Pulplog prices have                
 dropped from as much as 35 to as much as 75 percent since last                
 fall.  Companies that were actively buying Alaska wood for Lower 48           
 pulp mills have gone home.  The remaining Alaska pulp mill is                 
 reported to be in very serious trouble.  DNR has had a number of              
 timber sale auctions at which there were no bids.  In the Interior,           
 those sales seem to be picked up later, but beetle-killed timber              
 sales in Haines are not selling and one sale on the Kenai did not             
 sell.  Mr. Chairman, DNR's timber sale program, as a whole, returns           
 more money to the state than it costs.  The state has no deficit              
 timber sale program.  But salvage sales do not usually pay for                
 themselves.  In particular, Kenai sales only pay for part of the              
 reforestation costs and usually do not pay for all of their                   
 preparation and administration.  Reforestation of salvage sales is            
 not required by the Forest Resources and Practices Act and private            
 landowners requested and DNR recently completed regulations that              
 set out the procedure for exempting salvage sales from                        
 reforestation.  But DNR has committed to reforesting all timber               
 sales to the stocking standards in the law even in the case of                
 salvage sales.  On the Kenai Peninsula, we have one buyer but all             
 landowners are very fortunate to have that one buyer because if               
 that firm had not developed their market, I doubt that anyone would           
 have done so and the market would have completely shut us down at             
 this time.  As it is, I know of a number of firms in Southeast and            
 in Southcentral that have extraordinarily large decks of low-grade            
 logs.  In this sort of market, Lower 48 pulp mills would not give             
 a new supplier an order at any price.  markets always change, but             
 I don't know that we can find a good market in time for much of the           
 dead and dying spruce that can be offered.  I would like to cover             
 just a few more topics.  One is fire and the bark beetle.  While              
 the situation is not simple at all, and you have probably heard               
 that, there is one simple fact.  The Miller's Reach fire, the fire            
 in Big Lake last June, was in no way involved with the spruce bark            
 beetle.  The spruce bark beetle was not a feature of that fire.               
 Our briefing paper includes an attachment that describes the                  
 wildfire implications of the bark beetle epidemic.  I also want to            
 make it clear that DNR has not accomplished this alone.  The Alaska           
 Legislature enacted HB 121, sponsored by Representative Bill                  
 Williams, to allow expedited sale of salvaged timber.  HB 212,                
 sponsored by Representative Jeannette James, was thoroughly                   
 improved by the Resources Committees and allows a more expedited              
 public process.  Both of these bills were signed into law by                  
 Governor Knowles.  Governor Knowles put money for salvage timber              
 sales on the Kenai Peninsula into his capital budget.  Governor               
 Knowles' office has helped DNR work out some timber sale issues in            
 a way that allowed us to proceed when some of those same issues on            
 earlier timber sales had come to wreckage three years ago.  We now            
 get together in the Governor's office and work these things out.              
 The United States Forest Service has given DNR money and expertise            
 that it could not have found any other place.  Funding to do the              
 job came along with the Forest Service silviculturist that I                  
 mentioned a moment ago.  That silviculturist went right to court              
 with us and you can't ask for a better partner than that.  The                
 forest stewardship and urban and community forestry programs are              
 totally federally funded.  The Alaska Department of Fish and Game             
 has helped at critical moments.  Commissioner Frank Rue weighed in            
 on our Falls Creek timber sale and as a large sale - largest                  
 salvage sale the state has ever had near Ninilchik on our Falls               
 Creek timber sale in a way that allowed it to proceed.  He told the           
 very new Administration that sale had been done well and should               
 proceed.  Therefore, the appeal sitting on my then new boss' desk,            
 John Shively, was denied and I think Trustees were put on notice              
 that what they had begun in court would find its conclusion in                
 court and I hope you can appreciate how important that was at that            
 point in time.  The timber industry, and particularly the Alaska              
 Forest Association, has provided expertise, support and patience,             
 especially patience perhaps for timber sale program.  They have               
 provided affidavits on a moment's notice time after time to help in           
 our defense against Trustees.  They've stood with us on our                   
 initiative to move to operator reforestation with our best                    
 customer, the firm that I mentioned had found a market for Kenai              
 timber, showing all foresters some innovation in meeting                      
 reforestation requirements.  I need to also mention that that firm            
 is reforesting areas that it is not required to reforest even while           
 experiencing a severe market downturn.  When a judge makes an                 
 example out of a timber operator that showed a wholesale disregard            
 for the law and the environment I think that's great.  But do I               
 cringe when the media beats up the timber industry in general                 
 because I think that this firm that I'm talking about, a firm which           
 found a market for dying timber that we public land managers are              
 stuck with, and then does reforestation on the Kenai out of its own           
 profits.  The DNR commissioner and his office have provided                   
 constant support for our Kenai program.  Deputy Commissioner Marty            
 Rutherford has traveled to countless late night public meetings on            
 the Kenai to explain our timber sales.  I've seen her bring her               
 baby to more than one all day Saturday meeting down there.  The               
 Department of Law has been an exceptional partner in our timber               
 sale program.  The attorney assigned to us is a professional                  
 forester and he worked in the woods before going to law school.               
 Our foresters believe in him and he works at least as hard as we              
 do.  Last spring, we gave the Attorney General a gallon of maple              
 syrup and told him that the Division of Forestry would see that he            
 never runs out so long as this attorney is assigned to us.                    
 Finally, I want to say I am proud of the division.  We've gone from           
 200 acres a year to several thousand while being sued and sometimes           
 beat up in different places.  I think we've lost six or seven                 
 foresters to budget cuts during that period of time, since fiscal             
 year 94, while at the same time forest practices on private land              
 has required greater and greater amounts of work.  During the same            
 period we have improved our documents to where I think they are               
 becoming both entirely responsive and also perhaps bullet proof.              
 We'll see what the judge tells Trustees and us later this fall.               
 There are some things that we have been unable to do.  One of those           
 is that we have not been able to find a wildlife manager who                  
 believes that the spruce bark beetle epidemic will be detrimental             
 to wildlife in the long term.  Likewise, we have not been able to             
 find a fisheries biologist that believes that the epidemic will               
 have a long term impact on fish habitat or water quality.  Also,              
 the wildlife managers and fisheries biologists we know are                    
 reluctant to say that logging, even if done well, will have fewer             
 impacts than letting the epidemic run its course.  I have an                  
 excerpt here that I want to read.  It comes from a memo that Fish             
 and Game Commissioner Frank Rue wrote to the Governor last July,              
 and while it's probably not good to take it out of context, I think           
 it summarizes very well what fish and wildlife managers have been             
 telling foresters about the beetle epidemic on the Kenai for some             
 time.  Commissioner Rue wrote:  "However, from a fish and wildlife            
 perspective, the loss of large mature spruce trees will not have an           
 impact on fish and wildlife species of primary interest to                    
 Alaskans.  Fire and bark beetles are an integral part of the boreal           
 forest and the animals that live there depend on the periodic                 
 renewal of the forest.  We are not aware of any state strategy to             
 deal with bark beetles, other than logging the trees before or                
 after they are dead.  However, this has its own problems."  Mr.               
 Chairman, I think you can see why DNR has not relied on impacts to            
 fisheries or water quality, lost wildlife habitat, or for that                
 matter lost tourism dollars, danger to recreation sites and real              
 estate devaluation to justify our Kenai salvage program.  DNR                 
 produces net revenues as well as jobs from state resources, but it            
 has to deal in the real world of appeals and litigation.  If we               
 don't have at least a consensus among credible professionals for              
 what we propose then we head in another direction.  As stated a               
 moment ago and at the top of our briefing paper, our goals for the            
 state's bark beetle program are to accelerate reforestation,                  
 maintain diverse forest types and ages to support a wide variety of           
 public uses, and capture economic value from infested trees before            
 they decay.  I'll wrap this up, Mr. Chairman, by telling you where            
 DNR will go from here.  We'll continue to prepare and offer the               
 sales in the 5 Year Schedule of Timber Sales as the budget permits            
 so long as there are buyers for our sales.  That includes the Kenai           
 Peninsula salvage sales in the Governor's capital budget that was             
 signed into law last summer.  We will continue to reforest all of             
 our timber sales including salvage sales.  At the same time, the              
 prospects for doing as much timber production in the future as we             
 have done in the past are quite small.  As I stated earlier, we've            
 lost six foresters to budget cuts since fiscal year 94 when our               
 Kenai salvage program began.  we lost a total of seven positions,             
 not all of them foresters, in this fiscal year alone.  At the                 
 present time, I've been directed by the legislature to come up with           
 a way to replace Division of Forestry foresters doing Forest                  
 Practices Act inspections with a program in which timber landowners           
 would hire certified consultants, and the budget realities that               
 state government faces dictate these sorts of examinations even if            
 I had not been specifically directed to do so by the legislature.             
 The estimated five or six forester positions that we would be able            
 eliminate, all but one of them filled right now, once the program             
 of certified consultants is up and running, also lay out timber               
 sales from Ketchikan to Kenai.  So our timber sale program,                   
 including Kenai salvage sales, is definitely not on the increase.             
 We'll continue to participate with the United States Forest Service           
 in their annual forest insect and disease survey.  We will continue           
 to contribute to the group of scientists called INFEST that is                
 looking at the bark beetle epidemic from an historic and scientific           
 perspective.  We will continue to distribute information to                   
 homeowners and landowners on bark beetle remediation and defensible           
 space.  These efforts are pretty much all federal funds so I cannot           
 choose to cut them instead of timber sales.  Over the years, I've             
 talked to many groups in public meetings about the beetle                     
 infestation and our program - the Exxon Valdez Oil Spill Trustee              
 Council, the Resource Development Council, the Board of Fisheries,            
 various chambers of commerce and many others - and I'll continue to           
 do that.  We'll continue to keep the Board of Forestry involved.              
 We'll continue to defend the state vigorously in court.  Finally,             
 Mr. Chairman, DNR also enforces the Forest Practices Act on private           
 and municipal land, along with our state land responsibilities for            
 the private landowner response to the spruce bark beetle has                  
 brought an increased work requirement and we'll continue to live up           
 to the law on that.  Thank you, Mr. Chairman, I'll be happy to                
 answer any questions you might have at any time.                              
                                                                               
 Number 2902                                                                   
                                                                               
 CO-CHAIRMAN GREEN:  Thank you Tom.  You bring a certainly different           
 perspective than we've heard earlier.  You mentioned a couple of              
 things that perked my interest, the fact that you're schedule is              
 somewhat predicated on a buyer and the ability to escape the stays            
 of the Alaska Center for the Environment.  You mentioned that the             
 ADF&G commissioner had indicated that there was no adverse effect             
 on habitat.  And I'm wondering on that basis if Mr. Trasky, would             
 you mind going next to kind of keep that thought in mind?  And then           
 we'll continue down as we've got them listed.  Certainly, I hate to           
 change that, but it seems like that's a kind of a package.                    
                                                                               
