Legislature(1997 - 1998)

01/31/1997 03:39 PM House RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                   JOINT MEETING                                               
        SENATE RESOURCES STANDING COMMITTEE                                    
         HOUSE RESOURCES STANDING COMMITTEE                                    
                  January 31, 1997                                             
                     3:39 p.m.                                                 
                                                                               
                                                                               
SENATE MEMBERS PRESENT                                                         
                                                                               
Senator Rick Halford, Chairman                                                 
Senator Lyda Green, Vice Chair                                                 
Senator Bert Sharp                                                             
Senator John Torgerson                                                         
                                                                               
SENATE MEMBERS ABSENT                                                          
                                                                               
Senator Loren Leman                                                            
Senator Georgianna Lincoln                                                     
Senator Robin Taylor                                                           
                                                                               
OTHER SENATE MEMBERS PRESENT                                                   
                                                                               
Senator Jerry Ward                                                             
                                                                               
HOUSE MEMBERS PRESENT                                                          
                                                                               
Representative Bill Hudson, Co-Chairman                                        
Representative Scott Ogan, Co-Chairman                                         
Representative Fred Dyson                                                      
Representative Joe Green                                                       
Representative Reggie Joule                                                    
Representative Irene Nicholia                                                  
                                                                               
HOUSE MEMBERS ABSENT                                                           
                                                                               
Representative Beverly Masek, Vice Chair                                       
Representative Ramona Barnes                                                   
Representative William K. (Bill) Williams                                      
                                                                               
COMMITTEE CALENDAR                                                             
                                                                               
BRIEFING:  COMINCO ALASKA INCORPORATED                                         
                                                                               
BRIEFING:  NATIONAL PARK SERVICE                                               
                                                                               
(* First public hearing)                                                       
                                                                               
PREVIOUS ACTION                                                                
                                                                               
No previous action to record                                                   
                                                                               
WITNESS REGISTER                                                               
                                                                               
JOHN KEY, General Manager                                                      
Cominco Alaska Incorporated                                                    
Red Dog Mine                                                                   
P.O. Box 1230                                                                  
Kotzebue, Alaska 99752                                                         
Telephone:  (907) 426-2170                                                     
POSITION STATEMENT:  Provided information on Cominco Alaska                    
                     Incorporated.                                             
                                                                               
DOUG HORSWILL, Vice President                                                  
Environment and Corporate Affairs                                              
Cominco Limited                                                                
200 Burrard, Suite 500                                                         
Vancouver, British Columbia                                                    
Canada V6C3L7                                                                  
Telephone:  (604) 682-0611                                                     
POSITION STATEMENT:  Provided information on Cominco Limited, the              
                     zinc industry, and other exploration in the               
                     state of Alaska.                                          
                                                                               
CHARLOTTE MacCAY, Senior Administrator                                         
Environmental and Regulatory Affairs                                           
Cominco Alaska Incorporated                                                    
Red Dog Mine                                                                   
1133 West 15th Avenue                                                          
Anchorage, Alaska 99501                                                        
Telephone:  (907) 272-2117                                                     
POSITION STATEMENT:  Provided information on the National Park                 
                     Service Road Agreement and the permitting                 
                     difficulties for the Red Dog Mine.                        
                                                                               
SARAH SCANLON, Vice President                                                  
Corporate Affairs                                                              
NANA Regional Corporation, Incorporated                                        
1001 East Benson Boulevard                                                     
Anchorage, Alaska 99508                                                        
Telephone:  (907) 265-4101                                                     
POSITION STATEMENT:  Provided information on the benefits of the               
                     Red Dog Mine to the region.                               
                                                                               
BOB BARBEE, Regional Director                                                  
Alaska Region                                                                  
National Park Service                                                          
2525 Gambell Street                                                            
Anchorage, Alaska, 99503                                                       
Telephone:  (907) 257-2690                                                     
POSITION STATEMENT:  Provided information on the National Park                 
                     Service in Alaska.                                        
                                                                               
JIM BRADY, Superintendent                                                      
Glacier Bay National Park and Preserve                                         
P.O. Box 140                                                                   
Gustavus, Alaska 99826                                                         
Telephone:  (907) 697-2230                                                     
POSITION STATEMENT:  Provided information on the Glacier Bay                   
                     National Park and Preserve.                               
                                                                               
STEVE MARTIN, Superintendent                                                   
Denali National Park and Preserve                                              
P.O. Box 9                                                                     
Denali Park, Alaska 99755                                                      
Telephone:  (907) 683-2294                                                     
POSITION STATEMENT:  Provided information on the Denali National               
                     Park and Preserve.                                        
                                                                               
ACTION NARRATIVE                                                               
                                                                               
TAPE 97-8, SIDE A                                                              
Number 001                                                                     
                                                                               
CHAIRMAN RICK HALFORD called the joint meeting of the Senate and               
House Resources Standing Committees to order at 3:39 p.m.  Senate              
members present at the call to order were Halford, Green and                   
Torgerson.  House members present at the call to order were                    
Representatives Ogan, Green, Nicholia and Joule.  Representatives              
Hudson and Dyson arrived at 3:42 p.m.                                          
                                                                               
