Legislature(2011 - 2012)BARNES 124

03/02/2012 01:00 PM House RESOURCES


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01:10:38 PM Start
01:10:56 PM HB340
02:07:23 PM Confirmation Hearings(s):|| Big Game Commercial Services Board|| Fishermen's Fund Advisory & Appeals Council
02:25:39 PM Board of Game
02:55:44 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Confirmation Hearings: TELECONFERENCED
Big Game Commercial Services Board
Board of Game
Fishermen's Fund Advisory & Appeals Council
*+ HB 340 PETERSVILLE RECREATIONAL MINING AREA TELECONFERENCED
Moved Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE RESOURCES STANDING COMMITTEE                                                                             
                         March 2, 2012                                                                                          
                           1:10 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Eric Feige, Co-Chair                                                                                             
Representative Paul Seaton, Co-Chair                                                                                            
Representative Alan Dick                                                                                                        
Representative Neal Foster                                                                                                      
Representative Cathy Engstrom Munoz                                                                                             
Representative Berta Gardner                                                                                                    
Representative Scott Kawasaki                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Peggy Wilson, Vice Chair                                                                                         
Representative Bob Herron                                                                                                       
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 340                                                                                                              
"An Act relating to the reservation of certain mining claims                                                                    
from all uses incompatible with the purposes for establishing                                                                   
the Petersville Recreational Mining Area."                                                                                      
                                                                                                                                
     - MOVED HB 340 OUT OF COMMITTEE                                                                                            
                                                                                                                                
CONFIRMATION HEARINGS(S):                                                                                                       
                                                                                                                                
Big Game Commercial Services Board                                                                                            
                                                                                                                                
     Don Quarberg - Delta Junction                                                                                              
     Michael Meekin - Palmer                                                                                                    
     Michele Metz - Douglas                                                                                                     
     Brenda Rebne - Anchorage                                                                                                   
                                                                                                                                
     - CONFIRMATION(S) ADVANCED                                                                                                 
                                                                                                                                
Fishermen's Fund Advisory & Appeals Council                                                                                   
                                                                                                                                
     Clay Bezenek - Ketchikan                                                                                                   
     James Herbert - Seward                                                                                                     
                                                                                                                                
     - CONFIRMATION(S) ADVANCED                                                                                                 
                                                                                                                                
Board of Game                                                                                                                 
                                                                                                                                
     Lynn Keogh, Jr. - Anchorage                                                                                                
                                                                                                                                
     - CONFIRMATION(S) ADVANCED                                                                                                 
                                                                                                                                
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 340                                                                                                                  
SHORT TITLE: PETERSVILLE RECREATIONAL MINING AREA                                                                               
SPONSOR(s): REPRESENTATIVE(s) NEUMAN                                                                                            
                                                                                                                                
02/22/12       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/22/12       (H)       RES                                                                                                    
03/02/12       (H)       RES AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
REPRESENTATIVE MARK NEUMAN                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified as prime sponsor of HB 340.                                                                    
                                                                                                                                
EDMUND FOGELS, Deputy Commissioner                                                                                              
Office of the Commissioner                                                                                                      
Department of Natural Resources (DNR)                                                                                           
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions regarding HB 340.                                                                     
                                                                                                                                
WYN MENEFEE, Chief of Operations                                                                                                
Central Office                                                                                                                  
Division of Mining, Land and Water                                                                                              
Department of Natural Resources (DNR)                                                                                           
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions regarding HB 340.                                                                     
                                                                                                                                
MICHELE STEVENS                                                                                                                 
Talkeetna, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 340.                                                                          
                                                                                                                                
KERWIN KRAUSE, Mineral Property Manager                                                                                         
Central Office                                                                                                                  
Division of Mining, Land and Water                                                                                              
Department of Natural Resources (DNR)                                                                                           
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions regarding HB 340.                                                                     
                                                                                                                                
DON QUARBERG, Appointee                                                                                                         
Big Game Commercial Services Board                                                                                              
Delta Junction, Alaska                                                                                                          
POSITION  STATEMENT:   Testified  as appointee  to  the Big  Game                                                             
Commercial Services Board.                                                                                                      
                                                                                                                                
MICHAEL MEEKIN, Appointee                                                                                                       
Big Game Commercial Services Board                                                                                              
Palmer, Alaska                                                                                                                  
POSITION  STATEMENT:   Testified  as appointee  to  the Big  Game                                                             
Commercial Services Board.                                                                                                      
                                                                                                                                
TINA BROWN                                                                                                                      
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Testified in opposition  to the appointment                                                             
of Mr. Lynn Keogh, Jr., to the Board of Game.                                                                                   
                                                                                                                                
JOE LETARTE, President                                                                                                          
Alaska Trappers Association (ATA)                                                                                               
Two Rivers, Alaska                                                                                                              
POSITION STATEMENT:   Testified in support of  the appointment of                                                             
Mr. Lynn Keogh, Jr., to the Board of Game.                                                                                      
                                                                                                                                
LYNN KEOGH, JR., Appointee                                                                                                      
Board of Game                                                                                                                   
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:   Testified  as appointee  to  the Board  of                                                             
Game.                                                                                                                           
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:10:38 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  ERIC   FEIGE  called   the  House   Resources  Standing                                                             
Committee meeting to order at  1:10 p.m.  Representatives Foster,                                                               
Gardner,  Dick, Seaton,  and Feige  were present  at the  call to                                                               
order.    Representatives  Kawasaki  and  Munoz  arrived  as  the                                                               
meeting was in progress.                                                                                                        
                                                                                                                                
          HB 340-PETERSVILLE RECREATIONAL MINING AREA                                                                       
                                                                                                                                
1:10:56 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FEIGE announced  that the first order  of business would                                                               
be HOUSE  BILL NO. 340,  "An Act  relating to the  reservation of                                                               
certain  mining  claims  from  all  uses  incompatible  with  the                                                               
purposes  for establishing  the  Petersville Recreational  Mining                                                               
Area."                                                                                                                          
                                                                                                                                
1:11:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MARK  NEUMAN,  Alaska  State  Legislature,  prime                                                               
sponsor, introduced  HB 340,  explaining it  is a  "fix-it" bill.                                                               
In  1995  under  the   Hickel  Administration,  his  constituent,                                                               
Michele Stevens, had mining claims  on about 220 acres of federal                                                               
lands.   The State of  Alaska wanted  that land, so  it requested                                                               
Ms.  Stevens to  lift  her mining  claims so  the  land could  be                                                               
transferred  to the  state.   Ms.  Stevens agreed  to  do so  and                                                               
worked with Jules  Tileston, director of the  Division of Mining,                                                               
Land and Water at that time.   Harry Noah was commissioner of the                                                               
Department of  Natural Resources (DNR)  at that time.   The state                                                               
accepted the land and committed  to convey the mining claims back                                                               
to Ms.  Stevens.  However,  Alaska's statutes disallow  this from                                                               
happening  and Ms.  Stevens has  been working  to make  it happen                                                               
since then.   It is a  time sensitive issue, he  pointed out, and                                                               
he  has met  with  Ms.  Stevens, Ed  Fogels,  the current  deputy                                                               
commissioner of DNR, and the  Alaska Miners Association to figure                                                               
out how to get these mining  claims conveyed back to Ms. Stevens.                                                               
He  said the  language in  HB 340  allows the  state to  fix this                                                               
mistake.                                                                                                                        
                                                                                                                                