 Number 3002                                                                   
                                                                               
 LANCE TRASKY, SUPERVISOR, SOUTHCENTRAL REGION, DIVISION OF HABITAT            
 AND RESTORATION, DEPARTMENT OF FISH AND GAME:  Mr. Chairman,                  
 members of the committee, my name is Lance Trasky.  I'm the                   
 Regional Supervisor for the Habitat Restoration Division,                     
 Department of Fish and Game, and our division has primary                     
 responsibility for forest practices and, as Tom Boutin pointed out,           
 we work very closely with them in logging bark beetle issues.  I              
 guess the question that I was called here to answer today is, "How            
 was the spruce beetle outbreak affect fish and wildlife populations           
 in Alaska.  And we've really done -- the department has four things           
 to look at that.  First, we searched the vast body of scientific              
 literature for information on the impacts of spruce bark beetles              
 and other similar insects on fish and wildlife populations.  We did           
 this through a computerized search of all the national biological             
 data bases, so it was very extensive.  As you are aware, the                  
 department has conducted long-term surveys of fish and wildlife               
 populations throughout the state.  Monitored these populations very           
 carefully because that's how we managed the harvest, and so we have           
 records in areas where we've had spark before and after these                 
 spruce bark beetle outbreaks have occurred in these areas.  Third,            
 we've looked at the historical literature on spruce bark beetle               
 outbreaks in Alaska and as probably most people are aware, there              
 has been thousands of them over the years and in particular there             
 has been some pretty severe ones on the Kenai Peninsula and in the            
 Mat-Su Valley in the early 1900s.  The other things is we've                  
 considered, you know, what the experts within the department know             
 about the life history of the animals that Alaskans are really                
 interested in how these intuitively might be effected by loss of              
 mature spruce trees.  What we found is that there was really no               
 scientific information in the literature to indicate that spruce              
 bark beetles or other similar insects have caused declines in fish            
 and wildlife populations in interest of Alaskans.  And I have to              
 define are the ones that are primary interest Alaskans are moose,             
 black bear, brown bear, salmon and some of the recreational fish              
 species.  Certainly, species that are dependent on mature spruce              
 trees like pine squirrels, spruce hens, marble merlots(ph.) are               
 gonna be harmed by the loss of mature spruce trees.  No question              
 about that, but fortunately those are not of primary interest to              
 Alaskans and we don't really manage them.  So there are no ADF&G              
 surveys of data that we have in these areas where the beetles have            
 taken their toll on spruce trees which indicates that have been any           
 declines in salmon, moose and bears in the areas effected.                    
 Actually, because of the very good weather conditions they probably           
 favor the spruce, actually I think our salmon populations have been           
 near historic records.  And brown bear are declining on the Kenai             
 Peninsula, but that's primarily because of defense of life and                
 property.  There is so much habitat now that there is more bears              
 killed because of defense of property that are produced.  So they             
 are declining, but it has nothing to do with spruce bark beetles.             
 We have also looked at historic mostly Forest Service reports from            
 the early 1900s on very large bark beetle outbreaks on the Kenai              
 Peninsula and I think you may have heard a little bit about this in           
 Kenai.  There was a report that we have, and I have some copies               
 with me if you'd be interested then, most of the trees in the Homer           
 area were dead by 1900 from an outbreak that occurred in the mid              
 1800s on both sides of the bay.  Probably a lot of us are familiar            
 with what it looks like before the latest bark beetle outbreak.  So           
 there was obviously a lot of recovery during that period of time              
 and there is also records from the stumps down there about when               
 diseases occurred, so there is some information on that.  There was           
 also a very interesting outbreak in the valley, in the early 1900s,           
 that centered in the Willow Mountain area.  It was very widespread            
 and the forester predicted that it might wipe out all the spruce              
 trees in the valley.  Of course it didn't do that, but one                    
 interesting effect of it was it was centered on Willow Mountain and           
 what happened on Willow Mountain is it did eliminate all the spruce           
 trees.  Willow Mountain came back in almost complete willow cover             
 and as a result it's probably some of the moose habitat in the                
 state, and the legislature actually designated it as a critical               
 habitat area because of the importance of that area for moose.  So            
 some species such as moose depend on deciduous vegetation, not                
 spruce, actually could benefit from something like this on certain            
 sites.  It depends on the site, as the forester said, what you get            
 back.  As I said, the loss of mature spruce trees will likely favor           
 species which thrive on successional change and there is a lot of             
 species such as moose, black bear, rabbits, ruffle grouse, that do            
 benefit from this.  And probably from the healthiest thing from a             
 fish and wildlife perspective, actually have a mosaic of a forest             
 where you have everything from early successional to mature trees             
 and patches of this so the animals can move around.  They have the            
 edge effect.  It gives your maximum production most long-term                 
 stability.  So that's, from our perspective, that's the best                  
 situation.  The spruce bark beetle epidemic will harm species, as             
 I said, like certain birds, pine squirrels, marbled merlots, and as           
 far as fish like salmon and stuff, it's probably a wash.  If you              
 just -- without any other effects, the loss of the trees, the                 
 riparian zones are important, but the vegetation there will                   
 probably still function and filter out cell turbidity and                     
 pollutants.  We will get probably a lot big slug of large woody               
 debris in streams.  We would like to see it go in over a long time,           
 but a lot of that wood in the smaller streams we found will stay              
 there 100 to 150 years if it's not blown out in bigger steams and             
 that comes from the U.S. Forest Service.  So that's probably not a            
 disaster.  We understand there is a concern about changes in                  
 hydrology.  That can happen when you move the forest cover within             
 a drainage that you can see changes in hydrology.  I think, you               
 know, usually that's associated with extensive clear-cut logging              
 where you get that sort of thing, but I suppose the bark beetles              
 can have a similar effect.  We have been monitoring the Kenai                 
 River.  We haven't seen anything like that happen, but probably my            
 guess is that the natural fluctuations of (indisc.) we've seen in             
 recent years would mask that anyways unless you just removed all              
 the vegetation from the hillside.  So as Tom pointed out, we have             
 been working with the Division of Forestry in laying out timber               
 sales.  Our objective there has been to protect fish streams on the           
 Kenai, because of the value of the fish produced there and also               
 there has been some opportunities to improve moose brows by                   
 encouraging birch, cottonwood, those species and we've been pretty            
 satisfied.  Mike Weaver and Steve Albert that have been working on            
 those are here today.  I guess in closing, I'd say if the                     
 department found and found indications that the spruce bark beetles           
 were harming fish and wildlife of interest to Alaskans that we'd be           
 the first ones to squawk.  We'd be the first ones to ask, you know,           
 somebody to do something about it if there was something that would           
 improve the situation.  But to date, we haven't seen a serious                
 problem and we don't know of any solutions, you know, that would              
 make the situation better.  So anyways, I'll answer any questions             
 you have.  I hope that's -- covered most of the bases here.                   
                                                                               
 Number 3718                                                                   
                                                                               
 CO-CHAIRMAN GREEN:  Well I appreciate that Les.  Thank you very               
 much.  Next we have Greg Encelewski, Ninilchik Native Corporation.            
                                                                               
 Number 3728                                                                   
                                                                               
 GREG ENCELEWSKI, ASSISTANT TO THE PRESIDENT, NINILCHIK NATIVE                 
 CORPORATION:  Hi, I'm Greg Encelewski.                                        
                                                                               
 CO-CHAIRMAN GREEN:  Do you want to come up so that the people on              
 teleconference can be sure and hear you.                                      
                                                                               
 MR. ENCELEWSKI:  Sure.  It's an honor to be able to speak here                
 today.  Yes, I am with Ninilchik Native Corporation.  I serve as              
 the assistant to the president.  And as private landowners on the             
 Kenai Peninsula, no one wants - no one more than us wants to see              
 healthy trees on our lands and that's our goal.  However, we have             
 different response to the spruce bark beetle than the state at                
 large has.  We were aggressively harvesting our lands and pursuing            
 timber harvest and trying to reap economic value off of these dead            
 trees and in the process were having improvements put upon our                
 lands in the way of roads and access to our lands and that will               
 serve well for future things like hunting and access there.  We               
 also have been able to put shareholders to work and local people to           
 work and help out the local economy, and of course the stumpage               
 value that's derived from the saw logs and the pulp.  Ninilchik               
 Native Corporation has approximately 100,000 acres that have been             
 patented to it and, of that, roughly 70,000 is on the east side and           
 30,000 on the west side of Cook Inlet and we're still 65 to 70,000            
 acres shy of our entitlement that still hasn't been conveyed to us.           
 Presently, we have actual ownership to about 65,000 acres due to              
 some buying and selling and distributing some 40 acre parcels to              
 our shareholders, and of that 65,000 acres I'm told that 50,000               
 acres of it has been infested by the beetle - so an astronomical              
 percentage.  And so we believe that the best approach is to do what           
 we can to get some economic value out of that and, obviously, we              
 want to see new trees come back.  We have the greatest vested                 
 interest being the landowner.  And one of the things that has                 
 helped us to be effective is having actually - having the presence            
 down there and having people in the field to tour the logging                 
 operations every day, drive the roads, inspect things, and that has           
 helped us in the areas of quality roads and cleanup and...  Hasn't            
 always gone perfectly, there is a learning curve, but over time               
 we've learned more and more and so we're getting better.  Also,               
 there is the Forest Practices Act which has specific requirements             
 regarding reforestation and stream side buffers.  And so not only             
 do we have our own guys who are patrolling and monitoring things,             
 but we have the different state agencies reviewing the sales and              
 going on inspections.  Another thing that we have noticed                     
 differently is that we have actually had timber buyers literally              
 knocking down our door to buy our timber.  We've had a tremendous             
 deal of interest.  We manage the large timber tracks of Cook Inlet            
 Region, Incorporated, and manage and market their timber and have             
 noticed an incredible amount of interest in purchasing our sawlogs            
 and pulp.  And we've also noticed that a lot of our logging areas             
 end up looking quite well and are not unsightly.  Just this fall,             
 I was moose hunting and driving through many of those roads and               
 they're not an unsightly site.  We engage in what's referred to I             
 believe is selective harvesting.  We cut down to a 6-inch top.  And           
 then in CIRI's case they have with their high value recreational              
 lands, they only cut down to a 9-inch top, and then in both cases             
 we leave two seed trees of 12-inch DBH.  However, the beetle has              
 absolutely no remorse.  The beetle kills the two seed trees that              
 are left.  The beetle kills the trees in the high value recreation            
 areas where we leave the trees at 9-inch DBH or less.  The beetle             
 kills those even under 6 inches, the beetle kills those trees as              
 well.  As far as reforestation goes what we've noticed is the areas           
 that have where the ground has been disturbed by the different -              
 whether it's machinery or logging equipment in there, those are the           
 areas that tend to have the best results as far as regrowth, that             
 the natural disturbance of the soil and turning up the nutrients              
 ends up working best.  As an example, the summer logging tends to             
 have better results as far as regrowth because the tires or                   
 whatever it is, the equipment can penetrate the soil whereas winter           
 logging we haven't had near the success in regrowth.  However, we             
 do have loggers go back in the summer and scarify those areas that            
 were winter logged.  We do take part in seed cone collections and             
 have a nursery in Washington that has a stock - a seed source                 
 stock.  And so anyway, we believe that this is the best course of             
 action and it's providing - it's providing jobs that were able to -           
 - one of the few Native corporations in Alaska that are able to               
 provide dividends to their shareholders due to this and -- so                 
 anyway, I'll close with that.                                                 
                                                                               
 Number 4404                                                                   
                                                                               
 CO-CHAIRMAN GREEN:  Thank you very much Greg.  The next person we             
 have to hear from is Larry Hudson, U.S. Forest Service.                       
                                                                               
 Number 4411                                                                   
                                                                               
 JIM CAPLAN, DEPUTY REGIONAL FORESTER, NATURAL RESOURCES, U.S.                 
 FOREST SERVICE:  Mr. Chairman, my name is Jim Caplan.  I'll be                
 taking Mr. Hudson's place today.                                              
                                                                               
 CO-CHAIRMAN GREEN:  Could you spell your last name?                           
                                                                               
 MR. CAPLAN:  Certainly, it's C a p l a n.                                     
                                                                               
 CO-CHAIRMAN GREEN:  Just like it sounds.                                      
                                                                               
 MR. CAPLAN:  Yup.                                                             
                                                                               
 CO-CHAIRMAN GREEN:  Thank you.                                                
                                                                               
 MR. CAPLAN:  Although frequently spelled with a K.                            
                                                                               
 CO-CHAIRMAN GREEN:  Okay.                                                     
                                                                               
 Number 4426                                                                   
                                                                               
 MR. CAPLAN:  Larry was kind enough to take my place on the trip to            
 the Kenai yesterday, so I'm taking his here today.  I'm the Deputy            
 Regional Forester for Natural Resources with the Forest Service               
 here in Alaska.  I want to thank you for the opportunity, you Mr.             
 Chairman and the members, for being able to appear here today and             
 talk about the Forest Service and it's management of the national             
 forest here with respect to the beetle.  You have already heard               
 from many people, and I won't repeat, the contributions that my               
 agency has made since after the turn of the century with respect to           
 this infestation.  It's been a fact of life for us beginning when             
 we arrived here as managers in 1902, and continues on now.  It has            
 always been a considerable concern to foresters and forest managers           
 here.  You've heard about he State Private Forestry Division and              
 it's contributions to the state - money that's put forth for state            
 programs.  Also how entomologists with State and Private Forestry,            
 including Dr. Holstein and our Research Division, has been                    
 responsible for much of the information that we have available to             
 this when we're trying to manage the forest with respect to the               
 beetle.  The national forests in Alaska are at one time national              
 forests, they are Alaskan forests and they are community forests.             
 We respect our relationship at all those levels and that forest               
 health has long been an issue, nationally, that the Forest Service            
 has taken up and has lead the discussion, along with a lot of other           
 interested parties, about how to manage forests into a certain                
 condition of health.  Health is defined as the ability to heal, and           
 thus, in many cases what we talk about is how we can restore an               
 ecosystem or a forest to a practical level where it is responsive             
 to management over time and can respond well from devastation.  You           
 hear mixed views about the health of the forests in Alaska,                   
 particularly when you see an infestation like the beetle....                  
                                                                               
 TAPE 96-82, SIDE A                                                            
 Number 001                                                                    
                                                                               