BRIEFING: COMINCO ALASKA INCORPORATED                                          
                                                                               
Number 017                                                                     
                                                                               
JOHN KEY, General Manager, Cominco Alaska Incorporated, Red Dog                
Mine, introduced the following presenters:  Sarah Scanlon, Vice                
President, Corporate Affairs, NANA Regional Corporation,                       
Incorporated; Charlotte MacCay, Senior Administrator, Environmental            
and Regulatory Affairs, Cominco Alaska Incorporated, Red Dog Mine;             
and Doug Horswill, Vice President, Environment and Corporate                   
Affairs, Cominco Limited.                                                      
                                                                               
MR. KEY explained that the briefing would include background                   
information on Cominco Limited and the zinc industry; a video on               
the Red Dog Mine; the building blocks of putting the Red Dog Mine              
together, the future of the mine; and lastly, comments on the                  
ability of Alaska to attract further exploration in mining.                    
                                                                               
MR. KEY called on Doug Horswill to provide information on Cominco              
Limited and the zinc industry.                                                 
                                                                               
Number 051                                                                     
                                                                               
DOUG HORSWILL, Vice President, Environment and Corporate Affairs,              
Cominco Limited, referred to a handout titled, "Cominco," and                  
explained the company is Canadian-based, established in 1906.                  
Currently, Cominco Limited is the world's largest zinc mining                  
company, the world's third largest zinc refining company, and the              
leader in technology with sales at about $1.6 billion.  Mr.                    
Horswill said, "Red Dog is a jewel in Cominco's crown, as we think             
it is in Alaska."                                                              
                                                                               
MR. HORSWILL referred to a handout titled, "Product Contribution to            
Revenue (1996)," which illustrated that zinc and zinc-related                  
products amounted to 73 percent of Cominco's total revenue.                    
                                                                               
MR. HORSWILL referred to a handout titled, "Western World Refined              
Zinc Consumption by End-Use (1996)," which illustrated that zinc               
was primarily used for sheet and general galvanization, alloys,                
brass, bronze, and oxides.                                                     
                                                                               
MR. HORSWILL stated zinc generally follows the economy in terms of             
growth and demand.  He referred to a handout titled, "Western World            
Refined Zinc Consumption," which illustrated consumption from 1980             
to 1997 at 2.3 percent - the growth of the world's economy.  For               
example, in developed countries such as the United States and                  
Japan, consumption was about ten pounds per capita.  In China,                 
consumption was about one pound per capita.  In India, consumption             
was about one-fourth pound per capita.  Therefore, as the world's              
population grew richer, the potential for zinc growth would be                 
enormous.                                                                      
                                                                               
MR. HORSWILL explained that the past five years have been a                    
questionable period, however.  He referred to a handout titled,                
"LME Zinc," which illustrated the price of zinc from 1992 to 1996.             
The price of zinc in 1992 was about 60 cents.  The price plummeted             
to 40 cents after 1992 as a result of the outflow of metals from               
the Soviet Union and China, causing the stock prices on the London             
Metals Exchange to rise to record levels.  However, by 1994 Western            
consumption had caught up and passed Western production and imports            
from the East, causing the stock prices to fall.  Currently, he                
stated, the stock prices are moving towards "normal levels," at                
which point demand will impact prices again.                                   
                                                                               
MR. HORSWILL explained the consequence was a product of aggregate              
profitability.  He referred to a handout titled, "Zinc Industry                
Profitability," which illustrated the aggregate profitability from             
1989 to 1995.  The aggregate profitability had been below the cost-line for muc
is confident that the gap will form again in the right direction in            
the future.                                                                    
                                                                               
MR. HORSWILL referred to a handout titled, "Top 10 Western World               
Zinc Mines - 1996 Production," which illustrated the top mines for             
contained zinc.  The Red Dog Mine was ranked number one at 325,000             
tons.  The number is expected to rise by 1999 to 500,000 tons,                 
three-quarters of a billion dollars in export revenue for the state            
of Alaska every year.                                                          
                                                                               
MR. HORSWILL referred to a handout titled, "Alaska Leads the World             
in Zinc Reserves," which illustrated the top mines for remaining               
reserves.  The Red Dog Mine was twice as large as the next mine -              
Century.                                                                       
                                                                               
MR. HORSWILL concluded by stating that - currently - Alaska is the             
world's leader in zinc as a result of the partnership between                  
Cominco Limited, the state of Alaska, and the NANA Regional                    
Corporation, Incorporated.                                                     
                                                                               