1:13:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARDNER  inquired  whether Ms.  Stevens  has  any                                                               
documentation of  the agreement  that the  state would  give back                                                               
the mining claims and then could not.                                                                                           
                                                                                                                                
REPRESENTATIVE  NEUMAN  replied  yes, Ms.  Stevens  has  multiple                                                               
documents.  Also, there is a  letter in the committee packet from                                                               
Mr. Tileston and Marty Rutherford,  deputy commissioner of DNR at                                                               
the  time that  it  was  DNR's intent  to  transmit these  mining                                                               
claims back to Ms. Stevens.   He explained that a technicality in                                                               
the way  the Alaska statutes are  written needs to be  fixed.  He                                                               
added that he  has personally spoken with Mr.  Tileston about Mr.                                                               
Tileston's desire to make Ms. Stevens whole again.                                                                              
                                                                                                                                
1:15:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KAWASAKI requested  an  explanation  of the  term                                                               
"recreational mining area".                                                                                                     
                                                                                                                                
REPRESENTATIVE NEUMAN deferred to Mr. Fogels.                                                                                   
                                                                                                                                
EDMUND FOGELS,  Deputy Commissioner, Office of  the Commissioner,                                                               
Department  of   Natural  Resources   (DNR),  responded   that  a                                                               
recreational mining  area is a  legislative designation  by which                                                               
land is  set aside for the  specific purpose of creating  an area                                                               
on which  people can recreate and  mine.  A normal  staked mining                                                               
claim  must be  worked  for mineral  production  in a  commercial                                                               
fashion  and   is  not  designed  for   recreational  or  tourism                                                               
purposes.   However, recreational  mining areas were  designed to                                                               
allow recreational and tourism activity  and are typically closed                                                               
to mineral entry so that normal mining claims cannot be staked.                                                                 
                                                                                                                                
1:17:14 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  FEIGE surmised  there are  limitations on  the size  of                                                               
equipment that can be used on a recreational mining claim.                                                                      
                                                                                                                                
MR. FOGELS believed there  is not and added that it  is up to the                                                               
legislature to decide how big of an area it wants to create.                                                                    
                                                                                                                                
1:17:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN,  returning to  Representative  Kawasaki's                                                               
question, said he  understood from talking with  Ms. Stevens that                                                               
her intent  was to  be able  to open these  areas so  that people                                                               
could recreationally try to find gold or other minerals.                                                                        
                                                                                                                                
REPRESENTATIVE KAWASAKI  asked for further explanation  about the                                                               
purpose of a recreational mining claim.                                                                                         
                                                                                                                                
MR.  FOGELS  answered  that  it  is  not  a  recreational  mining                                                               
"claim", it  is a  recreational mining "area",  which is  an area                                                               
that the legislature creates and  sets the rules for.  Typically,                                                               
some kind of management plan is  required to be in place and then                                                               
DNR has  the ability to go  to bid for concession  for someone to                                                               
operate  a recreational  mining area.   He  pointed out  that the                                                               
Crow Creek Mine  in Girdwood is a private  enterprise rather than                                                               
a state  recreational mining  area, but  it is  the same  kind of                                                               
operation - a  tourist-oriented business that charges  for a gold                                                               
pan and the opportunity to pan for some gold in the creek.                                                                      
                                                                                                                                
1:19:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KAWASAKI  inquired about  the differences  in what                                                               
would  be  required  for  a recreational  mining  area  versus  a                                                               
traditional mining claim.                                                                                                       
                                                                                                                                
MR.  FOGELS explained  that for  a traditional  mining claim  the                                                               
state's  mining laws  must  be followed  for  staking the  claim,                                                               
paying annual  rental, working  the claim,  and showing  that the                                                               
claim is being progressed.   Once there is an economic discovery,                                                               
the state's permitting  process must be undergone.   If the state                                                               
issues the  permits, the mine  can be  built and people  hired to                                                               
begin  a  commercial mining  operation  that  pays royalties  and                                                               
taxes.   For a recreational  mining area,  the intent is  to give                                                               
Alaskans and other visitors a place  to go gold panning either on                                                               
their own or through a business  that rents out gold pans for the                                                               
day.  The intent is for  the recreationists to have fun and maybe                                                               
get a few flecks of gold in their pans.                                                                                         
                                                                                                                                
1:21:03 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SEATON  drew attention to  the April 9, 2010,  letter to                                                               
Senator  Huggins  in  the  committee  packet  from  Dick  Mylius,                                                               
Director, Division of  Mining, Land and Water.   He observed that                                                               
page  2, paragraph  2,  states that  the area  would  be open  to                                                               
staking and  there would be  no assurance that Ms.  Stevens would                                                               
be able to stake prior to other  people.  He asked whether HB 340                                                               
enacts  what this  letter says  or gets  around that  by ensuring                                                               
that prior claims  continue on through state  ownership and leave                                                               
the rest of the area open for a recreational mining area.                                                                       
                                                                                                                                
MR.  FOGELS  replied that  HB  340  would  remove just  that  one                                                               
portion of  recreational mining area from  the whole recreational                                                               
mining area.   It is  a very  complicated land situation  in that                                                               
area, which is  in part why there is this  problem to begin with.                                                               
The land has  not yet actually been conveyed to  the state; it is                                                               
state selected  land that is  still owned  by the U.S.  Bureau of                                                               
Land Management (BLM).  The  statutes that enact the recreational                                                               
mining area are only valid on  state land.  It hovers above state                                                               
selected land  and will  take effect  as soon  as that  land gets                                                               
conveyed to  the state.   The letter from Director  Mylius points                                                               
out that if  the recreational mining area is  removed there would                                                               
then be no  guarantee that Ms. Stevens would be  the first one to                                                               
stake the claim.  In the  subsequent looking at and picking apart                                                               
of this complex situation, DNR  thinks it may be more complicated                                                               
than that, so the department is  trying to chase that piece down.                                                               
The bottom  line is  that there  is still  no guarantee  that Ms.                                                               
Stevens will be  able to re-stake these claims if  this bill goes                                                               
through.                                                                                                                        
                                                                                                                                