 MR. CAPLAN:  ...jump up and run a marathon today although a few               
 folks here look that way.  And I guess the story to be told there             
 is that we have to decide, collectively, as national forest - as              
 Alaska's national forest and it's community forests of what state             
 of health we want for these forests.  The Forest Service frequently           
 practices various kinds of removal of trees and recreation areas,             
 for instance, in order to maintain public health and safety in                
 those recreation areas.  Our campgrounds and so forth regularly get           
 silvicultural treatment to remove dead trees or beetle affected               
 trees.  This is because we are managing them for a state of health            
 that respects the public and its need to be safe while it                     
 recreates.  When we get into a broader applications, frequently we            
 find that people in the state of Alaska, national organizations and           
 even some community leaders oppose large scale treatment of forests           
 to remove the beetle and beetle kill timber.  You certainly find              
 this all across the United States, so it's not peculiar to Alaska,            
 but it's certainly a part of the condition of managing forests                
 here.  And failing a lot of agreement in our communities and among            
 the many professions that now are involved in the management of               
 national forests and the ecologists, various kinds of forest                  
 managers, silviculturists, entomologists and others, but failing              
 the ability to bring a consensus to how that should be managed at             
 the community level, we find it very difficult to proceed with                
 large scale applications.  Many people are concerned about what               
 they see as a penetration of wild lands by roads and by various               
 kinds of ground disturbing activities.  I don't expect that to                
 abate unless we see leadership coming from many sectors of our                
 society in trying to deal with this problem.  On the Chugach                  
 National Forest, which is where a majority of our management occurs           
 that's connected with the beetle, we've offered several timber                
 sales in the last year and some of that work has been done.  Other            
 sale offerings were withdrawn when they were appealed and then when           
 we realized that national direction had been put forth by the                 
 secretary of Agriculture, which limited our options at least until            
 the first of the year.  We intend, as an agency, to reoffer some if           
 not all of that timber volume after the first of the year, but                
 frankly we too are confounded to some degree by a lack of a                   
 receptive market for that product should it be offered, we'll see.            
 In the past we've offered and had it not sold, since that's been              
 our method for gaining removal of the trees were, you know, kind of           
 stuck if we don't have somebody who shows up and bids on it.  One             
 of our success stories, and I think it's a notable one, is the area           
 around Cooper Landing and that was a joint effort between state and           
 private forestry in the national forest system folks -- and they              
 gained a great deal of community support for treatment in that                
 area, worked closely with the community to get what they wanted out           
 of the local forest and, in fact, I think did a very fine job of              
 treating that area.  That model I think is one that we should study           
 for the possibilities that it might offer elsewhere.  Those are my            
 remarks today, Mr. Chairman, thank you.                                       
                                                                               
 Number 406                                                                    
                                                                               
 CO-CHAIRMAN GREEN:  Thank you Jim, appreciate that very much.  We             
 also have from the Alaska Cooperative Extension Mike Fastabent.               
 Would you care to make some comments?                                         
                                                                               
 Number 419                                                                    
                                                                               
 MIKE FASTABENT, UNIVERSITY OF ALASKA, FAIRBANKS - ALASKA                      
 COOPERATIVE EXTENSION SERVICE:  Sure.  This spelling really isn't             
 close.                                                                        
                                                                               
 CO-CHAIRMAN GREEN:  Oh it isn't.  Is the pronunciation even close?            
                                                                               
 MR. FASTABENT:  The pronunciation is right.                                   
                                                                               
 CO-CHAIRMAN GREEN:  How do you spell it?                                      
                                                                               
 MR. FASTABENT:  F a s t a b e n t - Fastabent.  Again, it's a real            
 honor to be here.  It's a really unique experience for me as I have           
 never been involved in something like this before.  I work for the            
 Alaska Cooperative Extension which is the educational outreach                
 branch, University of Alaska, Fairbanks.                                      
                                                                               
 Number 457                                                                    
                                                                               
 CO-CHAIRMAN GREEN:  Excuse me just one moment.  You speak rather              
 softly.  Can the teleconference sites hear.                                   
                                                                               
 Number 503                                                                    
 SENATOR ROBIN TAYLOR:  Mr. Chairman, this is Senator Taylor down in           
 Sitka and he's really hard to hear down here.  He's breaking up               
 pretty badly.  If you could, when this witness is done I'd like to            
 make a comment or two as I'm gonna have to leave.                             
                                                                               
 Number 417                                                                    
                                                                               
 CO-CHAIRMAN GREEN:  If you could be brief sir.                                
                                                                               
 SENATOR TAYLOR:  Just after the witness will be fine.                         
                                                                               
 Number 520                                                                    
                                                                               
 MR. FASTABENT:  I'll try to be brief, I know we're running a little           
 late.  My position is educational outreach.  It was created - is              
 funded by State and Private Forestry and what I do is just that -             
 educational outreach to private landowners on how to manage for               
 spruce beetle.  Whether or not it's mitigated a disturbance that's            
 actually occurring on their property to try and protect - increase            
 the health of their trees keeps beetles from coming into their                
 property.  There has been a huge public response to this                      
 educational outreach service.  Over the past 15 months we've gotten           
 over 3,000 phone calls at the extension office.  We had dozens of             
 classes.  There is a huge educational need of the public who is               
 very well aware of the spruce beetle activity that's going on.  I             
 also do site visits.  I work with landowners a lot and I guess what           
 I can bring to the table today that is different than what you've             
 heard is just the concerns that I'm hearing from the public.                  
 Admittedly, the public that is contacting me is biased in that                
 they're proactive and that they want to be doing something, but I'm           
 working with an awful lot of people that are spending an awful lot            
 of time, an awful lot of energy, in some cases an awful lot of                
 money, because to the private landowner it doesn't matter whether             
 this is a natural disturbance, it doesn't matter whether or not any           
 of this other stuff -- they see it come on their property, it has             
 definite negative effects.  Losing large spruce trees on private              
 property can affect everything from real estate values.  It becomes           
 hazard trees, not to mention that many people have great emotional            
 attachments to the larger trees.  A lot of people have built their            
 houses, designed their property around existing large spruce trees.           
 They see this as nothing less than disaster that's coming.  And the           
 concerns that I'm getting is these folks are spending their own               
 time, their own money, their own energy, to deal with this and yet            
 they look around and they see the spruce bark beetle sort of                  
 walking unhindered across public lands right on to their private              
 properties.  They realize that these beetles did not start on                 
 private land, they started on public land and marched across any              
 number of overlapping land ownerships.  They're wondering why if              
 they recognize it on their property as a disturbance why there has            
 been no activity against it especially in the more urban rural                
 interface where all of the different types of concerns that are               
 raised about putting in access into roadless areas or go into                 
 pristine areas really don't apply at all.  We have access in the              
 Anchorage bowl.  There is no place here that we could not get to              
 and treat that would cause a large disturbance to get to.  They               
 realize that.  Still they see no action.  And I guess if anything             
 that is what I would hope to bring to the table today - just the              
 concern that the private citizens have or what they see as whether            
 or not it's a natural predictable occurrence, is really a moot                
 point.  They see it as something that's coming in and destroying              
 their property, they're seeing it destroying the aesthetics of                
 their park plans, they're seeing all the large trees at Kincade               
 die, they're seeing all the trees along the hillside die.  I'm on             
 site telling them that they're are lots of things that you can do             
 from chemical insecticides to any number of good argiculture(ph.)             
 types of things.  They have this information that there are                   
 techniques, they want to (indisc.).                                           
                                                                               
 Number 948                                                                    
                                                                               
 CO-CHAIRMAN GREEN:  Thank you.  That's probably a common question             
 to you, I can understand that.  That brings us then to Jack Phelps            
 the Executive Director of Alaska Forest Association.                          
                                                                               
 Number 1001                                                                   
                                                                               
 SENATOR TAYLOR:  Representative Green.                                        
                                                                               
 CO-CHAIRMAN GREEN:  Yes.                                                      
                                                                               
 SENATOR TAYLOR:  Might I make a comment or two, I'm gonna have to             
 leave here.  I have to leave here, I have another appointment I               
 have to go to.                                                                
                                                                               
 CO-CHAIRMAN GREEN:  I apologize Senator Taylor.  Please go ahead.             
                                                                               
 Number 1009                                                                   
                                                                               
 SENATOR TAYLOR:  No problem.  I wanted first to thank you, Mr.                
 Chairman, and the Resource Committee members for bringing this                
 matter to our attention again.  I was making speeches on the floor            
 of the House on this subject seven years ago.  Terry Martin started           
 joining me in that effort when Cooper Landing became very obviously           
 hit back over six years ago.  I think that this entire educational            
 process that you have going on today is to be applauded and                   
 especially I applaud those professionals who have come forward                
 today and told us very clearly and very candidly where the problem            
 lies and that this is not something that's untreatable.  It doesn't           
 take rocket scientists to handle this thing.  It's merely a matter            
 of going out and allowing our professionals to have the budgets               
 they need to do the work that is necessary to be done, but this               
 entire process is strong evidence, in my opinion Mr. Chairman, of             
 a gross failure of stewardship and an indictment upon all of the              
 public agencies that are responsible for the health of these                  
 forests.  It seems as though anymore we're much more concerned                
 about doing polls and listening to some group of people who are not           
 experts in the field who merely have some emotionalism to expound,            
 And in the process we have allowed a great and vast forest resource           
 to decay, rot and be destroyed.  I applaud you for bringing this,             
 again, to our attention and I hope that I can rely upon you and the           
 members of your good committee and those professionals that have              
 come forward today to provide us with the support and the courage             
 during the next legislative session to systemically begin to                  
 address this problem for the first time in Alaska, both as a state            
 and hopefully with the cooperation of the federal government, the             
 University of Alaska, the boroughs and also those private                     
 landowners that are impacted within the area.  I'm sorry if I've              
 taken longer than I probably should have, Mr. Chairman.  And I've             
 been sitting here though throughout the meeting and I really                  
 appreciate the good work your doing and the good testimony that               
 we've had and I thank you very much for taking our time to do that.           
                                                                               
 Number 1235                                                                   
                                                                               
 CO-CHAIRMAN GREEN:  Yes, thank you.  Senator Leman has a response             
 to that sir.                                                                  
                                                                               
 Number 1240                                                                   
                                                                               
 CHAIRMAN LEMAN:  Thank you, Senator Taylor, for that comment.  I              
 don't know if you've heard the, Robin, the introductions in the               
 beginning, but we are also joined by the Senate Resources Committee           
 and Senator Halford and myself are present here today.  And I                 
 appreciate you consistent approach toward the spruce bark beetle              
 challenge.  I recall those speeches on the floor of the House and             
 they were extensive.  I appreciate your interest.                             
                                                                               
 Number 1305                                                                   
                                                                               
 SENATOR TAYLOR:  Yes, thank you too Senator Leman.  It was mere               
 oversight on my part and I did hear the introduction and I didn't             
 know if you and Rick were still there or not, but thank you so much           
 for taking your time today to do this.  I really appreciate it.               
                                                                               
 Number 1318                                                                   
                                                                               
 CO-CHAIRMAN GREEN:  Thank you.  Jack.                                         
                                                                               