Number 184                                                                     
                                                                               
MR. KEY referred to a handout titled, "Red Dog Beginning," which               
illustrated the building blocks of the Red Dog Mine.  He explained             
the first building block was the NANA Land Agreement.  It was an               
agreement whereby the NANA Regional Corporation, Incorporated                  
retained the ownership of the land while Cominco Limited leased the            
resources from the land.  He also explained that the equipment is              
paid for and owned by Cominco Limited.  At present, the NANA                   
Regional Corporation, Incorporated receives a royalty of 4.5                   
percent of the net smelter return (NSR).  And, when the capital is             
paid for, the NANA Regional Corporation, Incorporated will receive             
25 percent of the revenue, increasing in increments of 5 percent               
every 5 years, until it reaches the cap set at 50 percent.  Also,              
included in the NANA Land Agreement were three committees:  an                 
operation committee, an employment committee, and a subsistence                
committee.                                                                     
                                                                               
MR. KEY explained the second building block was the Alaska                     
Industrial Development and Export Authority (AIDEA) Road/Port                  
Agreement approved by the Alaska State Legislature in the 1980s.               
The legislature provided $150 million for the development of a road            
between the mine and port site, and the shipping and storage                   
facilities.  In addition, the agreement required that Cominco                  
Limited pay back on a use-basis.  Currently, the state of Alaska               
receives $12 million a year.  In the first 10 years of production,             
AIDEA received in excess of $100 million in payments back from its             
investment.                                                                    
                                                                               
MR. KEY called on Charlotte MacCay to address the National Park                
Service Road Agreement and the permitting difficulties associated              
with the beginning of the Red Dog Mine.                                        
                                                                               
Number 217                                                                     
                                                                               
CHARLOTTE MacCAY, Senior Administrator, Environmental and                      
Regulatory Affairs, Cominco Alaska Incorporated, Red Dog Mine,                 
explained a 50 mile road was needed to get the concentrates from               
the mine to the sea.  However, the area was surrounded by national             
park service lands. Therefore, after weighing the subsistence use              
areas, the wildlife habitat areas and the fisheries, the route with            
the least impact was through a national park which required                    
approval from the President of the United States.  At present, the             
road works well and it is often referred to as a model road by the             
United States Park Service in terms of dust control and management.            
                                                                               
MS. MacCAY further explained there have been other greater                     
environmental permitting problems which have caused delays and cost            
money.  The main reason was because the state of Alaska adopted                
most of its regulations straight from other states or from federal             
regulations.  They were not tailored to meet the unique conditions             
in Alaska.  She explained the Red Dog Mine was sited from the air              
because of its bright orange color due to the metals naturally                 
bleaching out of the ore body.  There was no aquatic life in the               
stream yet it was still held to the same criteria as a pristine                
stream.  She stated, in-order-to deal with these types of issues,              
reclassification of the stream and site-specific criteria was                  
needed.  Discussions started over 10 years ago with the Department             
of Environmental Conservation (DEC) with active negotiations only              
occurring in the past 4 years.  It has only been in the last year              
and a half that progress has been made.  In addition, Cominco                  
Limited has been trying to renew a discharge permit since 1989 but             
it has been delayed due to both state and federal issues.                      
                                                                               
MS. MacCAY further stated it was very, very difficult for an                   
operation to plan with such uncertainty.  It was an interesting                
juxtaposition because the state with the world's greatest zinc                 
asset was being held up by details.                                            
                                                                               
Number 270                                                                     
                                                                               
MR. KEY referred to a handout titled, "Commitment to Red Dog," and             
explained the initial investment by Cominco Limited to the Red Dog             
Mine was $250 million.  An additional investment of $35 million was            
added to upgrade the metallurgical facilities and $46 million was              
added towards environmental improvements.  He reiterated, at                   
present, the commitment made by Cominco Limited has been met to                
both the state of Alaska and the NANA Regional Corporation,                    
Incorporated.                                                                  
                                                                               
Number 292                                                                     
                                                                               
MR. KEY showed a short video on the Red Dog Mine.                              
                                                                               
Number 388                                                                     
                                                                               
MR. KEY clarified from the video in regards to jobs, that there                
were between 150 to 160 construction workers on-site last year.                
There will be around 250 construction workers on-site in 1997.                 
They will not be permanent jobs, but approximately 30 permanent                
jobs will be needed to operate the facility.  And, Cominco Limited             
is committed to placing NANA Regional Corporation, Incorporated                
shareholders with these jobs.                                                  
                                                                               
MR. KEY called on Sarah Scanlon to address the benefits of the Red             
Dog Mine to the region.                                                        
                                                                               
Number 401                                                                     
                                                                               
SARA SCANLON, Vice President, Corporate Affairs, NANA Regional                 
Corporation, Incorporated, explained there were many benefits in               
addition to the monetary payments to the region.  She cited about              
200 of the 400 jobs went to local folks totaling $13 million per               
annum in payroll.  Statewide, the payroll totals $22 million per               
annum, and about $24 million went to vendors and suppliers                     
throughout the state.                                                          
                                                                               
MS. SCANLON further stated that the NANA Regional Corporation,                 
Incorporated has enjoyed a partnership concept through local                   
control.  She explained schools were being improved and careers                
were being discussed like never before.  There was discussion on               
planning to place workers from welfare.  The Red Dog Mine's alcohol            
and drug free policy has positively impacted the region.  And, in              
addition, the NANA Regional Corporation, Incorporated shared 70                
percent of its resource revenues with the other regional                       
Corporations in accordance with the Alaska Native Claims Settlement            
Act.                                                                           
                                                                               