1:23:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON observed  that the  April 9,  2010, letter                                                               
states there are two  areas - a northern area of  300 acres and a                                                               
southern area of  200 acres.  The letter further  states that the                                                               
northern recreational mining  area has not been used  much due to                                                               
[difficult] access, so the presumption  is that the southern area                                                               
has better  access and would  provide the activity.   He inquired                                                               
whether HB 340 would vacate the entire southern area.                                                                           
                                                                                                                                
MR.  FOGELS  confirmed  that  HB  340  would  vacate  the  entire                                                               
southern area of  220 acres; he noted that the  northern area has                                                               
a lot of  potential.  At some point the  department would next do                                                               
a  management plan  for the  entire area  to determine  a way  to                                                               
provide  for a  concessionaire  in the  southern  area and  focus                                                               
recreational  activity  on  the  northern area  rather  than  the                                                               
southern areas.                                                                                                                 
                                                                                                                                
1:24:31 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SEATON asked  why not remove only the  five acres within                                                               
the  southern area  on which  the BLM  is issuing  Ms. Stevens  a                                                               
lease, rather than the entire two hundred acres.                                                                                
                                                                                                                                
MR. FOGELS  believed the mining  claims at issue for  Ms. Stevens                                                               
are more  than five acres.   He deferred  to Mr. Wyn  Menefee for                                                               
further explanation.                                                                                                            
                                                                                                                                
WYN  MENEFEE, Chief  of Operations,  Central Office,  Division of                                                               
Mining, Land  and Water, Department  of Natural  Resources (DNR),                                                               
explained  that  the  original  claims  had  by  Michele  Stevens                                                               
encompassed the entire southern  recreational mining area.  Those                                                               
claims no longer  exist there, so currently there  are no claims.                                                               
The aforementioned five  acres is a portion of the  area that Ms.                                                               
Stevens  is working  out  with the  federal  government to  bring                                                               
under lease  in order  for the  state to  get conveyance  of that                                                               
land because there  are trespass structures that  must be brought                                                               
into compliance before  the state receives the land.   Aside from                                                               
that, currently  there are no  claims that  sit over top  of this                                                               
area  and therefore  there  is  no five-acre  claim  and all  the                                                               
claims have disappeared.                                                                                                        
                                                                                                                                
1:27:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER understood the  reason there are no claims                                                               
[in  this southern  area] is  because Ms.  Stevens gave  up those                                                               
claims in  the understanding  that once the  state had  title she                                                               
would be made whole.                                                                                                            
                                                                                                                                
MR. FOGELS confirmed that that is correct.                                                                                      
                                                                                                                                
REPRESENTATIVE GARDNER maintained  that it is not  quite right to                                                               
say those claims do not exist  because Ms. Stevens has a standing                                                               
agreement that was never met.                                                                                                   
                                                                                                                                
CO-CHAIR FEIGE  replied correct,  but said  the claims  have been                                                               
released.                                                                                                                       
                                                                                                                                
MR. FOGELS  explained that  Ms. Stevens  voluntarily relinquished                                                               
those claims and by law they extinguish and are no longer there.                                                                
                                                                                                                                
1:27:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER  noted that  when Ms.  Stevens voluntarily                                                               
relinquished those claims  there was an agreement  with the state                                                               
that  when the  state  had  title Ms.  Stevens'  claims would  be                                                               
reinstated.   So, she concluded, there  is a moral claim  as well                                                               
as a legal claim.                                                                                                               
                                                                                                                                
CO-CHAIR FEIGE commented that he, too, would be upset.                                                                          
                                                                                                                                
REPRESENTATIVE NEUMAN responded that that  is exactly what HB 340                                                               
is fixing -  the intent of the  bill is to fix  that promise made                                                               
by the  state to  Ms. Stevens.   The state  promised to  make Ms.                                                               
Stevens  whole  after  that  land  was  conveyed  to  the  state,                                                               
valuable land  that the state wanted.   Ms. Stevens agreed  to do                                                               
so even  though she  did not  have to.   In the  complications of                                                               
conveying  that  back to  her,  there  are  about four  lines  in                                                               
statute that need  to be changed, which is what  HB 340 would do,                                                               
and then the department can convey those claims to her.                                                                         
                                                                                                                                
REPRESENTATIVE  GARDNER surmised  there  were original  documents                                                               
signed  by  the  state  regarding  the  state's  promise  to  Ms.                                                               
Stevens.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  NEUMAN answered  he has  seen documentation  that                                                               
would fill this room.                                                                                                           
                                                                                                                                
REPRESENTATIVE KAWASAKI  asked whether  the Department of  Law is                                                               
available for questions.                                                                                                        
                                                                                                                                
CO-CHAIR FEIGE  replied no.   He invited  Ms. Stevens  to provide                                                               
testimony.                                                                                                                      
                                                                                                                                
1:30:07 PM                                                                                                                    
                                                                                                                                
MICHELE STEVENS, a  lifelong Alaskan, explained that  in 1995 she                                                               
gifted  approximately  500 acres  of  area  encompassed by  state                                                               
selected  mining  claims  that  she had  acquired.    These  were                                                               
located  as a  result  of previous  federal  mining claims  being                                                               
declared  null and  void  and  were known  as  the "Peters  Creek                                                               
Jacobsen Mining  Property".  She  agreed to gift portions  of her                                                               
state  selected mining  claim, situated  within the  U.S. Mineral                                                               
Survey 2384, to  the State of Alaska with  the express commitment                                                               
by  the state  that once  the federal  land was  conveyed to  the                                                               
state, approximately 220 acres of  the area known as the southern                                                               
Petersville Recreational Mining  Area would be leased  to her for                                                               
the establishment of a  commercial recreational mining concession                                                               
that would  include a museum  and other amenities to  be provided                                                               
by her.  She owns several  historic buildings and a Marion shovel                                                               
that helped  build the Panama  Canal and the Alaska  Railroad and                                                               
was used  for mining at Petersville  in the 1940s.   She also has                                                               
other structures  that are on  the federal mining  claims located                                                               
within the  220 acres.   She said Representative Neuman  has maps                                                               
of  the  area  that  can  be shared  with  the  committee.    The                                                               
agreement she  had with the State  of Alaska to transfer  or gift                                                               
her  state selected  mineral rights  to the  state was  necessary                                                               
because there  was no  other legal  mechanism for  her to  have a                                                               
recreational mining business on state land.                                                                                     
                                                                                                                                