 Number 1320                                                                   
                                                                               
 JACK PHELPS, EXECUTIVE DIRECTOR, ALASKA FOREST ASSOCIATION:  Thank            
 you Mr. Chairman.  For the record, my name is Jack Phelps, the                
 Executive Director of the Alaska Forest Association, also a member            
 of the Society of American Foresters.  I've worked in the forest              
 products industry on and off since 1969.  The association                     
 represents the timber industry throughout Alaska.  To that end, we            
 support efforts that enhance economic opportunities by making the             
 forest resources of Alaska available for sustained harvest.  We               
 believe that timber harvests are an appropriate management tool for           
 public land managers both to maintain forest health and provide               
 public benefits from publicly held land.  Today I will be                     
 discussing with you the market situation with respect to Alaska               
 timber generally, and beetle killed and beetle damaged timber in              
 particular.  I also want to talk about the constraints that                   
 complicate the problem of marketing beetle killed timber from                 
 public lands in Alaska, and offer some thoughts on what you might             
 be able to do about those constraints.  As you have heard from the            
 various experts today, the spruce beetle problem in Alaska is                 
 widespread and crosses all ownership boundaries.  As you might                
 expect, the private landowners have been the most responsive to               
 this forest health situation.  Regional and village Native                    
 corporations own large tracts of beetle infested land.  Those firms           
 have been logging and reforesting their beetle invested land for              
 the last six to eight years.  They have been able to sell into the            
 general market and several niche for both round logs and chips.               
 Alaska white spruce has some qualities that make it very desirable            
 commodity in some markets.  For example, the principle purchaser of           
 white spruce on the Kenai Peninsula today is Anchorage based Circle           
 DE Pacific which has a chip handling facility on Homer Spit.  The             
 company sells wood chips to two Japanese paper companies for use in           
 newsprint and high quality bond paper.  Since 1993, the company has           
 progressively increased its shipments from 100,000 bone dry units             
 in that year, to 135,000 bone dry units this year.  It expects to             
 increase shipments yet again in 1997, to 150,000 bone dry units.              
 The port facility is capable of handling twice that volume.  Circle           
 DE Pacific's customers find the Alaska chips particularly desirable           
 because of their white color.  There are economic and environmental           
 advantages to using chips that do not have to be bleached.  Alaska            
 has an advantage in this market, in that the year-round ice free              
 port of Homer is 2.5 days closer to Japan than is the United States           
 West Coast.  A potential competitor for this market is Russia, and            
 it behooves Alaska to develop the market as much as possible, so              
 that we can maintain a competitive edge.  One factor important to             
 that purpose is timely timber sales and to be best suited, the                
 spruce must be harvested soon after its demise if it is from a                
 beetle infested stand, which in the case of our Southcentral                  
 timbers is most of it.  The Alaska Forest Association has recently            
 released a study of the Pacific Rim market demand for Alaska timber           
 which I have provided for you today along with my written comments.           
 Now while that report focused primarily on Tongass timber as being            
 well positioned to satisfy market demand in the Pacific Rim, the              
 findings of that study have implications for other timber coming              
 from Alaska.  The study shows that countries of the Pacific Rim are           
 are expected to increase imports of timber and lumber over the next           
 several decades.  It shows that the traditional sources of supply             
 for this market, particularly the Pacific Northwest, are not in a             
 good position to respond to the growing market.  For instance,                
 production from federal lands in the five state region of the                 
 Pacific Northwest has decreased in the last six years by 82                   
 percent.  Private production of timber in the same five state area            
 has declined by 19 percent, and that on state lands have declined             
 by about 35 percent.  The study also shows that the often predicted           
 increase in supply from the American Southeast is unlikely to                 
 develop, leaving a significant opportunity for another American               
 region, such as Alaska, to step to the plate.  Our geographic                 
 position is a decided advantage.  Direct competition from countries           
 like New Zealand and Chile who are increasing their harvest, is               
 likely to be minimal, since the type of timber available from them            
 differs considerably from that grown here.  Now Scandinavia and               
 Russia, however, are direct competitors.  Given our geographic                
 advantage over the former we should be able to compete effectively,           
 if other constraints do not hamper our efforts.  Now all is not               
 rosy on the market side as you might know.  As you are aware I'm              
 sure the current market is in a serous slump.  Pulp prices,                   
 especially, have been extremely low in recent months.  Those                  
 companies, such as Circle DE Pacific, who have long term agreements           
 with purchasers can weather such a slump.  It is tougher on others.           
 Nor is the price of chips the only problem.  Low quality sawlogs              
 have experienced as much as two-thirds drop in market value since             
 last year.  But remember the market is cyclical, and to whatever              
 degree we can avoid it, we ought to not allow short term problems             
 to dissuade us from working to develop long term markets for                  
 Alaska's timber.  Artificial constraints, that is non-market                  
 constraints, placed on developing timber resources on public lands            
 in Alaska remain a concern to the industry.  Most people believe              
 that higher logging costs in Alaska are at least partly to blame              
 for our inability to take full advantage of the market                        
 opportunities that are out there.  Part of the problem is that                
 beetle-caused deterioration in the wood reduces its value, but it             
 is also true that environmental protections are greater in Alaska             
 and those protections cost money and right now the entire cost of             
 the protections is absorbed by the owners of the tree whether it be           
 private or public.  Due to changes in state law made in 1990, state           
 timber sales are subject to incredibility burdensome and expensive            
 public processes.  The state estimates that it has one public                 
 meeting and produces about 50 pages of new documentation for every            
 million board feet of timber it offers.  Can you imagine that in              
 the Tongass, Mr. Caplan?  Now bear in mind that this often isn't              
 Tongass National Forest old growth, so what we have done is add               
 huge extra costs to what is often extremely marginal timber.  The             
 Nineteenth Legislature took some steps in the last two years with             
 HB 121 and HB 212 to provide some relief to this problem, and we              
 appreciate especially the work your respective committees and the             
 work that you did on those bills, but the problem remains.  And I             
 would suggest a couple of things that you folks could do about this           
 in the near future.  One of them is you simply have got to look               
 very carefully at how you cut the budget.  If you look at what                
 you've done to the Department of Natural Resources relative to what           
 you've done to some other agencies, I think they've suffered a                
 disproportionate amount of the reductions in recent years and I               
 think it's very very important that if you want to do something               
 about this spruce bark beetle problem, you have absolutely got to             
 start protecting the foresters in our Division of Forestry in the             
 Department of Natural Resources.  We can't afford to lose any more            
 foresters and those foresters are good guys.  I know them, they're            
 professionals, they're hard working.  We need to make sure that we            
 have professionals in our Division of Forestry to put up timber               
 sales.  So I urge you to take very very careful look at those                 
 issues when you start cutting the budget, because frankly, for the            
 last couple of years I think if you look at the facts you'll see              
 that our timber program has returned a positive return for us and             
 in addition to helping us with our forest health problem, I think             
 it's very very important that you take good care of the Division of           
 Forestry foresters so that we can have timber sale program in the             
 future.  The other thing that you could do is simply put some more            
 money into the capital budget like we did a couple of years ago to            
 put up some of these salvage sales.  But in doing that, you're also           
 going to have to include some directives that tell both the                   
 Division of Forestry and the Department of Fish and Game to                   
 cooperate to make those timber sales put up in a way that we can              
 afford to harvest them.  The Thunder Creek sale in Haines is a good           
 example.  They just put a bridge across the Kelsall River instead             
 of having to helicopter beetle killed timber, they'd probably find            
 a buyer.  I know some of my companies would be interested in                  
 harvesting that timber if they didn't have chop or log it, and all            
 it takes is a bridge across the Kelsall River.  So I would suggest            
 that the state look at very carefully.  I have spoken to                      
 Commissioner Rue about it and he willing to discuss it with us.               
 Let me point out something else about scale here.  Legislators                
 deliberated about whether the Forest Land Use Plan exemption in HB
 212 should be 10 acres or 20 acres.  There is little doubt in my              
 mind that an exemption of 20 acre timber sales or an exemption for            
 salvage sales from forest land use plans would have brought a veto            
 in that legislation.  But at the same time, some people who want              
 more treatment of the spruce bark beetle epidemic talk about                  
 logging hundreds of thousands or even millions of acres.  Now while           
 from an industry perspective that might be nice, I think public               
 support for an increase of that magnitude is probably going to be             
 tough to generate.  But even if you could get public support, I               
 believe there will be strong resistance from the Alaska Department            
 of Fish and Game.  I think we all need to work together to try to             
 figure out what we can do with respect to increasing our level of             
 harvest.  Then again, I think you'll have to look at fundamental              
 changes in the law because it's the law that gives direction to               
 managers of public land and it's the law that gives public land               
 managers a place to hide from decisions, which sometimes I think              
 that's what they want to do, both on state and federal level.  Now            
 on the federal side we have a bigger problem.  The Chugach National           
 Forest suffers from the same inertia that has paralyzed timber sale           
 programs in national forests all across the country.  Congress                
 provided an opportunity to change that recently when it passed the            
 salvage law last year.  Instead of responding and addressing a                
 widespread forest health problem, the Clinton Administration chose            
 to find a legal way to avoid obeying the law.  The result here in             
 Alaska was the Forest Service got a lot of people excited about               
 sales that never happened.  Some of us wonder if any of them were             
 intended to happen.  The problem on federal lands is complicated by           
 the fact that much of the spruce beetle infestation on federal                
 lands occurs on lands that are not managed for timber resources.              
 That is they're not under the jurisdiction of the Forest Service.             
 They're in park lands, wildlife refuges or other BLM lands.  One              
 action I think that Alaska needs to take is for the legislature to            
 work together with Governor Knowles to press the federal government           
 to take action on its lands that will aid in restoration of forest            
 health while creating some economic opportunities for Alaskans.               
 It's time for Alaskans to speak up with a loud and consolidated               
 voice.  My association stands ready to assist you, even as we are             
 currently working with the Governor to get a better recognition by            
 the national administration of the needs of Alaska's forests and              
 her people.  Recent actions by the White House have been less than            
 encouraging, but we are not yet ready to give up.  Thank you for              
 the opportunity you've given me to speak today and I'm certainly              
 willing to answer any questions the committee members might have.             
                                                                               
 Number 2455                                                                   
                                                                               
 CO-CHAIRMAN GREEN:  Thank you Jack.  We have two more people to be            
 heard and we are running a little late, so I would like to give               
 them a chance to be heard and then we'll it up for questions.  So             
 with that, Cliff Eames of the Alaska Center for the Environment               
 please make your comments, then we have Catherine Thomas of the               
 Chamber of Commerce.                                                          
                                                                               
 Number 2522                                                                   
                                                                               
 CLIFF EAMES, ALASKA CENTER FOR THE ENVIRONMENT:  Representative               
 Green, Senator Leman, members of the committee, my name is Cliff              
 Eames, I'm with the Alaska Center for the Environment.  We're a               
 private conservation organization with over 3,000 members.  I want            
 to thank the committees and in particular Senator Leman and his               
 staff for allowing me to speak to you today.  I was also delighted            
 to learn this morning that the Department of Fish and Game had been           
 added to the agenda.  A major point that I want to make in just a             
 minute is that I think we need to hear from the broadest possible             
 variety of both specialists and forest users.  A little background,           
 I too as many other members here around the table have been dealing           
 with this spruce bark beetle issue for many years, for longer than            
 a decade.  I was the conservation community representative on the             
 U.S. Forest Service's working group, that's their advisory group              
 for their Cooper Landing planning project and more recently I                 
 played the same role on the Forest Service's Moose Pass working               
 group.  I was also the conservation community representative on the           
 state of Alaska's forest health task force.  So although I                    
 certainly don't have the answers I'd like to have, I think I know             
 the questions and a lot of the issues tolerably well.  A couple of            
 things quickly, we don't dispute, I don't think anybody would, that           
 there are a lot of dead and dying white and Sitka spruce trees in             
 Southcentral Alaska and other parts of the state.  We have eyes,              
 you know we drive the highway, we get out into the forests, there             
 is a significant infestation.  The question has always been not is            
 there an infestation, but what's the appropriate response to the              
 infestation?  I also want to make it very clear that I am                     
 addressing my remarks to the public plans, not private plans.  In             
 that regard though I would point out as we've learned today that in           
 fact a great deal of timber is coming off the private lands in                
 Southcentral Alaska.  It's not as if we're not logging in response            
 to the beetle, but it's happening on private lands.  Yesterday in             
 Kenai there seemed to be some surprise at the fact that this was              
 occurring on private lands and wasn't occurring at the same rate on           
 public lands.  To me it was very obvious why that's happening.  On            
 private lands a primary purpose, often the primary purpose of those           
 lands is to generate direct revenue, often in a timely fashion as             
 possible.  Most of our public lands are the ones that we're                   
 addressing today are multiple use public lands.  Commercial logging           
 is one of the possibilities for those lands, but there are awful              
 lot of other resources and uses which deserve equal consideration             
 and the public advocates for those other resources and uses.  I               
 wanted to start off getting into a little bit more of the meat of             
 it by keying in a press release released by the Senate and House              
 majorities about this meeting which I think can be very                       
 illuminating.  There is a statement in here which reads, "We've all           
 seen the red trees and we must recognize the impact of this                   
 devastation on wildlife, water quality, anesthetics.  We need                 
 scientific information from professional foresters and I believe              
 this hearing is a good start."  Well I think we need to go beyond             
 professional foresters with all due respect.  If I were to purchase           
 a home - if I wanted to purchase a home I'd go to a realtor and not           
 a car salesman.  Some what analogously, if I wanted advise on how             
 to grow commercial timber I'd go to a forester.  But again                    
 referring back to the press release, if I wanted advise on how to             
 manage wildlife I'd to to a wildlife biologist; fisheries,                    
 fisheries biologist; water quality or water supply, a pollution               
 expert, a chemist, a hydrologist; aesthetics, the Forest Service              
 has viewshed experts and I guess landscape architects, I'd go to a            
 specialist in aesthetics and scenic beauty and not a forester.  And           
 I think it's really really important that all of our public                   
 decision makers including, of course, the legislature seek out as             
 many pieces of advice, information, opinion, facts and so on as               
 they possibly can.  I know that in my experience over a decade I              
 hear very different recommendations from foresters than the ones I            
 hear from other specialists and similarly users of the forest.  Now           
 the lawsuit that the Center for the Environment is involved in                
 regarding the state's 5 Year Schedule for the Kenai/Kodiak area is            
 frequently described as "The Trustees Lawsuit" or the                         
 "Conservationists Lawsuit" or recently here "The Alaska Center for            
 the Environment Lawsuit," and that's only partly true.  Certainly             
 there are conservationists who are involved in that lawsuit, but              
 other plaintiffs who have a very serious concern about proposed               
 logging on state lands on the Kenai Peninsula include the Alaska              
 Sportfishing Association, Trout Unlimited, and on the peninsula               
 several commercial fishing organizations who cater to sportfishing            
 interests.  Similarly, we have an association of tourism interests,           
 the Alaska Wilderness Recreation and Tourism Association.  This is            
 a bunch of mostly business people with Alaska owned and operated              
 tourism business who have had tremendous concern about some of the            
 logging that was being proposed on the Tongass and they expressed             
 their concern very forcefully as well.  So I don't think it's fair            
 to say that it's just the Alaska Center for the Environment or the            
 Sierra Club who are perhaps obstacles to large scale logging and              
 road building in response to the beetle.  And I don't think Jim               
 mentioned it today, perhaps he did - Larry did yesterday.  What do            
 some other members of the public feel about large scale logging and           
 road building in response to the beetle.  Larry Hudson said                   
 yesterday on Kenai Peninsula that there was a great deal of public            
 opposition to the Forest Service's recent proposals to log on                 
 Turnagain Arm and along the Resurrection Pass Trail and Six Mile              
 Creek, and there was a lot of public opposition and it was all                
 types of users.  It wasn't, again, just the Center for the                    
 Environment or conservation groups.  I think you need to recognize            
 that this still is a very controversial issue and that there is               
 substantial public opposition to large scale logging and road                 
 building.  I would also quarrel with some of the conclusions that             
 were drawn yesterday regarding the icier study that attempted to              
 assess public opinions about how we respond to the beetle.  As I              
 recollect that study, it was far from a mandate for large scale               
 logging and road building, especially in the back country, where              
 when the question was asked about the back country, the public was            
 split almost evenly on whether logging and road building was an               
 appropriate response in the back country.  So there is clearly no             
 mandate.  I would also suggest that if we asked the public the                
 direct question, "Do you support road building and large scale                
 logging in head waters of some of our most valuable salmon and                
 steelhead streams like the Kenai River or the Anchor River or Deep            
 Creek or the Ninilchik?"  You'd probably get a lot fewer than the             
 approximately 50 percent who might have supported it when the open-           
 ended question was asked.  Very important question, which I think             
 is well resolved, but may be not stated frequently enough, "Can we            
 prevent the spread of the bark beetle?"  I know of almost no                  
 experts who will say that we can prevent the spread of the bark               
 beetle at this stage.  I would actually suspect that it will be               
 very difficult to have found somebody ten years ago who would say             
 that we really could prevent the spread of the bark beetle over the           
 landscape as a whole.  For that reason, I question somewhat the               
 assumption that public land managers are guilty of negligence in              
 not logging spruce bark beetle killed or at risk trees adjacent to            
 private lands.  I just don't think we really could have prevented             
 the bark beetle from infesting private trees regardless of what we            
 did.  Fires is a very important issue.  I'd like to touch on that             
 briefly.  It's a great concern to many people for obvious reasons.            
 And I point out one thing and that is that logging can cause                  
 wildfires.  The Division of Forestry's fire prevention officer, one           
 of them, just a couple of weeks ago in a newspaper article said               
 that at least nine of the wildfires that occurred on the Kenai                
 Peninsula this season were started by logging operations.  We have            
 to recognize that on the peninsula almost all of our fire starts              
 are caused by humans.  We have, I think, maybe an average of one or           
 two lightening caused fires each year, so we need to address human            
 fire starts.  Logging operations can cause a fire through slash               
 piles and through roads.  If you look at our fire starts in the               
 Kenai Peninsula almost of them are clustered around our road                  
 system.  As we build more and more logging roads, we are very                 
 likely creating more opportunities for wildfire starts that we                
 don't want to see started.  We may approve of a number of                     
 prescribed fires, but some of the wildfires obviously create                  
 problems.  It's a very complicated issue - the fire start issue and           
 I think we need to be really careful about not talking about                  
 holocausts necessarily.  One of my colleagues tried working with              
 some agency people to arrive at a statement that describes the                
 effect that the bark beetle might have on fires and the best that             
 she and the agency people could come up with is that whether living           
 or bark beetle killed trees offer the greater risk depends on                 
 complex specific changing local conditions.  Very very complicated.           
 We can't really make too many generalizations about the effect that           
 the bark beetle has on wildfires.  Our spruce trees are very                  
 resinous - our live spruce trees and create in themselves a very              
 serious fire risk if we have dry weather and winds.  As far as                
 fires are concerned, there are a couple of things we can do besides           
 a lot of logging and road building in the back country.  One,                 
 again, is to try to prevent fire starts with public education, fire           
 closures, you know where appropriate, and the agencies are helping            
 do this and I commend them for it, help private citizens create               
 defensible space around their homes and businesses so that if there           
 is a wildfire, the likelihood of losing the homes or business goes            
 down dramatically.  A couple more points, I appreciate your time              
 here.  I think the question of how much public money it might cost            
 to undertake some of the treatments that are proposed by some of              
 the foresters and our forestry agencies is a very important one as            
 all of us know.  Les Reed suggested that we maybe spend $50 to $100           
 million a year to do this.  I think we need to be asking the                  
 Alaskan public how they want to spend scarce public monies, and it            
 might be that they don't to spend a great deal of money on logging            
 and road building beetle killed trees on public lands when we hear            
 from departments like Fish and Game that are telling us that they             
 don't believe that the beetle is having a serious impact on some of           
 the resources and values that we care about deeply.  I'll stop                
 there and just once again say how much I appreciate the chance to             
 speak to you today though - thank you.                                        
                                                                               