Number 441                                                                     
                                                                               
MR. KEY referred to a handout titled, "Returns from Red Dog," which            
illustrated the operating profit from 1990 to 1996.  Mr. Key                   
explained that Cominco Limited has "racked up" a total of $152                 
million in operating debt.  A combination of the operating debt and            
the capital totaled up to $600 million.  However, at present,                  
performance and the price of zinc are improving thereby improving              
the numbers.  Mr. Key reiterated the reasons why Cominco Limited               
was dedicated to the Red Dog Mine.                                             
                                                                               
MR. KEY referred to a handout titled, "Red Dog Reserves," and                  
explained there were 52 million tons of reserves in the main body,             
76 million tons in the aqqaluk body, and 10 million tons in the                
hilltop body.  Mr. Key referred to a handout titled, "Red Dog-Aqqaluk Drill Sec
sections.                                                                      
                                                                               
Number 485                                                                     
                                                                               
REPRESENTATIVE JOE GREEN stated the third body looked deep.  He                
wondered whether the company planned to strip-mine the body or use             
some other kind of method?                                                     
                                                                               
MR. KEY replied it would depend on the delineation of the total                
reserve.  Currently, it looks like it will be mined underground.               
                                                                               
MR. KEY called on Doug Horswill to explain about other exploration             
in Alaska and how it was viewed in the world stage.                            
                                                                               
Number 493                                                                     
                                                                               
MR. HORSWILL explained that Alaska in general was important to                 
Cominco Limited, not just the Red Dog Mine.  Currently, Cominco                
Limited is exploring a gold property called "pebble" and working in            
the area around Nome.                                                          
                                                                               
Number 510                                                                     
                                                                               
MR. HORSWILL referred to a handout titled, "U.S. Share of Global               
Exploration Expenditures," which illustrated the exploration                   
expenditures from 1992 to 1996.  He explained there has been a                 
drastic reduction in the share of total exploration dollars coming             
into the country, while it was the opposite in Indonesia, Latin                
America and the Pacific Basin.  There has been a reduction in                  
exploration expenditures partly because of the perceptions in the              
minds of the decision makers.  He declared, the geology has not                
changed, but there was always a question of politics in the minds              
of the decision makers in terms of permits.                                    
                                                                               
MR. HORSWILL further stated it was important to ensure that the                
regulatory agencies have sufficient resources to administer the                
regulations.  It was also important to facilitate the access of                
lands while at the same time protect the environment.  It was also             
important to focus on the infrastructure to help reduce the cost of            
working in remote areas.  And, in addition, it was also important              
to foster positive attitudes through the help of the legislature               
and the industry.                                                              
                                                                               
Number 555                                                                     
                                                                               
MR. KEY stated, in regards to infrastructure, it was tough to go               
into a remote location and supply all the goods.  He cited Peru, an            
undeveloped country, had roads and power supplies while Alaska did             
not.  He suggested that the state evaluate the affordability of                
infrastructure against the expected returns.  At present, the                  
potential in Alaska is unbelievable.  It is only a matter of being             
able to get to the resources.                                                  
                                                                               
Number 566                                                                     
                                                                               
MR. KEY stated, in regards to fostering positive attitudes, mine               
development could occur as long as it was governed by good                     
environmental practices.  Cominco Limited did not have a problem               
with good environmental practices.  It had a problem with the fact             
that good environmental practices were not being defined by                    
scientists or the legislature.  They were being defined by the                 
environmental movement.  He relayed to the committee members the               
framework of a good environmental practice.                                    
                                                                               
Number 585                                                                     
                                                                               
CHAIRMAN HALFORD called for a 5 minute recess at 4:25 p.m.                     
                                                                               
TAPE 97-8, SIDE B                                                              
Number 001                                                                     
                                                                               
CHAIRMAN HALFORD called the joint meeting of the Senate and House              
Resources Committees back to order at 4:31 p.m.                                
                                                                               
BRIEFING:  NATIONAL PARK SERVICE                                               
                                                                               
Number 004                                                                     
                                                                               
BOB BARBEE, Regional Director, Alaska Region, National Park                    
Service, asked the following individuals to join him at the table:             
Steve Martin, Superintendent, Denali National Park and Preserve;               
and Jim Brady, Superintendent, Glacier Bay National Park and                   
Preserve.                                                                      
                                                                               
MR. BARBEE stated last week the National Park Service (NPS) was in             
Washington D.C. reminding the congressional delegation that two-thirds of the N
NPS also reminded the congressional delegation that it has been 16             
years since the Alaska National Interest Lands Conservation Act                
(ANILCA) was passed.                                                           
                                                                               
MR. BARBEE further stated, at present, the NPS is looking towards              
a vision for the twenty-first century, keeping in mind the tourist             
industry in Alaska, and a user-friendly park service.  The                     
following are the three general areas that the NPS is looking                  
towards:  managing the current lands, accommodating the visitors,              
and building stronger community alliances.  He referred the                    
committee members to a booklet titled, "Alaska."                               
                                                                               