1:31:56 PM                                                                                                                    
                                                                                                                                
MS. STEVENS  specified that to  ensure the area could  be managed                                                               
in  accordance with  the agreement  with her  and to  ensure that                                                               
other parties could not stake  mining claims in the area, Mineral                                                               
Closing Order 674  was issued on June  2, 1994.  On  May 8, 1997,                                                               
House Bill  46 was signed  into law establishing two  portions of                                                               
recreational  mining area.   The  north Petersville  Recreational                                                               
Mining  Area  is  currently  active  and  the  south  Petersville                                                               
Recreational Mining  Area is not  active.  The two  parcels total                                                               
approximately 500 acres.  It was  the intent of the Department of                                                               
Natural  Resources  that  the  approximately  220  acres  in  the                                                               
southern recreational area would be  leased to her when the state                                                               
received  conveyance from  the  BLM.   Subsequent  to the  claims                                                               
being  gifted  to the  state  and  its  issuance of  the  Mineral                                                               
Closing  Order, the  Department of  Natural Resources  determined                                                               
that  it  could  not,  under  existing  state  law,  establish  a                                                               
noncompetitive  commercial lease  to fulfill  the agreement  with                                                               
her.   However, in  2006, DNR  determined a  legal way  whereby a                                                               
commercial business  could be  operated on a  portion of  a state                                                               
mining claim or  claims by establishing a  miscellaneous land use                                                               
lease,  provided  there was  concurrence  with  the state  mining                                                               
claim holder.  This approach,  however, could not be followed for                                                               
lands designated by statute as a recreational mining area.                                                                      
                                                                                                                                
1:33:49 PM                                                                                                                    
                                                                                                                                
MS.  STEVENS said  HB 340  contains  two provisions.   First,  it                                                               
would reinstate her full mineral  rights to those portions of her                                                               
mining  claim  that  encompass the  southern  recreational  area,                                                               
which  can be  seen on  the  map.   Second, it  would remove  the                                                               
statutory  designation  and allow  DNR  to  fulfill its  original                                                               
agreement with her.   She said the State of  Alaska, DNR, and the                                                               
Alaska Miners Association concur that  this is the best mechanism                                                               
to proceed forward.                                                                                                             
                                                                                                                                
MS.  STEVENS, addressing  the statement  that  the mining  claims                                                               
might not go  back to her, explained that a  mining claim located                                                               
on the outside  of a federal area is called  an at-risk claim, so                                                               
it automatically goes back to the  person who has the area on the                                                               
outsides of  that portion.   Since she  has portions  outside the                                                               
proposed  recreation area  that  are active  mining claims,  that                                                               
gives her at-risk  claims.  She suggested that  Mr. Kerwin Krause                                                               
[of DNR] explain this.                                                                                                          
                                                                                                                                
1:35:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KAWASAKI  asked  whether   Ms.  Stevens  has  the                                                               
"expressed  commitment" in  writing so  that the  committee could                                                               
see it.                                                                                                                         
                                                                                                                                
MS.  STEVENS replied  she  has some  documents  written by  Jules                                                               
Tileston  expressing that  he was  working with  the public,  Ms.                                                               
Stevens, and the Yetna Mining  District to have this recreational                                                               
area  presented.   She  said  the state  has  a  whole folder  of                                                               
documents and  related that  Mr. Tileston  has been  talking with                                                               
people in the department to let them know what the intent was.                                                                  
                                                                                                                                
CO-CHAIR FEIGE drew  attention to the 1/26/12  letter to Governor                                                               
Parnell from  Jules Tileston and  Marty Rutherford, who  were DNR                                                               
officials involved in the transaction at the time.                                                                              
                                                                                                                                
REPRESENTATIVE  KAWASAKI inquired  whether  Ms.  Stevens has  any                                                               
information from 1994 when the "expressed commitment" was made.                                                                 
                                                                                                                                
MS.  STEVENS confirmed  that  some things  were  written down  by                                                               
Jules Tileston, but  said that back then it was  a handshake type                                                               
of  thing   -  in  her   meetings  with  the  DNR   director  and                                                               
commissioner,  everyone   agreed  that  this  would   be  a  good                                                               
situation  for everybody  because  the state  would get  revenue,                                                               
people  would have  a place  to recreate,  and she  could have  a                                                               
concession  with a  museum.   It  was supposed  to  be a  win-win                                                               
situation for everyone.                                                                                                         
                                                                                                                                
1:38:12 PM                                                                                                                    
                                                                                                                                
MS.  STEVENS, in  response to  Representative Gardner,  agreed to                                                               
provide a written copy of her testimony.                                                                                        
                                                                                                                                
REPRESENTATIVE  GARDNER said  that  like Representative  Kawasaki                                                               
she  is looking  for some  kind of  documentation.   She inquired                                                               
whether Ms. Stevens received any  other kind of compensation when                                                               
she signed the quit claim or other document at the time.                                                                        
                                                                                                                                
MS. STEVENS  said she did not  receive any money.   The agreement                                                               
with  the state  was that  she would  have a  concession and  the                                                               
public could  come and the  state would receive revenue  from the                                                               
concession.   It was supposed to  be a win-win situation  for the                                                               
state, her,  and the public  because her buildings  and equipment                                                               
are historic and there  was a need and a desire  by the public to                                                               
have a  place to  recreate since  at the time  it was  illegal to                                                               
have recreational mining  on a mining property,  claim, or lease.                                                               
This was a way to let the public have a place to go.                                                                            
                                                                                                                                
1:40:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARDNER   specified  that   in  the   absence  of                                                               
documentation  from the  time, she  wanted  to make  sure on  the                                                               
record that  there was  not some  other compensation  because, if                                                               
not, she would say that Ms.  Stevens was very generous to give up                                                               
her claims to 500 acres for mining.                                                                                             
                                                                                                                                
MS.  STEVENS  thanked  Representative  Gardner  and  replied  she                                                               
thinks the documentation  is quite clear that  Jules Tileston was                                                               
the  director [of  the Division  of Mining,  Land and  Water] and                                                               
Marty Rutherford  was the [deputy]  commissioner [of DNR]  at the                                                               
time, and those  are the people she was working  with at the time                                                               
to have a bill passed.  She  also wrote letters to Lyda Green and                                                               
Rick  Halford to  have the  bill passed.   She  felt the  biggest                                                               
documentation  is what  the committee  has  in front  of it  now,                                                               
which states that this was the intent.                                                                                          
                                                                                                                                
REPRESENTATIVE  NEUMAN  interjected that  he  has  spoken to  Mr.                                                               
Tileston and others  about the intent and  read the documentation                                                               
presented by  Ms. Stevens.  He  pointed out that the  current DNR                                                               
deputy commissioner has just testified  before the committee that                                                               
that was the intent, and the  letter from the director and deputy                                                               
commissioner  at  the  time  states that  that  was  the  intent.                                                               
Reputable  people are  saying that  this  was the  intent of  the                                                               
state.   There is a  lot of  documentation, he continued,  but he                                                               
was trying not to give the committee  too much paper.  He said HB
340 would simply  make Ms. Stevens whole by  fixing some language                                                               
that would then allow the department to fix the situation.                                                                      
                                                                                                                                