 Number 3644                                                                   
                                                                               
 CO-CHAIRMAN GREEN:  Okay, Cliff thank you and the last speaker we             
 have is Ed Thomas, representing the Alaska Chamber of Commerce.               
                                                                               
 Number 3659                                                                   
                                                                               
 CATHERINE THOMAS, INCOMING CHAIR, ALASKA STATE CHAMBER OF COMMERCE:           
 Thank you, I'm Catherine Thomas.  I'm the incoming chair of the               
 Alaska State Chamber of Commerce.  I just wanted to let the                   
 committees know that we are hearing from our local chambers.                  
 They're very concerned about the spruce bark beetle epidemic.  We             
 expect this to be one of the top issues in the next legislative               
 session, so when our members come to Juneau I think you'll find               
 them talking about this so you can expect to see us at the table on           
 this issue.  We might be the consolidated voice the Alaska Forest             
 Association is looking for.  Thank you.                                       
                                                                               
 Number 3734                                                                   
                                                                               
 CO-CHAIRMAN GREEN:  Thank you.                                                
                                                                               
 UNIDENTIFIED SPEAKER:  Catherine, could I just interject right                
 there what Catherine (indisc.)  Catherine, can you stay there?                
                                                                               
 MS. THOMAS:  Yes.                                                             
                                                                               
 UNIDENTIFIED SPEAKER:  What specifically might that united voice be           
 saying?  Would it be saying things like what these gentlemen were             
 suggesting we need to do some work aggressive expenditures and                
 capital and also in the operating budget for this or it's kind of             
 a combination of a lot of things that we've heard today?  What                
 types of things may we do legislatively.                                      
                                                                               
 Number 3758                                                                   
                                                                               
 MS. THOMAS:  I think you'll hear the combination and I think what             
 we'd like to see is a plan.  The concern now is their tourism,                
 recreation - if it's effecting the watershed area in fisheries.  So           
 the community concern is their local business, the aesthetics of              
 their community, and what we haven't seen is a strong effort and a            
 strong plan.  And next week is our annual meeting.  There were some           
 requests to bring this up and try to come out with a resolution.              
 I'd like to see us work with the committee and with some of the               
 organizations just until our December meeting and see if we can               
 come out with a resolution that will help the legislature with a              
 plan, and I know that that's probably not the answer you'd like to            
 have had, but I don't have that answer for you yet.                           
                                                                               
 Number 3910                                                                   
                                                                               
 UNIDENTIFIED SPEAKER:  Well, we probably can't do a whole lot about           
 it.  I guess this is an emergency, but (indisc.) I guess even more            
 life threatening or, you know, than it is.  We probably aren't                
 going to do something special session before January anyway, so               
 that gives you the time (indisc.) appropriate, but I just believe             
 that we need to be as directive as possible so it's very clear                
 about what can and should be done.  So I just encourage you to                
 spend some time, get focused and (indisc.)                                    
                                                                               
 Number 3940                                                                   
                                                                               
 MS. THOMAS:  I understand and that's our intent.                              
                                                                               
 Number 3944                                                                   
                                                                               
 CO-CHAIRMAN GREEN:  Well my concern, and then we'll open it up to             
 any other questions, my concern is kind of after listening to all             
 this, it is not completely removed from somebody getting a serious            
 infection of a limb and then turns to gangrene - no relation, and             
 then it comes to a point of do you cut the limb off or do you let             
 the patient die and maybe the person doesn't want to have a limb              
 removed, but the alternative is pretty serious, and we may be in a            
 situation like that.  If we want to save our forest, we may be                
 beyond the point of saying I don't like the aesthetics or I don't             
 like this situation.  It may be critical enough to - we had to take           
 action.  But I think Representative Ogan, you had a question                  
 sometime back.  Do you still have a question?                                 
                                                                               
 Number 4022                                                                   
                                                                               
 REPRESENTATIVE SCOTT OGAN:  Sure, Mr. Chairman (indisc.).                     
                                                                               
 CO-CHAIRMAN GREEN:  Excuse me, those people on teleconference,                
 we'll take a few questions here and then we'll come out to you if             
 you have any.                                                                 
                                                                               
 REPRESENTATIVE OGAN:  Thank you, Mr. Chairman.  Mr. Holsten, I have           
 a question for you.  You said that a lot of these lands are turning           
 -- you've studied them for about 20 years they turned into                    
 grasslands essentially without active -- I think one of these other           
 gentlemen said without the active reforestation of maybe two-year             
 old trees or something that - and the disturbance of the soil that            
 these lands are taken over primary by grass lands.  As a hunter,              
 you know I'm gonna brag here a little bit, I just picked up 60 inch           
 moose a couple of weeks ago and I moose hunt every year.  Every               
 time I get a moose, it's in the big timber tree line - my secrete             
 okay, if anybody wants to moose hunt.  But that's where they hang             
 out, that's where the big boys are, and I'm a little concerned, you           
 know, we're losing our timber and that I recognize that logging               
 certain areas increases the habitat by new growth coming in and               
 what not, but I'm concerned that we're suffering probably the                 
 greatest ecological change in Alaska right before our eyes and I'm            
 kind of dumbfounded that, maybe I'm ignorant, but dumbfounded that            
 Fish and Game doesn't have any concerns about wildlife habitat.               
 And it seems to me that it would have an impact, so I don't know              
 about my question -- I don't know what the question is.  I'm just             
 concerned about some of the conflicting things that I hear here in            
 my own experiences of a hunter and fisherman in Alaska.  Now                  
 logging done properly, and I believe very adamantly in setbacks and           
 I have problems with some of the lack of setbacks from fish streams           
 on private lands - there is more exceptions made.  It seems to me             
 that logging and reforestation and reestablishing the forest, as              
 these gentlemen have suggested, is the most appropriate way to go.            
 Do you have a comment on that?                                                
                                                                               
 Number 4241                                                                   
                                                                               
 DR. HOLSTEN:  I'll comment, but I'll let the Fish and Game guys get           
 into the nitty gritty because I'm not fishery specialist, but I'm             
 also part of that infest working group - this interagency working             
 group.  We're looking at potential impacts associated to wildlife             
 habitat and there has been enough concern.  The point was was up              
 until about year or so there wasn't much concern.  There has been             
 concern by wildlife biologists what is actually occurring.  There             
 hasn't been much documentation of adverse impacts to many species,            
 mainly because there hasn't been - there has been (indisc.) studies           
 looking specifically at impacts associated with wildlife and spruce           
 beetles.  The other point is that the impact that we're having now            
 with the present infestation, the infestation rates are                       
 significantly higher than what we have seen in the past.  There was           
 a -- I think Lance Trasky talked about a study that was done in               
 Homer and what the results of that study did not show that we had             
 a bark beetle outbreak that took all the spruce out in Homer a                
 hundred years ago and (indisc.).  Assuming there was an outbreak              
 100 years ago, which they don't know, something disturbed that                
 forest.  Lets just assume it was the spruce bark beetle.  The main            
 point from that study that came out is that a portion of the spruce           
 was removed.  Not 90 percent like we're seeing now, but maybe 20              
 percent was removed.  Residual trees that weren't killed are still            
 there now being impacted by the beetle.  The most important part              
 coming out of that study, and the person that conducted that study            
 is a biologist in a wildlife refuge, there is one new regeneration            
 that has come into that site that he studied as a result of that              
 disturbance.  So these forests are not regenerating.  Some of the             
 benefits of logging that could be -- there is a picture back there            
 of right behind Jerry there that the Forest Service harvesting some           
 beetle impacted areas in the Cooper Landing area, also, in many               
 areas removed the dead spruce.  They've also did some silvicultural           
 techniques, in other words, filled the aspen which promoted aspen             
 regrowth.  So the amount of brow species has responded                        
 significantly in certain areas due to logging practices.  But I               
 think one of the things that the members of this committee, before            
 I stop here, have to be very very careful with is there has been a            
 lot of information out there.  There is a lot of different agendas            
 and I've been involved in this for almost 20 years.  There is a lot           
 of information and misinformation going around.  So you're gonna              
 have to be charged at very carefully kind of wading thorough what             
 you're hearing today.  There is some good information, but there is           
 also some half true information.  So I'll just leave it at that.              
                                                                               