Number 130                                                                     
                                                                               
MR. BARBEE explained there are developmental plans for the                     
Wrangell-St. Elias National Park and Preserve including a road to              
McCarthy.  There are also plans for trails and a visitor center                
near Copper Center.  The Kenai Fjords National Park, the Sitka                 
National Historic Park and the Klondike Gold Rush National Historic            
Park are small areas but attract a tremendous amount of visitors.              
The Klondike Gold Rush National Historic Park experiences a 12                 
percent increase in visitation every year.  He also explained there            
is a developmental plan for a visitor center in Nome.                          
                                                                               
NUMBER 153                                                                     
                                                                               
MR. BARBEE further stated the Denali National Park and Preserve and            
the Glacier Bay National Park and Preserve are the lynchpins in the            
tourist industry.  Currently, the Glacier Bay National Park and                
Preserve is looking to expand in Bartlett Cove.                                
                                                                               
Number 178                                                                     
                                                                               
CHAIRMAN HALFORD referred the committee members to page 2 of the               
booklet titled, "Alaska," and read, "the vast majority of park                 
lands were vulnerable to air pollution, oil spills, wildlife                   
poaching, archeological looting and 'commercial fishing.'"  He                 
said, "I think the combination of 'commercial fishing,' a renewable            
resource activity which is legal, which is positive, and which is              
a major historical benefit to the state of Alaska, in that list is             
a very serious error in putting together a booklet."                           
                                                                               
Number 190                                                                     
                                                                               
MR. BARBEE replied the reason for including commercial fishing was             
because of the issues surrounding the Glacier Bay National Park and            
Preserve.                                                                      
                                                                               
MR. BARBEE called on Jim Brady to address the concerns of Glacier              
Bay National Park and Preserve.                                                
                                                                               
Number 199                                                                     
                                                                               
JIM BRADY, Superintendent, Glacier Bay National Park and Preserve,             
explained the park is trying to find a way to phase out commercial             
fishing in the bay proper.  It has been working for the past six               
months with individuals, Native groups, conservation groups,                   
commercial fishing groups, community members and the state.  The               
park is now waiting for a recommendation from the United States                
Secretary of Interior for the next move and for a draft proposal to            
continue discussions.  He expects a final ruling by the end of                 
1997.                                                                          
                                                                               
Number 230                                                                     
                                                                               
CHAIRMAN HALFORD stated it seemed inconsistent to see a few                    
commercial fishing vessels being treated as a hazard to the value              
of the park.  It was the same inconsistency seen through the Denali            
National Park and Preserves' proposals to cut off traditional and              
smalltime access by Alaskans, and to sell it to out-of-state                   
corporations.                                                                  
                                                                               
Number 242                                                                     
                                                                               
REPRESENTATIVE BILL HUDSON stated that he has followed the Glacier             
Bay National Park and Preserve for the past 20 years and has never             
seen a good reason for a plan to eliminate commercial fishing in               
the area.  He declared it was more of an arbitrary decision made by            
the National Park Service.                                                     
                                                                               
Number 254                                                                     
                                                                               
MR. BRADY explained that, at present, the NPS is trying to meet a              
park preservation mission.                                                     
                                                                               
Number 265                                                                     
                                                                               
REPRESENTATIVE HUDSON stated that commercial fishing is an asset to            
the lifestyle in the bay area.                                                 
                                                                               
Number 272                                                                     
                                                                               
MR. BRADY replied that, clearly, there is a lot of value to                    
commercial fishing.                                                            
                                                                               
UNIDENTIFIED SPEAKER wondered how a 30,000-ton cruise ship compares            
to a 32-foot gillnetter in terms of park value.                                
                                                                               
MR. BRADY replied the reason for the park is the visitors. The                 
visitors do not come to the park via commercial fishing vessels,               
they come via cruise ships.                                                    
                                                                               
Number 280                                                                     
                                                                               
MR. BARBEE stated he would consider taking the term "commercial                
fishing" from the list of other vulnerabilities in future                      
publications of the booklet.                                                   
                                                                               
Number 283                                                                     
                                                                               
REPRESENTATIVE SCOTT OGAN asked Mr. Brady whether there were any               
plans to close Dundas Bay to motorized vessel traffic.                         
                                                                               
MR. BRADY replied, "No."                                                       
                                                                               
Number 288                                                                     
                                                                               
SENATOR JERRY WARD asked Mr. Barbee whether there was a mission                
statement.                                                                     
                                                                               
MR. BARBEE replied, "Yes."                                                     
                                                                               
STEVE MARTIN, Superintendent, Denali National Park and Preserve,               
stated the NPS has a mission statement for management.                         
                                                                               
SENATOR WARD wondered whether the issue of a cruise ship versus a              
fishing boat would be reflected in a mission statement.                        
                                                                               
UNIDENTIFIED SPEAKER replied, "Yes."                                           
                                                                               