1:42:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KAWASAKI said that because  he was not around when                                                               
House Bill  46 was passed, he  is trying to understand  the issue                                                               
since it is for  a very specific area.  He added  that he is also                                                               
trying  to  ascertain  whether there  could  be  potential  legal                                                               
exposure  from  creating  a  law  that  allows  a  noncompetitive                                                               
commercial lease, as would be done by HB 340.                                                                                   
                                                                                                                                
KERWIN   KRAUSE,  Mineral   Property  Manager,   Central  Office,                                                               
Division  of  Mining,  Land  and  Water,  Department  of  Natural                                                               
Resources  (DNR), stated  that  he thought  Ms.  Stevens had,  or                                                               
would be, providing to the  committee some memorandums from Jules                                                               
Tileston.   Other than  those and  a few emails  in the  file, he                                                               
said he  is unaware of any  letters issued on this  matter by the                                                               
commissioner or  the director.   In response to  Co-Chair Seaton,                                                               
he agreed to provide these documents to the committee.                                                                          
                                                                                                                                
1:45:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER noted  that while the sponsor  has said he                                                               
has  read all  the documentation  presented by  Ms. Stevens,  the                                                               
committee only has a lone letter  written 16 years after the fact                                                               
and  another letter  written  18 years  after the  fact.   It  is                                                               
important  for the  committee to  do due  diligence to  determine                                                               
what the agreement was at the  time.  While she has great respect                                                               
for  Mr. Tileston  and Mr.  Rutherford, it  is important  for the                                                               
committee to look at all documentation that is available.                                                                       
                                                                                                                                
MS. STEVENS  offered to  provide the  committee with  the letters                                                               
she wrote to  Lyda Green and Rick Halford stating  her support of                                                               
House Bill  146 and that the  bill would benefit her  by allowing                                                               
her to have  a concession there.  In response  to Co-Chair Feige,                                                               
she agreed to  fax the letters to the committee.   She added that                                                               
if this  is thought  about logically, she  would not  have gifted                                                               
the mineral  rights back to the  state if the state  had not said                                                               
that it  would let her  have a  concession in return.   Seventeen                                                               
years  ago this  was the  only  way that  a person  could have  a                                                               
concession on mining properties.                                                                                                
                                                                                                                                
1:47:42 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SEATON read from page 2  of the 4/9/10 letter to Senator                                                               
Huggins from Dick  Mylius, which states:  "In  addition, there is                                                               
no assurance that  [Michele] Stevens would be the  first to stake                                                               
claims for the law is in  favor of whoever stakes the claim first                                                               
after  the land  becomes open.   It  is likely  that a  number of                                                               
claimants would end  [up] with conflicting claims.   It is likely                                                               
that the Department of Fish and  Game may have concerns about any                                                               
large-scale  mining on  the active  portion of  the Creek."   Co-                                                               
Chair  Seaton inquired  whether the  current bill  gets past  the                                                               
problems pointed out by Mr. Mylius.                                                                                             
                                                                                                                                
MR. FOGELS replied  that HB 340, as currently  written, only gets                                                               
partly  there.   It  would  remove  the legislatively  designated                                                               
area.   The Department  of Natural Resources  would then  have to                                                               
lift the Mineral Closing Order to  make that land available to be                                                               
staked.   What complicates the  matter is  that that land  is not                                                               
yet state  land, it  is state  selected.   The BLM  must actually                                                               
convey that land to the State  of Alaska.  Thus, three key things                                                               
have to happen  before that land can  be staked and have  it be a                                                               
valid  staked claim.   As  mentioned by  Ms. Stevens,  an at-risk                                                               
claim is where a claimant stakes  a state claim on state selected                                                               
land.  It is not yet a real  claim and will never be a real claim                                                               
unless the federal  government actually conveys that  land to the                                                               
state.  If the federal government  never conveys that land to the                                                               
state, then it  will never be a  valid claim, which is  why it is                                                               
called an at-risk  claim.  Ms. Stevens has at-risk  claims on top                                                               
of federal land  that is state selected that  has a legislatively                                                               
designated area  on top of it  and a state Mineral  Closing Order                                                               
on it,  so it is very  complicated.  The department  is trying to                                                               
get  some clarity  from the  Department  of Law,  but if  Michele                                                               
Stevens does indeed  have valid at-risk claims  staked, then once                                                               
all this unravels  and the state finally gets the  land, then Ms.                                                               
Stevens is  likely to have her  claims whole.  He  said he cannot                                                               
at  this  point,  from the  department's  perspective,  tell  the                                                               
committee 100 percent that that is exactly what will happen.                                                                    
                                                                                                                                
1:51:12 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SEATON, noting that HB  340 would write a statute, asked                                                               
whether there is  any other way to recognize  the holdover claims                                                               
from the federal government so as  to avoid a time period of open                                                               
staking.                                                                                                                        
                                                                                                                                
MR. FOGELS  responded the  department has  discussed that,  and a                                                               
number of  other things could be  done in this legislation.   For                                                               
example, the legislature could lift  the Mineral Closing Order so                                                               
the department  does not  have to  do that  later down  the road.                                                               
However, he did  not know whether the  legislature could actually                                                               
reinstate those claims in HB 340.                                                                                               
                                                                                                                                
1:52:28 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SEATON  said he does  not want  to hold up  this process                                                               
given that  it is a process,  but said it seems  this process has                                                               
the potential  for further entanglements.   Honoring  the state's                                                               
previous agreement needs  to be done in the  most expeditious way                                                               
that does not  open these claims to conflict.   He requested that                                                               
the sponsor and  DNR work with the Department of  Law to find out                                                               
whether HB 340 can do that  and not result in years of litigation                                                               
for an Alaska citizen who acted in  good faith.  While he did not                                                               
want to hold up the process,  he said that perhaps the Department                                                               
of Law  could suggest a  way to honor  this commitment in  a much                                                               
clearer  way  than going  through  an  open staking  process  and                                                               
relying on at-risk claims to give priority.                                                                                     
                                                                                                                                
REPRESENTATIVE NEUMAN said  that that is the  intent, but certain                                                               
steps must  occur first, as stated  by Mr. Fogels, and  HB 340 is                                                               
the  first step  in working  through this  process.   Ms. Stevens                                                               
acted in  good faith  and did not  have to do  this in  the first                                                               
place; she  wanted to help  the State  of Alaska get  these lands                                                               
conveyed to  it.   Many people  are working  to make  Ms. Stevens                                                               
whole and this is the simplest way.                                                                                             
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
1:56:49 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SEATON stated  that the committee is trying  to find the                                                               
most expedited  way to accomplish  this process  without creating                                                               
further  legal entanglements  for Ms.  Stevens.   He  said he  is                                                               
hearing from DNR  that there may be some other  things that could                                                               
be added  by the legislature that  the department cannot do.   He                                                               
understood that  DNR would be  conferring with the  Department of                                                               
Law between now  and the next committee of  referral to determine                                                               
whether  there are  amendments that  would accomplish  the intent                                                               
without putting Ms. Stevens' claims at risk.                                                                                    
                                                                                                                                