 DR. MOORE:  Mr. Chairman, I wonder if I might just try and put a              
 sharp point on this particular issue.  It kind of flabbergasted me            
 actually to hear Fish and Game and environment people saying                  
 they're not concerned about marbled merlots - not concerned about             
 the habitat loss for marbled merlots, songbirds, squirrels and all            
 the other species that belong to the forest biodiversity of the               
 spruce forest.  Of course losing all those trees and turning it               
 into moose pasture is gonna be good for moose, just like logging is           
 usually good for moose and good for bears and good for deer and               
 good for all the other species that eat berries and low ground                
 forage.  This killing all these trees is gonna make a heck of a               
 good place for....                                                            
                                                                               
 TAPE 96-82, SIDE B                                                            
 Number 001                                                                    
                                                                               
 REPRESENTATIVE KELLY:  ...you got problems with your teeth you need           
 to see a dentist and all that.  But I'm concerned about some of the           
 things that the man from the Department of Fish and Game said.  He            
 said that if he thought logging or some of the activities of the              
 Department of Forestry would help that they would be the first ones           
 to squawk.   But I don't understand exactly what he means - that              
 the first gentleman I heard, which I think was Dr. Holsten, said              
 that there is almost no regeneration happening in the forests where           
 this beetle kill is happening.  If there is no regeneration, then             
 there is not habitat coming up for moose and animals like that.               
 And it seems that there is an incredible habitat encroachment                 
 happening because of this natural beetle kill.  It seems to me that           
 the Department of Fish and Game should be squawking because they              
 can be the first to help by throwing their weight towards the                 
 argument of creating new habitat for these animals that are                   
 obviously not getting habitat created for them because of the                 
 beetle kill and the lack of our willingness to do something about             
 it.  Mr. Boutin, if you could comment on that.  I won't go the                
 Department of Fish and Game because what he said didn't make sense,           
 but if you could comment on that Mr. Boutin I'd sure appreciate it.           
                                                                               
 Number 122                                                                    
                                                                               
 MR. BOUTIN:  Mr. Chairman, through the Chair, Representative Kelly,           
 you know at Department of Natural Resources we have foresters, but            
 we don't have fisheries biologists, we don't have wildlife                    
 managers, wildlife biologists.  And so I guess it sounds like I'm             
 dodging the question perhaps.  I hope it doesn't because I'm not,             
 but we look to the Department of Fish and Game to tell us what's              
 best for habitat, what's bad for habitat and that's why we have               
 them out there with us helping us design our timber sales so that             
 the negative impacts of logging, which Cliff Eames talked about,              
 you know so that we can minimize those negative impacts of logging.           
 You know, if the Department of Fish and Game should come to us and            
 say, "Well we'd like this area logged."  By gosh, we'd be getting             
 right out there, but we look to them for the guidance on wildlife             
 and fishery issues because we don't have that expertise whatsoever.           
 And you know no one expects us to have it.  We don't have                     
 biologists in the DNR.                                                        
                                                                               
 Number 240                                                                    
                                                                               
 CO-CHAIRMAN GREEN:  Tom, if I could follow up on that.  This is               
 Representative Green from Anchorage.  If there could be a case                
 shown that it was adversely affecting the fish population, you                
 would jump in on that and yet I thought earlier you said that the             
 main thing that is guiding your timber sales is an adequate market            
 and that you had had some problems with litigation from the Alaska            
 Trustees.  Is that a criteria which would justify additional timber           
 sales because of habitat situation as opposed to just the mere                
 killing of additional forests?                                                
                                                                               
 Number 325                                                                    
                                                                               
 MR. BOUTIN:  I'm not entirely sure I understand the question, but             
 the concept I meant to get across is that we cannot claim in our              
 documentation, we don't claim because we don't have anything to               
 substantiate the claim that the bark beetle is negatively impacting           
 fish habitat, water quality or wildlife habitat, because the                  
 wildlife managers, the fishery biologists we know -- and I don't              
 mean to just pick on Fish and Game either because, you know, if               
 there were federal agencies who do have biologists, you know,                 
 saying that the bark beetle was negatively impacting fish habitat,            
 water quality, whatever, you know we'd be interested in talking to            
 them but there aren't, you know.  So if the discipline of wildlife            
 management, fisheries biology, was telling us, you know, that                 
 that's a reason to have timber sales in some places then we'd use             
 that in our documentation.  It would be a reason to have sales, but           
 since they don't say that, we can't very well use it as a way to              
 document timber sales because it's not true.  That's what I was               
 trying to say.                                                                
                                                                               
 Number 438                                                                    
                                                                               
 REPRESENTATIVE KELLY:  Mr. Chairman, could I follow up just on one            
 of the questions I had for Mr. Boutin?                                        
                                                                               
 Number 442                                                                    
                                                                               
 CO-CHAIRMAN GREEN:  Go ahead, Representative Kelly.                           
                                                                               
 Number 445                                                                    
                                                                               
 REPRESENTATIVE KELLY:  Thank you.  I guess the point I was trying             
 to get to is that I don't think I need to go to a fish and game               
 wildlife biologist to ask this question.  Mr. Boutin, do moose eat            
 new growth - new little sprouts that are coming up from the ground            
 or do they walk over to a big old spruce tree and take a bit out of           
 it?                                                                           
                                                                               
 Number 503                                                                    
                                                                               
 MR. BOUTIN:  Boy, except that I like to shoot moose and eat them,             
 I'm not, you know, as Scott Ogan said and I saw his moose rack                
 (indisc.), and it's every big as he said it is.  You know, moose              
 need cover and they need brows, but gee you've Lance Trasky there             
 and so it's crazy to, you know, for me to be really telling you               
 what moose need because I'm sure not a wildlife biologist, but                
 moose do need both cover and brows.  Maybe I didn't understand the            
 question Representative Kelly, Mr. Chairman.                                  
                                                                               
 Number 542                                                                    
                                                                               
 CO-CHAIRMAN GREEN:  I have another question that, it's a shame that           
 we lost Senator Taylor because of his legal background, but is                
 there in anybody's mind here or on teleconference a concern that              
 the state or the federal government might incur, knowing that we              
 have something killing trees and dead trees are more vulnerable to,           
 if nothing else, blow or breakdown fire - maybe, maybe not, but is            
 there any liability that we're exposing ourselves to by knowing               
 there is a problems and not doing anything about it?                          
                                                                               
 Number 621                                                                    
                                                                               
 MR. CAPLAN:  Mr. Chairman, this is Jim Caplan with the Forest                 
 Service.  I can respond at least in part.  Where we have a concern            
 with respect to these conditions it's usually when we are                     
 attempting prescribed fire for management and then we might be                
 considered liable if we have an escaped fire and it does damage.              
 Otherwise, these are natural processes and at least at the federal            
 level, generally they're - with a few exceptions, generally there             
 has not been held that the federal government is liable for                   
 lightening strike type fire and that kind of thing.  Equally, as              
 you're probably aware our fire fighting capabilities, not so much             
 in Alaska but certainly in the Lower 48, have been strained to                
 limit in the past few years and even in cases where we've had to              
 make very tough decisions about what to save in terms of structures           
 and people's property and what to let go.  Even those circumstances           
 still liability is not a major factor in (indisc.), so one of the             
 resource features and what lives are at stake and that kind of                
 things.  We try very very hard to protect structures as you're                
 aware of in fighting fires.                                                   
                                                                               
 Number 730                                                                    
                                                                               
 CO-CHAIRMAN GREEN:  Well the reason for the question was a                    
 statement that was made earlier that in four hours if a fire were             
 to start in the Potter Marsh area, in four hours it could go up the           
 hillside and if there were a way, lets say, that we could have done           
 something to prevent the infestation at the base of Potter Marsh              
 and didn't.  Does that create a problem with the landowner of the             
 trees, state or federal, between the Potter Marsh area and the                
 infestation, might become liable?                                             
                                                                               
 Number 802                                                                    
                                                                               
 MR. CAPLAN:  From the federal standpoint, not that I'm aware of.              
                                                                               
 REPRESENTATIVE OGAN:  Mr. Chairman.                                           
                                                                               
 CO-CHAIRMAN GREEN:  Yes Representative Ogan.                                  
                                                                               
 Number 809                                                                    
                                                                               
 REPRESENTATIVE OGAN:  I'd just like to bring up one other point.              
 I think the state of Alaska, as a whole, and the business community           
 is really missing the boat with value-added industries to beetle              
 kill timber.  I've talked to several gentlemen in the valley area             
 that are interested in putting in a CDX plant, possibly.  They                
 claim that the white spruce is excellent material for creating                
 plywood, where we're literally importing every sheet of plywood               
 from the Lower 48.  The plywood mills in the Lower 48 have shut               
 down and are available for pennies on a dollar and we're really               
 missing the boat with not utilizing this resource.  Chips - the               
 chip market is down, but chipping is the absolute lowest value you            
 can add to wood.  And I'm a professional woodworker, I've made my             
 living for 20 years.  What I learned as a kid I could turn a $1               
 piece of wood into a $10 bill and it's now about  $3 piece of wood            
 into a  $10 bill.  But still there is -- I think we're missing the            
 boat here.  We should seriously look at ways to encourage                     
 sustainable, but make this tremendous amount of material and fiber            
 available to industries that would be here for a long time, not               
 just a couple year sale for value-added tailored for a couple of              
 large companies like the last one was.  Then people on the local              
 level could utilize this resource.  That's a political soapbox.               
                                                                               
 Number 955                                                                    
                                                                               
 CO-CHAIRMAN GREEN:  Senator Leman.                                            
                                                                               
 CHAIRMAN LEMAN:  I have a number of what I think to be very quick             
 questions of several (indisc.).  When the time is appropriate, I              
 guess we have a few minute, I'd like to ask (indisc.) people from             
 people from being a dissertation, then there be (indisc.).  Dr.               
 Holsten in your comment I was particularly concerned about what's             
 happening is the take over by the grasses.  And then you say these            
 forests won't regenerate on their own, but if they are planted, you           
 know, reforested, will they grow if done early enough before the              
 grasses take hold?  And I assume that's a very expensive                      
 proposition if we're losing what this (indisc.) 1.3 million acres.            
 Is that right? - Of new acreage.  I mean that's mind-boggling and             
 so to go back in to reforest that is a staggering dollar amount.              
 But it would have to be done early otherwise we're caught up in               
 that cycle.                                                                   
                                                                               
 Number 1104                                                                   
                                                                               
 DR. HOLSTEN:  The 1.3 million, not all all of that 1.3 million                
 acres are impacted by grass.  The grass is more prevalent on the              
 lower Kenai.  In the Copper Center area grass is not a problem, but           
 alder is.  Many of those stands -- that's one of the concerns in              
 the Copper Center area due to logging without regeneration if they            
 don't back in or just do the beetles along, once those stands open            
 up they're occupied by alder with a real paucity of regeneration              
 (indisc.).  The key is to prioritize those areas that need to be              
 treated and the sooner you can get in to (indisc.) before you have            
 a problem with (indisc.), the cheaper it is.                                  
                                                                               
 Number 1150                                                                   
                                                                               
 CHAIRMAN LEMAN:  Greg in your comments, you talked about having a             
 I don't remember what you called it, but either a cone supply or              
 you're working with somebody with cones - are you actively                    
 replanting or are you making them available for others to replant             
 when you're harvesting your areas?                                            
                                                                               
 Number 1209                                                                   
                                                                               
 MR. ENCELEWSKI:  We have done some replanting, yes.  We're not                
 actively replanting at this time.                                             
                                                                               
 CHAIRMAN LEMAN:  But you're doing things like scarifying so it can            
 naturally replant.                                                            
 MR. ENCELEWSKI:  Correct, right.                                              
                                                                               
 Number 1221                                                                   
                                                                               
 CO-CHAIRMAN GREEN:  On that point now if I might, you said that               
 unfortunately leaving the seed trees hasn't been effective because            
 the seed trees get killed too.                                                
                                                                               
 MR. ENCELEWSKI:  Yes, we have noticed that.  Some of the seed trees           
 end up dying and trees left behind end up getting killed as well.             
                                                                               
 CO-CHAIRMAN GREEN:  Is this on this point?                                    
                                                                               
 Number 1236                                                                   
                                                                               
 JOAN NININGER, OWNER, SECRETARY/TREASURER, CIRCLE PACIFIC:  Yes.              
                                                                               
 CO-CHAIRMAN GREEN:  Could you identify yourself so...                         
                                                                               
 MS. NININGER:  I'm Joan Nininger with Circle DE Pacific.  I'm one             
 of the owners and secretary/treasurer.  I just wanted to follow-up            
 with Greg that this summer only we have reforested about 750 acres            
 with 480,000 seedlings.  We have a gentleman from Arkansas that               
 souped up the John Deer and he has a big metal plow where he digs             
 the ground scarifying it.  He does not do it in rows, we're doing             
 it "S" shaped to make it more natural.  And then we have a little             
 truck on the back where they literally drop the seedling down                 
 through a slot and big metal wheels that seal the ground to hold up           
 the seedling, and then they have a gentleman that follows, like               
 Johnny Appleseed, with a bag - kind of quality control.  If they              
 need more trees in the area or if one didn't quite make it up, then           
 he would fix it.  We are a private enterprise, but if any of you              
 ever have any questions of what we are doing, please feel free to             
 contract our office in Anchorage.                                             
                                                                               