SENATOR WARD asked for a copy of the mission statement.  He was                
curious as to how it would be worded.                                          
                                                                               
MR. MARTIN stated wording to accomplish the goals and objectives               
were included in a mission statement.                                          
                                                                               
Number 299                                                                     
                                                                               
SENATOR WARD wondered whether the mission statement was in error.              
                                                                               
Number 300                                                                     
                                                                               
SENATOR JOHN TORGERSON asked whether the mission statement was                 
suppose to have something to say about customary and traditional               
use in regards to the issue of commercial fishing versus cruise                
ships.                                                                         
                                                                               
MR. BRADY replied the issue has not been framed yet.                           
                                                                               
Number 312                                                                     
                                                                               
MR. BARBEE explained the fundamental difference was that commercial            
fishing harvests a resource while cruise ships did not.  Cruise                
ships were an avenue for visitors to see the park.  He called it a             
long-standing issue where a resource harvest has not been part of              
the development and evolution of the purpose for a national park.              
It was a value issue that needed to be solved with the least impact            
on the people effected.                                                        
                                                                               
Number 319                                                                     
                                                                               
SENATOR TORGERSON stated he considered it more of a federal lock up            
of land that was traditionally used by Alaskans, not a mission                 
statement from Washington D.C.                                                 
                                                                               
Number 328                                                                     
                                                                               
SENATOR TORGERSON further stated he was concerned about the in-holdings of priv
owners were guaranteed access to their lands, but they ran into                
difficulties when dealing with the park service to maintain their              
accesses.  Unless, of course, they were rich.  The latest                      
requirement from the park service was an environmental impact                  
statement for each access.  He wondered whether the NPS had given              
access to the owners or were the owners and the NPS still at                   
loggerheads.                                                                   
                                                                               
Number 333                                                                     
                                                                               
MR. BARBEE replied he would like to know - personally - about any              
unreasonable demands put on an owner.  Often times, the NPS did the            
environmental work.  For example, the NPS just provided the                    
documentation to allow for a water line onto private property in               
the Wrangell-St. Elias National Park and Preserve.                             
                                                                               
Number 336                                                                     
                                                                               
MR. MARTIN explained it depended on the request for access.  For               
example, in the Gates of the Arctic National Park and Preserve, the            
NPS performed the compliance on a request for a 4-wheel trail to               
access an allotment.  According to regulations, the NPS has to                 
choose the route with the least environmental impact.  He stated               
the road to Kantishna required a streamlined permitting process to             
get to an in-holding.  The request for a privately run railroad in             
the Denali National Park and Preserve, however, would be at a                  
different scale which would probably require private finances.  In             
general, that was not the case for simple accesses to in-holdings.             
                                                                               
Number 360                                                                     
                                                                               
REPRESENTATIVE OGAN asked Mr. Barbee to explain the language on                
page 4 of the booklet which read, "Failure to carry out purchases              
in a timely manner could result in further inverse condemnation                
actions by claim owners."  He wondered whether owners had a                    
constitutional right to keep their property without having Big                 
Brother leaning on them with deep pockets to force them out of                 
business.                                                                      
                                                                               
Number 366                                                                     
                                                                               
MR. MARTIN replied the language referred to mining claim                       
acquisitions.  He explained that the term "inverse condemnation"               
was the prevention of utilizing property for the purpose for which             
it was bought.  The Mining in the Parks Act resulted in regulations            
that governed how mining took place within the parks.  He cited                
Kantishna as an example of a difficult situation for miners because            
a park was established surrounding mining land.                                
                                                                               
Number 391                                                                     
                                                                               
CHAIRMAN HALFORD stated it was the difference between surrendering             
before or after a battle.                                                      
                                                                               
Number 392                                                                     
                                                                               
MR. MARTIN stated it was a tough situation that needed to be                   
reconciled.                                                                    
                                                                               
REPRESENTATIVE OGAN suggested that the NPS leave the miners alone.             
                                                                               
Number 396                                                                     
                                                                               
REPRESENTATIVE GREEN wondered whether a fishing vessel or two would            
be a deterrent to a visitor.  He thought it would enhance, rather              
than detract, the visit by showing how the locals operated.  He was            
opposed to being told from outsiders what visitors wanted to see.              
                                                                               
Number 407                                                                     
                                                                               
MR. BRADY replied it was a valid observation.  In addition, good               
science would be needed to help make decisions regarding commercial            
fishing vessels in the Glacier Bay National Park and Preserve.                 
                                                                               
CHAIRMAN HALFORD asked Mr. Brady what was the highest number of                
fishing boats that he had seen in the bay at one time.                         
                                                                               
MR. BRADY replied, "About 35."                                                 
                                                                               
CHAIRMAN HALFORD stated, "We're not talking about the North Line at            
Egegik or the South Line at Naknek."  If the number was frozen at              
35, that would be just enough for the tourists to enjoy.                       
                                                                               