MR.  FOGELS confirmed  that  Co-Chair  Seaton's understanding  is                                                               
correct.                                                                                                                        
                                                                                                                                
CO-CHAIR SEATON  said he is fine  with moving the bill  today but                                                               
thinks there  could be a better  and clearer way to  resolve this                                                               
in Ms. Stevens favor.                                                                                                           
                                                                                                                                
REPRESENTATIVE  KAWASAKI said  he thinks  there are  legal issues                                                               
with HB 340 and he  therefore feels uncomfortable moving the bill                                                               
with  recommendations  because there  is  no  other committee  of                                                               
referral.    The  next  time   members  will  see  this  bill  is                                                               
potentially on the House floor.                                                                                                 
                                                                                                                                
1:58:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER stated  that the bill is  not quite ready,                                                               
given that it has no other  committee of referral.  In principle,                                                               
she absolutely  agrees with the bill  - the right thing  to do is                                                               
to make this  person whole.  However, it is  also the right thing                                                               
for the committee to ensure that  it is doing things properly and                                                               
with due diligence.   This needs to be done  correctly so it will                                                               
not come back and bite the state.                                                                                               
                                                                                                                                
CO-CHAIR  FEIGE noted  that the  bill's  next stop  is the  House                                                               
Rules Standing  Committee.  While HB  340 is one way  forward, he                                                               
concurred that there  may be other methods the  Department of Law                                                               
can recommend  for righting the wrong  dealt to Ms. Stevens.   He                                                               
requested  that  if  the  bill is  reported  from  committee  the                                                               
chairman of the  House Rules Standing Committee  be provided with                                                               
an opinion  from the Department  of Law  as to any  other options                                                               
that  might be  available to  the state  or Ms.  Stevens.   It is                                                               
unfortunate  the  Department  of  Law was  unavailable  for  this                                                               
meeting, he said,  but he would like  to see HB 340  moved out of                                                               
committee in the spirit of righting this wrong.                                                                                 
                                                                                                                                
2:01:21 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SEATON moved  to report  HB 340  out of  committee with                                                               
individual  recommendations  and  the  accompanying  zero  fiscal                                                               
notes.                                                                                                                          
                                                                                                                                
REPRESENTATIVE GARDNER  objected, saying that while  she supports                                                               
the bill  in principle, she  thinks it  is "half baked"  and will                                                               
create a fiasco down the road.                                                                                                  
                                                                                                                                
REPRESENTATIVE  DICK inquired  whether  the  sponsor can  provide                                                               
assurance that HB 340 will do the right thing for Ms. Stevens.                                                                  
                                                                                                                                
REPRESENTATIVE NEUMAN replied that there  have been many hours of                                                               
discussion  to get  to this  point to  make sure  that the  right                                                               
thing is being done, and he will continue to do that.                                                                           
                                                                                                                                
REPRESENTATIVE GARDNER maintained her objection.                                                                                
                                                                                                                                
MS. STEVENS suggested that reinstating  the active mineral rights                                                               
that  existed  prior  to  the  [land  transfer  agreement]  would                                                               
probably clear up the problem.                                                                                                  
                                                                                                                                
2:03:27 PM                                                                                                                    
                                                                                                                                
A  roll  call  vote  was taken.    Representatives  Dick,  Munoz,                                                               
Foster, Feige,  and Seaton  voted in favor  of reporting  HB 340.                                                               
Representatives   Gardner   and   Kawasaki  voted   against   it.                                                               
Therefore,  HB  340  was  reported out  of  the  House  Resources                                                               
Standing Committee by a vote of 5-2.                                                                                            
                                                                                                                                
The committee took an at-ease from 2:04 p.m. to 2:07 p.m.                                                                       
                                                                                                                                
^CONFIRMATION HEARINGS(S):                                                                                                      
^Big Game Commercial Services Board                                                                                             
^Fishermen's Fund Advisory & Appeals Council                                                                                    
                   CONFIRMATION HEARINGS(S):                                                                                
               Big Game Commercial Services Board                                                                           
          Fishermen's Fund Advisory & Appeals Council                                                                       
                                                                                                                                
2:07:23 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FEIGE  announced that the  next order of  business would                                                               
be [a continuation of the  2/22/12] confirmation hearings for the                                                               
Big Game Commercial Services Board  and Fishermen's Fund Advisory                                                               
& Appeals Council.   [Confirmation hearings were  held on 2/22/12                                                               
for Michele  Metz and  Brenda Rebne, appointees  to the  Big Game                                                               
Commercial  Services  Board,  and  for  Clay  Bezenek  and  James                                                               
Herbert, appointees  to the Fishermen's  Fund Advisory  & Appeals                                                               
Council, but their names were not forwarded from committee.]                                                                    
                                                                                                                                
CO-CHAIR FEIGE requested  Mr. Don Quarberg, appointee  to the Big                                                               
Game Commercial Services Board, to state  why he would like to be                                                               
on the board.                                                                                                                   
                                                                                                                                
2:07:59 PM                                                                                                                    
                                                                                                                                
DON  QUARBERG, Appointee,  Big  Game  Commercial Services  Board,                                                               
Delta Junction, Alaska, said that to  be honest, two years ago he                                                               
did  not.   He has  lived in  Delta Junction  since 1978  and has                                                               
served on the  fish and game advisory committee for  a long time,                                                               
including being the chairman for the  last four years.  He worked                                                               
with the  Alaska Department of Fish  & Game (ADF&G) on  the Delta                                                               
Junction State Bison  Range and was in the room  in 1979 when the                                                               
bill was  written to establish the  range.  About two  years ago,                                                               
the Department of  Natural Resources (DNR) started  its review of                                                               
the Guide  Concession Program and  his advisory  committee, which                                                               
has a  couple of assistant  guides, was given the  opportunity to                                                               
comment  on the  program.   He asked  those guides  to meet  with                                                               
local guides  to discuss suggestions  for improving  the program.                                                               
Not knowing much about the  guiding industry, he thought it might                                                               
behoove himself  to attend that  work session to satisfy  some of                                                               
his own  interests and,  as a result,  he learned  a considerable                                                               
amount  about  the  guiding  industry.     He  then  traveled  to                                                               
Anchorage to  attend the Alaska Professional  Hunters Association                                                               
(APHA)  meeting,  where  he  was  favorably  impressed  with  the                                                               
association's  code  of  ethics  and challenges  to  improve  the                                                               
service and quality of the guiding industry.                                                                                    
                                                                                                                                