 Number 1406                                                                   
                                                                               
 CHAIRMAN LEMAN:  What's the approximate cost of doing that like per           
 acre?                                                                         
                                                                               
 MS. NININGER:  It was I think $115.                                           
                                                                               
 CHAIRMAN LEMAN:  Per acre?                                                    
                                                                               
 MS. NININGER:  What we did last year is we went out and collected             
 the cones and then we sent them down to Silviculture in Washington            
 and they did a hybrid with Sitka and we're hoping that the hybrid,            
 deluxe spruce will hopefully (indisc.) be a detriment to the                  
 (indisc.).                                                                    
                                                                               
 Number 1436                                                                   
 CO-CHAIRMAN GREEN:  One of the questions I was gonna to have which            
 is tag (indisc.), you said 750 acres last year?                               
                                                                               
 MS. NININGER:  No, that's what we're planting this summer.  That's            
 what we've got in.                                                            
                                                                               
 CO-CHAIRMAN GREEN:  Okay, and how much is that compared to how much           
 you're losing to the beetle?                                                  
                                                                               
 Number 1452                                                                   
                                                                               
 UNIDENTIFIED SPEAKER:  It's a scratch.                                        
                                                                               
 CO-CHAIRMAN GREEN:  Okay, so it's just a drop (indisc.).  It's a              
 start, but it's not....                                                       
                                                                               
 MS. NININGER:  The other thing that I would like to say on behalf             
 of our company is that you also have to take with the jauntiest eye           
 with the newspaper rights, and also in that article on the                    
 newspaper was the fact it could have been arson that started that             
 fire down there.  There are cabins close by.  People go in there on           
 four wheelers to play and we also have people in there on snow                
 machines in the winter.  And you can do winter logging.  You'll               
 have to go in and scarify if you're worried about having roads                
 going to the back country, go in in the winter and get back out.              
 And a lot political stuff goes on with the federal and state                  
 agencies.  It doesn't have to be this way.  We don't have to go               
 right into viewsheds.  We don't have to go on the Turnagain Arm to            
 get started, but people need to quit fighting and we need to get              
 together and get educated and get after it.  I am embarrassed to              
 leave this forest for my teenager and my grand kids.  And I am very           
 concerned about the Homer area.  We plan to retire down there.  I             
 had my child in Homer, I worked for Dr. Marley down there and we              
 have property in Anchor Point and I plan to go back.  And it's                
 embarrassing that we're not doing anything.  So I just wanted to              
 make a comment that you're welcome to get a hold of us any time.              
 It's only a perspective of the big picture that we do, but if we              
 can be of any assistance.                                                     
                                                                               
 Number 1624                                                                   
                                                                               
 CO-CHAIRMAN GREEN:  That's what we're all about here.  We're really           
 trying to get things and figures and concepts and see what we can             
 do.                                                                           
                                                                               
 MS. NININGER:  Thanks for your time.                                          
                                                                               
 CHAIRMAN LEMAN:  Thank you for coming.                                        
                                                                               
 Number 1634                                                                   
                                                                               
 MR. BOUTIN:  Mr. Chairman.                                                    
                                                                               
 CO-CHAIRMAN GREEN:  Yes.                                                      
                                                                               
 MR. BOUTIN:  Since Circle DE Pacific is there I guess I'll point              
 out the other firm I was talking about both when I said that one              
 firm has found a market and kind of saved all of us public land               
 managers because absent that market, we'd be getting no bids                  
 whatsoever on our timber right now.  And two, they're the firm that           
 is reforesting places out of their own profits that they're not               
 required to reforest so they're using their own profits to be good            
 stewards of the land - land that they don't own, reforesting with             
 their own money.                                                              
                                                                               
 Number 1713                                                                   
                                                                               
 CHAIRMAN LEMAN:  Well just speaking for myself, and I'm sure for              
 you and other members of the committee, commend you for doing that.           
                                                                               
 MS. NININGER:  And we won't go back into logging.  It's for our               
 future generations.                                                           
                                                                               
 CHAIRMAN LEMAN:  I understand that, but that's going to be the way            
 that we're going to be able to succeed in attacking this is if we             
 get people to come together and approach it in a very positive way.           
 Mr. Chairman, I have a couple of other questions.  Jack, you've               
 mentioned the bridge across - I jotted I said Kelsall - is that               
 right?                                                                        
                                                                               
 MR. PHELPS:  Kelsall River.                                                   
                                                                               
 CHAIRMAN LEMAN:  Okay.  I think you averted from your prepared                
 script.  Is that something that the state did or something that               
 your loggers did - put a logging bridge across and made it less               
 expensive access, therefore, you can go in and do something.  What            
 was the point you were making?                                                
                                                                               
 Number 1807                                                                   
                                                                               
 MR. PHELPS:  The reference there, Senator Leman, was to the salvage           
 sale in the Haines state forest that you folks put into the budget.           
 The process was initiated by Representative Williams a couple years           
 ago.  And they put up 14.6 million board feet of beetle kill                  
 timber, but the sale was designed as a helicopter sale because it's           
 in a roadless area on the opposite side of the Kelsall River.  My             
 comment was that had they designed the sale as a road logging sale,           
 as a conventional sale instead of a helicopter sale, it would have            
 required a bridge across the river and some roads put into that               
 part of the forest, but it would have made it an economically                 
 viable sale.  As a helicopter sale, nobody can touch it.                      
                                                                               
 CHAIRMAN LEMAN:  And it might have worked.                                    
                                                                               
 MR. PHELPS:  I believe it would still work.  It's not beyond                  
 solving the problem at this stage.                                            
                                                                               
 CHAIRMAN LEMAN:  I remember at one time, it may be a bridge to                
 somewhere now, but there was a bridge in Valdez across Mineral                
 Creek that was a very expensive bridge.   This was back when the              
 state had money to do things like this and it went -- nobody was              
 there on the other side.                                                      
                                                                               
 Number 1921                                                                   
                                                                               
 MR. PHELPS:  Well if I may, Senator, it doesn't have to be a                  
 permanent structure.  They could put in a temporary bridge.  They             
 could close the roads when they're finished.                                  
                                                                               
 CHAIRMAN LEMAN:  Is Mr. Eames still here?                                     
                                                                               
 Number 1932                                                                   
                                                                               
 MR. EAMES:  Yes Senator.                                                      
                                                                               
 CHAIRMAN LEMAN:  No, you can stay there.  I was just going to                 
 comment that you were talking about the people you go to for                  
 certain things and on water quality and things like that what you             
 didn't say, but should have and probably will from now on, is you             
 can go to a civil engineer.  (Laughter)  No you did say                       
 "hydrologist," and that is certainly one of the elements of civil             
 engineering.  That's all.                                                     
                                                                               
 Number 2007                                                                   
                                                                               
 CO-CHAIRMAN GREEN:  What I would ask of you people that are here              
 representing major landowners, if you could take a few moments - we           
 don't need to do it now because you may not have the figures, but             
 as a member of the Resources Committee I've got three questions I'd           
 like to pose to you and perhaps you could fill me in either by                
 phone or letters.  How many actual acres have you completed                   
 treatment on for the last two years, if any?  And how much land, in           
 numbers of acres, of the land that you are involved in is infested?           
 And we got started here on Circle DE, but what percent of the                 
 number of acres on you land do you plan to treat in the next two              
 years?  If it's different, if you've got a plan that's gonna be               
 nothing for two years and a great huge plan in three, don't say               
 "nothing."  I mean let us know because we're trying to get to the             
 bottom of this and what I would suggest is that what I've heard               
 today in the form of timber sales or development, we're looking               
 only at that area or areas that are economic and I'm concerned that           
 if you have some suggestions that we could use, we may have to take           
 matters beyond just whether or not it's economic.  If we truly have           
 a crises and this something that is beyond private industry's                 
 economic standards, there may be something else that the state or             
 the federal government has to take action on.  And so what I don't            
 want to do is to limit our scope of thinking to only those avenues            
 that lead to some economic return.  Break even, even slight losses,           
 I think those things are things we should at least look at and if             
 it's not practical, at the evaluated at that time on it's merit,              
 not necessarily on it's economics.  So I would really covet your              
 input, both from the private sector and from the private                      
 landowner's areas and also from the Department of Natural                     
 Resources.  And Tom, I would certainly covet the input from both              
 you and the DF&G whether or not we come to an agreement as to                 
 whether dead trees create or don't create a problem for fish                  
 habitat or wild critters.  I think if we can inequitably prove                
 that, but if it's a question mark I think we ought to go beyond               
 that to what can we do then to prevent this problem.  Are there any           
 questions from any of the teleconference sites?  Don't be bashful,            
 we've go the experts here.                                                    
                                                                               
 PETER ECKLAND, LEGISLATIVE ADMINISTRATIVE ASSISTANT TO                        
 REPRESENTATIVE BILL WILLIAMS:  Mr. Chairman, can you hear me?                 
                                                                               
 CO-CHAIRMAN GREEN:  Yes.                                                      
                                                                               
 Number 2259                                                                   
                                                                               
 MR. ECKLAND:  Mr. Chairman, this is Peter Eckland, staff for                  
 Representative Bill Williams and Representative Williams apologizes           
 he had to be out working at his other job today so he wasn't able             
 to attend this afternoon.  I've got a couple of quick questions, a            
 lot of my questions have already been asked, but I was wondering              
 Mr. Trasky from the Habitat Division talked about how the beetle              
 outbreaks don't seem to have any negative impacts on species that             
 are just - or animal that our particular concern - our interest for           
 Alaskan's.  I think that's kind of an interesting comment and in              
 light of our differing battles down here on the Tongass where it              
 seems like we're always concerned about species from a nat all the            
 way up to the grizzly bear and everywhere in between.  But I'm                
 wondering if you talked about the beetles and the kill not having             
 a detriment affect on some animals and I'm wondering if when we               
 have these large fires if that has adds sediment to the streams or            
 not?  It may be beneficial to streams, I don't know.  But I'm                 
 wondering if you can answer that please.                                      
                                                                               
 MR. TRASKY:  The question is whether large fires benefit streams?             
                                                                               
 CO-CHAIRMAN GREEN:  Excuse me, can you hear Lance alright?                    
                                                                               
 MR. ECKLAND:  Yeah, and the question is when we have these large              
 buyers, does that add sediment to the steams?  And is that                    
 detrimental or does have positive impact for streams for habitat              
 for fish?  Or is there just no impact?                                        
                                                                               
 Number 2434                                                                   
                                                                               
 MR. TRASKY:  That's a good question.  I don't think we have                   
 collected information on that particular phenomenon.  My intuitive            
 response would be that because of ground cover -- if it is hot fire           
 and burns down the mineral soil, you certainly would get increased            
 runoff and you would get a lot of sediment going into the stream              
 after a large fire.                                                           
                                                                               
 CO-CHAIRMAN GREEN:  Peter, you said you had a couple of questions.            
                                                                               
 Number 2501                                                                   
                                                                               
 MR. ECKLAND:  Yeah, just one other maybe for Mr. Boutin.  I'm just            
 curious, he mentioned that under the Forest Practices Act there is            
 no requirement to reforest on salvage sales.  While reforestation,            
 I'm sure, is probably a good idea I'm just wondering who made the             
 decision to require that on salvage sales and when that decision              
 was made.                                                                     
                                                                               
 Number 2525                                                                   
                                                                               
 MR. BOUTIN:  Yeah, there is no requirement in the Forest Practices            
 Act and it applies to land of all ownership, state, municipal,                
 private, to do reforestation after salvage logging.  In the case of           
 the state sale, in going through the public process, it was real              
 clear to DNR and certainly, you know, the decision was made                   
 throughout DNR, but I was part of that decision and think it was a            
 good decision - and think it is a good decision, going through the            
 public process we could see that given the rationale that we have             
 for logging these areas and for having created some of the negative           
 impacts of logging, particularly roading, you know that given our             
 goal of bringing back a mosaic of different age classes of timber             
 after the bark beetle that it wouldn't make much sense to go in               
 there and log and not provide for reforestation.  So, you know, we            
 are committed to it on state land that after salvage sales just as            
 on other kinds of sales we do reforestation, but it's not a                   
 requirement in the law.  It's a policy decision that's been made at           
 DNR for state land that DNR manages.                                          
                                                                               
 MR. ECKLAND:  A quick follow-up Mr. Chairman.                                 
                                                                               
 CO-CHAIRMAN GREEN:  Yes, is that you Pete?                                    
                                                                               
 Number 2552                                                                   
                                                                               
 MR. ECKLAND:  Yes, I'm just wondering does that have an effect on             
 the possible bidders and the economics of some of these sales.                
                                                                               