Number 435                                                                     
                                                                               
MR. BRADY replied it was a valid point.  However, the NPS, at                  
present, is suggesting that commercial fishing take place outside              
of the bay proper.  The bay is already very special, requiring a               
limited entry.  There is a lot of competition for its use.  In-order-to limit t
experiences, the NPS needs to phase out commercial fishing in the              
bay.  The NPS is trying to find a fair way to do it.                           
                                                                               
Number 438                                                                     
                                                                               
REPRESENTATIVE GREEN stated if he was on a cruise ship he would                
prefer to see a fishing boat rather than another cruise ship.                  
                                                                               
MR. BRADY stated the NPS tries to space the cruise ships, but it               
was a good point.                                                              
                                                                               
Number 441                                                                     
                                                                               
MR. BARBEE stated that there were going to be areas of disagreement            
in regards to developing national parks and preservers, but there              
were multiple opportunities.                                                   
                                                                               
CHAIRMAN HALFORD stated it was a matter of disagreeing without                 
being disagreeable.                                                            
                                                                               
Number 451                                                                     
                                                                               
REPRESENTATIVE HUDSON wondered how it would be possible to return              
the resolution process to the lowest level:  the level where the               
policies would impact those that lived in the area.                            
                                                                               
Number 470                                                                     
                                                                               
MR. BARBEE replied the NPS would like every issue to stay at the               
lowest possible level.  Keep in mind, however, that the NPS has                
constituents at every level - local, state and federal - and on                
every side of the issues.                                                      
                                                                               
Number 480                                                                     
                                                                               
MR. MARTIN stated there were examples such as the Golden Zone Mine             
on the boundary of the Denali National Park and Preserve where                 
there was a chance that the south-side entrance to the park could              
also be used as an entrance to the mine.                                       
                                                                               
CHAIRMAN HALFORD announced in all fairness, it was the NPS that                
requested to come before the committee.                                        
                                                                               
Number 497                                                                     
                                                                               
SENATOR WARD stated that the stakeholders were the constituencies.             
                                                                               
SENATOR WARD asked for clarification regarding subsistence use in              
the national parks.                                                            
                                                                               
Number 508                                                                     
                                                                               
MR. BARBEE replied the preserves in Alaska that were added to the              
national park system allowed for traditional and customary use.                
                                                                               
CHAIRMAN HALFORD asked which of the parks were open to subsistence             
use.                                                                           
                                                                               
MR. BARBEE replied all of the preserves with exception to some of              
the Arctic parks were open to subsistence use.                                 
                                                                               
UNIDENTIFIED SPEAKER stated that the preserves even allowed sports             
hunting.  The Alaska National Interest Lands Conservation Act                  
allowed for subsistence in areas that were used customarily and                
traditionally.                                                                 
                                                                               
MR. BARBEE stated the majority of the park lands were open to                  
subsistence use.                                                               
                                                                               
Number 520                                                                     
                                                                               
CHAIRMAN HALFORD asked whether it was the intent of Mr. Brady to               
eliminate subsistence fishing in the Glacier Bay National Park and             
Preserve.                                                                      
                                                                               
Number 524                                                                     
                                                                               
MR. BRADY replied he was not sure what the meaning of subsistence              
fishing was.  The Glacier Bay National Park and Preserve is                    
excluded from subsistence concerns according to federal law.                   
                                                                               
SENATOR WARD wondered why the park was excluded even though there              
has been subsistence activity and commercial harvest for hundreds              
of years.                                                                      
                                                                               
Number 526                                                                     
                                                                               
MR. BRADY explained the Glacier Bay National Park and Preserve was             
a pre-ANILCA park.                                                             
                                                                               
CHAIRMAN HALFORD asked Mr. Brady whether it was the intent to phase            
out subsistence fishing along with commercial fishing.                         
                                                                               
MR. BRADY replied he could not feature any subsistence fishing                 
activity other than personal use.                                              
                                                                               
Number 531                                                                     
                                                                               
REPRESENTATIVE HUDSON stated there were individuals from Hoonah who            
were subsistence fishermen.                                                    
                                                                               
MR. BRADY stated, in regards to the Natives, there was a proposal              
to provide a provision to allow them to continue to subsistence                
fish.                                                                          
                                                                               
CHAIRMAN HALFORD asked Mr. Brady whether subsistence use was being             
defined by residence or race.                                                  
                                                                               
MR. BRADY replied it was still being worked on.                                
                                                                               
Number 541                                                                     
                                                                               
SENATOR TORGERSON asked Mr. Barbee if the extreme skiing issue has             
been resolved in Valdez.                                                       
                                                                               
Number 548                                                                     
                                                                               
MR. BARBEE replied it was an issue for the United States Forest                
Service, not the National Park Service.                                        
                                                                               
Number 546                                                                     
                                                                               
SENATOR TORGERSON stated last year United States Senator Frank                 
Murkowski introduced a bill to try to change the way the state of              
Alaska was treated in terms of access to lands.  He asked was there            
any discussion on future legislation in regards to access promised             
in ANILCA while he was in Washington D.C.                                      
                                                                               