2:10:24 PM                                                                                                                    
                                                                                                                                
MR.  QUARBERG related  that  following the  APHA  meeting he  was                                                               
asked to  attend a  meeting of the  Big Game  Commercial Services                                                               
Board in Fairbanks, at which he met  with a few of the guides and                                                               
DNR employees to discuss the  Guide Concession Program.  He later                                                               
received a call from members  of the Big Game Commercial Services                                                               
Board asking  whether he  would be interested  in serving  on the                                                               
board as a public representative.   He said he told them the only                                                               
way he would be interested in serving  on the board was if it was                                                               
felt he had  some talent that would improve the  committee.  When                                                               
they  encouraged  him  to  apply,  he  sent  his  resume  to  the                                                               
governor's office,  after which he  received an appointment.   To                                                               
date he has  participated in two audio conferences  of the board,                                                               
so  other board  members could  be  contacted to  see whether  he                                                               
contributed positively.   If he can  help he would like  to help,                                                               
he  does not  want  to hinder  anything.   However,  he does  not                                                               
intend to  lie down and let  the guide industry do  what it wants                                                               
to do.  He would like to find  a way to improve the situation and                                                               
yet improve the interests of the public, which is him.                                                                          
                                                                                                                                
2:12:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER  requested Mr. Quarberg to  talk about his                                                               
service with the Delta Bison Working Group.                                                                                     
                                                                                                                                
MR.  QUARBERG replied  that the  group  started in  1979 and  the                                                               
range was developed  in 1984.  He explained that  the Delta Bison                                                               
Working Group  is somewhat  of an advisory  capacity to  ADF&G on                                                               
how to  manage the  bison range.   The  group has  basically been                                                               
trying  to manipulate  the bison  herd,  in such  way that  still                                                               
meets the  intent of the  law, to postpone the  bison's migration                                                               
over into  the private  land.   A multitude  of things  have been                                                               
done, but bison  are migratory by nature and he  thinks they just                                                               
walk to  have something to  do because  the bison can  have food,                                                               
shelter, and water right in front  of them and yet they will walk                                                               
off and  leave it.   It has  been a real  struggle and  there has                                                               
been a lot of controversy and it is quite an obstacle.                                                                          
                                                                                                                                
2:14:15 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  FEIGE asked  what  Mr.  Quarberg sees  as  some of  the                                                               
challenges  with implementing  the  Guide  Concession Program  or                                                               
even getting that program through to the public.                                                                                
                                                                                                                                
MR. QUARBERG responded  that a major hurdle in  the whole program                                                               
is drawing  lines on the  map that will provide  guide concession                                                               
areas  with  sufficient  resource  to enable  guides  to  make  a                                                               
living.  There is a tendency to  be all things to all people, and                                                               
he fears that just cannot happen.   There is much competition now                                                               
because  guides can  "shoot out  and run  out".    An  evaluative                                                               
process is  trying to be used  to select the best  guides for the                                                               
areas that  they want to  be in.  The  downside to that  might be                                                               
that ADF&G has to conduct a  population estimate in every area to                                                               
determine the harvestable  surplus, which he hopes  does not have                                                               
to be  done.  When he  first arrived in Alaska  in the mid-1970s,                                                               
there were exclusive guide areas  and the guiding industry seemed                                                               
to  work pretty  well.   But  someone filed  suit,  it was  ruled                                                               
unconstitutional, and then it became  a heyday.  The standards on                                                               
the guide exam were lowered  and the number of guides skyrocketed                                                               
to  1,800;  with  that  much competition  there  will  always  be                                                               
problems.                                                                                                                       
                                                                                                                                
2:16:32 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FEIGE,  in regard to  implementing the  Guide Concession                                                               
Program, asked what Mr. Quarberg  believes paramount - the status                                                               
of the game populations or the economic health of the guides.                                                                   
                                                                                                                                
MR.  QUARBERG answered  he does  not think  one can  be separated                                                               
from the other.   If he were god for a day  he would review these                                                               
guides and would appoint the  better guides into the industry and                                                               
leave  out those  with  an  unethical track  record.   The  guide                                                               
industry provides a service.   Some resident hunters try to limit                                                               
the nonresidents.   However, Alaska  is 60 percent  federal land,                                                               
which means nonresident hunters own just  as much of Alaska as he                                                               
does.    In  2010,  nonresident hunters  represented  just  12-13                                                               
percent  of  the hunters,  yet  through  licenses and  tags  they                                                               
contributed over  70 percent of  the funding  for ADF&G.   So, if                                                               
the nonresidents  are eliminated, the resident  hunters will have                                                               
to step  up to the  plate financially to  have the same  level of                                                               
game management that the state has now.                                                                                         
                                                                                                                                
2:18:35 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FEIGE, after ascertaining that  no one wished to testify                                                               
regarding  Mr.  Quarberg's  qualifications,  requested  that  Mr.                                                               
Michael  Meekin, appointee  to the  Big Game  Commercial Services                                                               
Board, state why he would like to be on the board.                                                                              
                                                                                                                                
MICHAEL MEEKIN,  Appointee, Big  Game Commercial  Services Board,                                                               
stated he was born and raised in  Alaska and has been a guide and                                                               
actively  involved in  the industry  since becoming  an assistant                                                               
guide at age 16.  He has an  opinion or two on some of the issues                                                               
coming up and at age 59 would like  to give back to what has been                                                               
good to him for quite a few years.                                                                                              
                                                                                                                                
CO-CHAIR FEIGE asked where Mr. Meekin has guided.                                                                               
                                                                                                                                
MR. MEEKIN replied  he also has a transporter's  license and runs                                                               
Meekin's Air Taxi  Service out of the Sheep  Mountain area, which                                                               
generally  deals mainly  with Unit  13, although  he operates  in                                                               
Units  14  and  16  as  well.   So,  basically,  he  operates  in                                                               
Southcentral Alaska.                                                                                                            
                                                                                                                                
2:20:25 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FEIGE requested Mr. Meekin  to state his thoughts on the                                                               
proposed  Guide Concession  Program  and  the biggest  challenges                                                               
that the state faces on that program.                                                                                           
                                                                                                                                
MR. MEEKIN said he has heard  a little bit about the program, but                                                               
not the  whole program  and how  it would  be initiated.   Having                                                               
been  actively  involved in  guiding  when  there were  exclusive                                                               
guiding  areas, he  thought a  problem could  be that  the people                                                               
with the most amount of money  will get the concessions, which he                                                               
maintained has happened  with the federal concessions.   He would                                                               
like to see that there is a  place for the little people, such as                                                               
a guide without a lot of  clients that may live in remote Alaska;                                                               
he would  like to see  that lifestyle preserved.   However, since                                                               
he has  not seen how  that program  is being developed,  he could                                                               
not say for sure.                                                                                                               
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
CO-CHAIR FEIGE ascertained that no  one from the public wished to                                                               
testify regarding the appointment of Mr. Quarberg or Mr. Meekin.                                                                
                                                                                                                                