 MR. BOUTIN:  It sure does, Pete.  We do require the operator to do            
 most of the reforestation - pick up most of the reforestation                 
 costs.  And so that just about always includes the scarification,             
 but it very very often includes also the planting and we take                 
 responsibility - that is the state takes responsibility for                   
 providing the seedlings which is not a large part of the                      
 reforestation cost.  And so you bet, when a bidder is bidding on              
 the timber on a state sale they have to, of course, build all the             
 road.  And down on the Kenai we committed to all roads being erased           
 after the logging and reforested.  That was too something that is             
 very important to the public and to the various agencies, but the             
 bidder does commit also to doing some material portion of the                 
 reforestation - whatever we put in the bid perspectives.  And so it           
 does impact the economics of our timber sale program, you bet.                
                                                                               
 Number 2805                                                                   
                                                                               
 MR. ECKLAND:  Thank you Mr. Chairman.                                         
                                                                               
 CO-CHAIRMAN GREEN:  We've got a couple of minutes left if anybody             
 has any other questions or comments to make.  Can we pick up                  
 anything from the satellite stations first.  If not, we have a few            
 more comments from here, Representative Ogan.                                 
                                                                               
 Number 2823                                                                   
                                                                               
 REPRESENTATIVE OGAN:  I'd like some, Mr. Chairman thank you, some             
 clarification from a -- there is some inconsistencies in the                  
 testimony here today.  There was some discussion of the beetle kill           
 in the Homer area and the Kenai Peninsula in the 1900s and I'd like           
 to see how...                                                                 
                                                                               
 MR. TRASKY:  You can read it yourself right here.  It was 80 to 100           
 percent.  You can read the report yourself.  I have other copies              
 for everybody here.                                                           
                                                                               
 CHAIRMAN LEMAN:  Mr. Chairman, (indisc.) on that point.  Senator              
 Halford were wondering earlier in the meeting and maybe it was                
 addressed (indisc.) or somebody.  What has happened to that timber            
 that we purchased from Seldovia Native Association across the bay,            
 across Homer?  I mean is that fully devastated or largely                     
 devastated and is that essentially a worthless stand of timber now?           
                                                                               
 Number 2925                                                                   
                                                                               
 UNIDENTIFIED SPEAKER:  Been following that.  The beetles have moved           
 into that area quite heavily in the past few weeks.  So                       
 probably....                                                                  
                                                                               
 CHAIRMAN LEMAN:  (Indisc.)?                                                   
                                                                               
 UNIDENTIFIED SPEAKER:  Well no, into the (indisc.).  Three or four            
 years ago, very little beetle activity, but now it seem pretty                
 substantially infested.                                                       
                                                                               
 CO-CHAIRMAN GREEN:  Any other comments in closing?                            
                                                                               
 Number 2956                                                                   
                                                                               
 MR. BOUGHTON:  If I could make a closing comment.  Yes, this is               
 Jerry Boughton, again, Chair of the Society of American Foresters.            
 In the opening comments that I made I encouraged the committees to            
 try and overlook some of the what I referred to in the Kenai                  
 meeting as chasing hoochies and getting involved in little details            
 and keep a perspective on the big picture of this, and I'm really             
 encouraged to hear the comments from the committee members and I              
 think you're trying to do that.  What I heard in the testimony                
 today here is probably what I expected.  I heard a number of agency           
 individuals expressing basically normal processes.  They described            
 what has taken place.  They talked about having a variety of                  
 meetings and two year listings of things on sale schedules and this           
 is what has been done kinds of things.  I didn't see a lot of                 
 urgency expressed in that testimony.  Some of the other testimony,            
 I guess that's a human nature to go through denial when you have a            
 arm that needs to be cut off, you go the last minute before you're            
 gonna do that, you know you're gonna deny that you really have that           
 bad of a problem that you gotta do something.  I think I heard a              
 lot of that.  I heard a lot of "Well we haven't looked into that,             
 well we don't know for sure, well we've done some anecdotal                   
 monitoring but we really don't understand these relationships for             
 sure."  I think we've got to get past that denial and we've got to            
 say, "We've got a problem that -- lets dig in here and lets figure            
 out what's going on and figure out what the appropriate actions               
 are."  I also asked in my opening comments there I say, "You know             
 this gets often characterized as should we log or shouldn't we log.           
 Should we cut a tree or not cut a tree."  That needs to be looked             
 at more than that which is what Les Reed tried to indicate.  He               
 talked about ecosystem restoration.  There is a whole bunch of                
 values out there and there is a lot of things besides getting                 
 entrapped with, "Should we log or not log?"  Many of the comments             
 came right back down to that, if you noticed that.  I didn't hear             
 any discussions about other treatments.  We really didn't hear --             
 a little mention from the Forest Service, but not much about                  
 prescribed burning - or should we go out and do some reforestation            
 where we don't cut any trees.  Should we do some particular thing             
 for habitat restoration for whatever species.  None of that really            
 came up too much.  I think that's an area that's really gotta be              
 looked at and not get entrapped into.  This is a logging or not               
 logging question.  It's an ecosystem restoration issue.  In terms             
 of the time, we heard about comments and I think a lot of these               
 discussions are similar to the discussions that have happened for             
 years.  Many of your committee members and on the satellites, would           
 you believe we've been talking about this for years?  And that's              
 true.  We don't have years anymore.  You see this spike on the end            
 of this chart.  I mean this baby has gone in about three years from           
 a few 100,000 acres to 1.4 million acres.  I mean we are in a                 
 crisis situation.  Normal processes taking many many years.  In               
 fact, investing in long term studies to get some of these answers             
 is not gonna be a part of a viable solution.  We have a very                  
 serious situation that in recorded history with actual data -                 
 facts, there may be anecdotal information there that might indicate           
 something different - hard to interpret.  But this is actual                  
 surveys and measurements.  Nothing like this has ever happened in             
 Alaska before.  It's a very serious serious situation.  I would               
 certainly agree with some of the comments that were made in terms             
 of involving all stakeholders and shareholders and people of                  
 expertise.  However, as was indicated, when you don't have a lot of           
 data and you'll get a lot of different opinions, you've got to                
 really sort through that and try and figure out based on what you             
 can see and what hard data you have what's really going on and make           
 a decision based upon that.  Again, ecosystem restoration has got             
 to be the focus of this and I'm encouraged from the testimony from            
 a number of individuals and from the questions from the committees.           
 And I just offer SAF is another one of those objective sources of             
 input into your committee.  If you're considering legislation, we             
 do have a legislative liaison position, Mr. Wayne Nichols, who has            
 worked with a number of your committee members, I think before.               
 And we would certainly offer that service into the next session.              
                                                                               
 Number 3509                                                                   
                                                                               
 CO-CHAIRMAN GREEN:  Yes, Jack.                                                
                                                                               
 MR. PHELPS:  Yeah, I just had a final comment on economics.  When             
 it was mentioned a few moments ago about Alaska law not requiring             
 reforestation on salvage sales, I agree with Mr. Boutin that it               
 makes good sense, it's good policy to reforest in those areas given           
 the discussion we've had today.  It may be critically important.              
 It may be one of the best reasons for having timber sales, but I              
 would point out to you that Alaska law makes a provision for 25               
 percent of stumpage receipts to go back into reforestation on our             
 state lands.  We have not historically funded that, gentlemen, and            
 I think it's very important that when you start designing sales on            
 marginal timber and you build reforestation costs into the                    
 stumpage, you may kill the economics on sales.  Maybe the state               
 ought to look at on those salvage sales - saying up front, "We're             
 not gonna build that cost.  We're not gonna put that cost on the              
 stump, we're not gonna build that cost into the operators                     
 expenses."  We're gonna say, "We're gonna sell it at a free market            
 value and we're gonna commit to take 25 percent of the stumpage               
 receipt on the state general fund and put it into reforestation."             
 I think you might be able to solve some of you economic problems of           
 selling timber sales if you do it that way.                                   
 Number 3532                                                                   
                                                                               
 CHAIRMAN LEMAN:  We're you looking over my shoulder when I wrote              
 that note to Joan just a few minutes ago.                                     
                                                                               
 MR. PHELPS:  No, just great minds Loren.                                      
                                                                               
 CO-CHAIRMAN GREEN:  I champion that and that's what I had in mind             
 when I was talking about lets look at the possibilities of the full           
 spectrum of possibilities and then we could sort through whether or           
 not the state gets involved, whether it can do it some other way.             
 Maybe we're looking at incentives for other industries.  Maybe                
 there's got to be an incentive for logging dead timber, I don't               
 know.  But we shouldn't look at only those places that are                    
 economically (indisc.).  Yes.                                                 
                                                                               
 Number 3700                                                                   
                                                                               
 MR. TRASKY:  Just one last comment.  Our research into this bark              
 beetle problem - very extensive and Steve just reminded me we wrote           
 157 letters to all the Canadian provinces, all the universities               
 that have Forestry Departments, the Forest Service and everybody              
 else, asking for them to provide us with the information on the               
 impacts the spruce bark beetle outbreaks on fish and wildlife.  We            
 did not get anything back.  Nobody had any substantial information,           
 so we really exhausted that.  If people have scientific                       
 documentation of impacts, we'd like to know about it because we're            
 concerned.  If it is having an impact, we're not seeing it in our             
 research or anything else, but we would like to know about it and             
 if there is, we'll press for whatever measures we feel are                    
 appropriate and we haven't seen that.  And you know I could say               
 there is an information out there...                                          
                                                                               
 Number 3747                                                                   
                                                                               
 SENATOR LEMAN:  My kids could show you a way to get that a lot                
 faster, get on the internet.                                                  
                                                                               
 MR. TRASKY:  We did search the internet.                                      
                                                                               
 DR. MOORE:  Mr. Chairman, just again on this issue, I think it was            
 made very clear by the representative from the fish and wildlife              
 that this does have a severe impact on many species such as marbled           
 merlots and songbirds.  Obviously, just have to look with your                
 eyes, if the trees are gone there is not a place for the tree                 
 living species to be any more.  So it definitely has a negative               
 impact on all those species that require the canopies of the trees            
 and the cover of the trees and the seeds of the trees and the                 
 nesting sites in the trees, et cetera, et cetera, et cetera.  There           
 is simply no question about that and just because you write letters           
 to all these people and don't get any answer back doesn't mean that           
 there isn't a real effect in the real world when these trees are              
 dead.                                                                         
                                                                               
 Number 3838                                                                   
                                                                               
 CO-CHAIRMAN GREEN:  Now is there salvageability to a tree as long             
 as it's standing or does that diminish immediately with death?                
                                                                               
 DR. MOORE:  Three years you can make good sawlogs out of it, 8 to             
 15 years you can still make chips and oriented stand board and                
 other reconstitute type products out of it.  Once it falls over on            
 the ground, it starts to rot quite quickly, but even then it's                
 quite often salvageable.                                                      
                                                                               
 CO-CHAIRMAN GREEN:  Yes.                                                      
                                                                               
 MR. REED:  I was impressed yesterday and again today with Ed                  
 Holsten's sense of time.  It's time scale we have to keep in mind             
 here.  You're not gonna learn very much about impacting wildlife a            
 year after the tree dies, but what he's saying to me is this:  "You           
 have subsequent breakup of the stand, and there are pictures here             
 to demonstrate this, you have succession in many areas to grass,              
 you have fire risks which are inordinately high, and you have in              
 this particular case a special scale of disturbance which is                  
 unprecedented."  I would just say that here is the Copper River               
 drainage and all those blue, now you're gonna take all of the                 
 spruce cover out of there and then you, you know, intuitively we              
 don't need an expert to tell us that the moose are gonna be in                
 trouble for winter shelter or for whatever.  So I would urge you to           
 keep, as I used to my students say, don't forget to distinguish               
 between the short term and the long term.  And the long term in               
 this case may take you 10 - 20 years or more to get to that full              
 impact.  So it's gonna be there, may take awhile.  Finally, I will            
 undertake to go back to some university researchers and industry              
 people who have had a lot of first hand experience with insect                
 outbreaks, doesn't have to be the spruce bark beetle, it can be the           
 mountain pine beetle, the spruce bud worm, a hundred other kinds of           
 insects and I can tell you I know right now what the answer is.               
 The impacts on wildlife and fish habitat are enormous.  I want to             
 thank, on behalf of Patrick and I, you people in the legislative              
 committee for having the kindness to invite us and to let us speak            
 frankly.  So before we go, I just wanted to say that on behalf of             
 our (indisc.).                                                                
                                                                               
 Number 4209                                                                   
                                                                               
 CO-CHAIRMAN GREEN:  Well thank you for coming.  Thank you for                 
 actually getting a very good discussion, I believe, starting.  I              
 will vow that I can't, on my own, keep it going, but I certainly              
 will not (indisc.) for wanting to keep the fires going because I              
 think it imperative that whatever the answer is, we come up with              
 something.  I think you've got the right idea, whether it's a                 
 spruce bark beetle kill or some fungus or something else, if the              
 tree dies what happens to the rest of the environment - and there             
 is data on that, then lets certainly have it.  I would appreciate             
 that very much.  Thank you all for coming.                                    
                                                                               

Document Name Date/Time Subjects