Number 554                                                                     
                                                                               
MR. BARBEE replied there would probably be amendments made by the              
congressional delegation to ANILCA.                                            
                                                                               
MR. BARBEE reiterated that the NPS was concerned about access and              
accommodation of visitors to the parks.  Right now, there is not               
any legislation in regards to access, but there probably will be in            
the future.                                                                    
                                                                               
Number 562                                                                     
                                                                               
SENATOR TORGERSON stated he knew that there was legislation last               
year.  He was more curious whether or not Mr. Barbee had heard                 
about any legislation this year.                                               
                                                                               
SENATOR TORGERSON suggested that the Alaska division of the NPS                
testify before Congress in Washington D.C.  He was concerned about             
people testifying on behalf of Alaska that had never been to the               
state before.                                                                  
                                                                               
MR. BARBEE announced for clarification that the following parks are            
open to subsistence use:  the Kobuk Valley Park, the new additions             
to the Denali National Park and Preserve, the Gates of the Arctic              
National Park and Preserve and all national preserves.  He also                
announced that the following parks are closed to subsistence use:              
the Kenai Fjords National Park, the old Denali National Park and               
Preserve, the old Glacier Bay National Park and Preserve, ....                 
                                                                               
TAPE 97-9, SIDE A                                                              
Number 003                                                                     
                                                                               
SENATOR WARD asked Mr. Barbee whether he had a long-term                       
transportation plan throughout the NPS taking into consideration               
Revised Statute 2477.                                                          
                                                                               
MR. BARBEE replied every park had a general management plan that               
addressed the question of access and transportation.  For example,             
there were fifty commercial operators in the Gates of the Arctic               
National Park and Preserve to access the land.                                 
                                                                               
SENATOR WARD explained he was asking about road right-of-ways in               
regards to Revised Statute 2477.                                               
                                                                               
MR. BARBEE replied it was an issue of concern for the NPS, but it              
did not have a grand transportation plan.                                      
                                                                               
SENATOR WARD asked whether any promulgated regulations were                    
stopping the NPS from having a transportation plan.                            
                                                                               
NUMBER 035                                                                     
                                                                               
MR. BARBEE replied, "No."  He did not know of any regulations that             
prohibited the NPS from offering the opportunities to build new                
roads.                                                                         
                                                                               
MR. MARTIN explained it was tied more to park purposes and                     
opportunities.                                                                 
                                                                               
SENATOR WARD announced that was why he asked earlier for the                   
mission statement.                                                             
                                                                               
MR. MARTIN stated that the NPS was moving towards developing a plan            
for the big picture to help mesh some of the priorities.                       
                                                                               
Number 061                                                                     
                                                                               
SENATOR WARD wondered whether there was the possibility of                     
dovetailing plans of the NPS with mineral deposits, not just                   
tourist activities.  He wondered if a mission statement would allow            
for something like that.                                                       
                                                                               
MR. BARBEE replied, if mineral extraction was the primary reason               
for a road, it probably would not allow it.  There were exceptions,            
however, and cited the road to the Red Dog Mine as an example.                 
                                                                               
SENATOR WARD stated that almost all of the roads in Alaska were                
built because of mineral extraction.  Therefore, it seemed logical             
to consider it.                                                                
                                                                               
MR. MARTIN cited the Golden Zone Mine road was a state right-of-way            
through a park which allowed for recreational opportunities as a               
spin off.  The mineral development was outside of the park,                    
however.                                                                       
                                                                               
Number 096                                                                     
                                                                               
CHAIRMAN HALFORD asked Mr. Martin whether the state right-of-way               
road was the original access to the Golden Zone Mine.                          
                                                                               
MR. MARTIN replied, "Yes."                                                     
                                                                               
Number 108                                                                     
                                                                               
CHAIRMAN HALFORD stated he could see the difference in the                     
environmental constituency and the developmental constituency in               
regards to the right-of-way road to the Golden Zone Mine.  But, he             
could not see a problem with the environmental constituency in                 
regards to a few gillneters in the Glacier Bay National Park and               
Preserve.  He could see a problem with increasing ship traffic,                
however, with the current air quality regulations.                             
                                                                               
Number 116                                                                     
                                                                               
MR. BARBEE replied the NPS not only has to deal with constituencies            
but industry regulations as well.                                              
                                                                               
Number 135                                                                     
                                                                               
CHAIRMAN HALFORD thanked everyone for providing information today.             
                                                                               
REPRESENTATIVE HUDSON stated maybe it would be possible to                     
collectively carry these issues to the congressional delegation in             
Washington D.C. for some resolution.                                           
                                                                               
MR. MARTIN stated the NPS knows there are going to be some                     
contentious issues ahead.                                                      
                                                                               
Number 153                                                                     
                                                                               
REPRESENTATIVE HUDSON stated the NPS should be equally concerned               
about the issue of Indian country.                                             
                                                                               
ADJOURNMENT                                                                    
                                                                               
CHAIRMAN HALFORD adjourned the joint meeting of the Senate and                 
House Resources Standing Committees at 5:27 p.m.                               

Document Name Date/Time Subjects