2:24:02 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  FEIGE  turned to  discussion  of  the Fishermen's  Fund                                                               
Advisory  & Appeals  Council and  asked whether  anyone from  the                                                               
public wished  to testify [regarding appointees  Clay Bezenek and                                                               
James Herbert, whose confirmation  hearings were held on 2/22/12,                                                               
but whose  names were  not forwarded  from committee].   Co-Chair                                                               
Feige closed  public testimony after  ascertaining no  one wished                                                               
to testify.                                                                                                                     
                                                                                                                                
CO-CHAIR SEATON moved  to forward the names of  appointees to the                                                               
Big Game  Commercial Services Board [Michele  Metz, Brenda Rebne,                                                               
Don  Quarberg,   and  Michael  Meekin]  and   appointees  to  the                                                               
Fishermen's  Fund Advisory  & Appeals  Council [Clay  Bezenek and                                                               
James Herbert] to  the joint session of the House  and Senate for                                                               
consideration.  There being  no objection,  the confirmations  of                                                               
Michele Metz,  Brenda Rebne, Don  Quarberg, Michael  Meekin, Clay                                                               
Bezenek,  and   James  Herbert  were  advanced   from  the  House                                                               
Resources  Standing  Committee.     Co-Chair  Seaton  noted  that                                                               
advancing a confirmation does not  reflect a member's vote during                                                               
the joint floor session; it is  only moving the nomination to the                                                               
joint floor session for a confirmation vote.                                                                                    
                                                                                                                                
^Board of Game                                                                                                                  
                         Board of Game                                                                                      
                                                                                                                              
2:25:39 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  FEIGE  announced  the  [continuation  of  the  2/22/12]                                                               
confirmation  hearing for  [Lynn  Keogh, Jr.],  appointee to  the                                                               
Board of Game.  He opened public testimony.                                                                                     
                                                                                                                                
2:26:00 PM                                                                                                                    
                                                                                                                                
TINA BROWN  said that  in addition to  her written  testimony she                                                               
would like  to stress  a bottom line  - Alaskans  trust committee                                                               
members,  their elected  officials  and  representatives, to  put                                                               
responsible and honorable  people in positions of  power, such as                                                               
on the  Board of  Game.   The public needs  and wants  people who                                                               
respect  the  laws and  who  can  be  trusted  to make  the  best                                                               
decisions for everyone.   She maintained that  Mr. Keogh's record                                                               
shows  he is  not  such  a person  and  urged  that members  vote                                                               
against his confirmation.                                                                                                       
                                                                                                                                
CO-CHAIR FEIGE closed public testimony.                                                                                         
                                                                                                                                
2:27:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DICK  commented  that  he has  lived  in  western                                                               
Alaska for  45 years.  While  he takes seriously the  e-mails and                                                               
letters that  legislators receive,  only one of  these is  from a                                                               
person  who  actually  lives  in  an area  that  is  impacted  by                                                               
predator control, which  is an issue that has been  brought up in                                                               
regard to  Mr. Keogh.  He  related his frustration from  the past                                                               
about  people making  decisions  regarding  the conditions  under                                                               
which rural  people live when  the people making  these decisions                                                               
are unaware  of the  consequences of their  decisions and  do not                                                               
live  with those  consequences.   While understanding  how people                                                               
who  oppose predator  control would  ideologically disagree  with                                                               
Mr. Keogh,  he said Mr. Keogh  is aware of the  reality of people                                                               
living  in rural  areas that  need predator  control.   He stated                                                               
that his area  desperately needs predator control  to protect the                                                               
moose population  and he therefore  thinks people like  Mr. Keogh                                                               
are  needed for  at  least  10 more  years  to  recover from  the                                                               
devastation that took place in the past.                                                                                        
                                                                                                                                
CO-CHAIR FEIGE re-opened public testimony.                                                                                      
                                                                                                                                
2:30:23 PM                                                                                                                    
                                                                                                                                
JOE  LETARTE,  President,   Alaska  Trappers  Association  (ATA),                                                               
endorsed the  appointment of Mr.  Keogh to  the Board of  Game on                                                               
behalf  of his  1,000-member  organization.   He  said Mr.  Keogh                                                               
represents the  values, the knowledge,  and the expertise  to sit                                                               
on the board and he therefore urges that Mr. Keogh be confirmed.                                                                
                                                                                                                                
REPRESENTATIVE DICK asked  how many of the members  of the Alaska                                                               
Trappers Association live in the  woods where predator control is                                                               
an issue.                                                                                                                       
                                                                                                                                
MR. LETARTE  replied that  ATA has a  vast membership  in Bethel,                                                               
Nome, and the Brooks Range.   The majority of ATA's membership is                                                               
based  closer  to   urban  areas,  but  it   has  many  full-time                                                               
professional trappers,  such as Mr.  Keogh, who have  spent their                                                               
lives  in the  woods and  depend  on the  resources being  talked                                                               
about for a livelihood.                                                                                                         
                                                                                                                                
2:31:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KAWASAKI related that  he has questioned why there                                                               
are  not more  candidates for  the Board  of Game.   He  inquired                                                               
whether Mr. Letarte believes that  there are not enough qualified                                                               
candidates for this board and, if so, why that is.                                                                              
                                                                                                                                
MR.  LETARTE said  he  thinks  there are  quite  a few  qualified                                                               
people, such as Mr.  Keogh.  He added that Mr.  Keogh is about as                                                               
qualified as they come due to his past experience.                                                                              
                                                                                                                                
REPRESENTATIVE  KAWASAKI, saying  he  would not  argue about  Mr.                                                               
Keogh's  qualifications right  now, observed  that Mr.  Keogh has                                                               
six years  on the Anchorage Fish  & Game Advisory Committee.   He                                                               
then related  the education and  experience of the  appointees to                                                               
the other boards and said he  finds it hard to believe that there                                                               
are not enough qualified candidates [for the Board of Game].                                                                    
                                                                                                                                
2:33:43 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SEATON recalled  his  [2/22/12] question  to Mr.  Keogh                                                               
about the  low bull-to-cow ratio  that is  a problem in  the area                                                               
near  the co-chair's  home.   He  posited that  things are  being                                                               
looked at  wrongly when  predator control  is used  for resolving                                                               
the problem  of not enough bulls  for the number of  cows, rather                                                               
than predator  control because the  moose population is  too low.                                                               
He  further recalled  that when  asked about  habitat issues  for                                                               
this same area,  Mr. Keogh answered that  he disregarded comments                                                               
about  this issue  because the  people making  the comments  were                                                               
against  predator control.   Co-Chair  Seaton said  he took  some                                                               
offense to that because he was  one of the people who had written                                                               
a letter  to the board.   He related that  he owns five  acres on                                                               
which there  is no  willow browse  left due  to the  explosion of                                                               
snowshoe hares over the last  several years; yet predator control                                                               
is occurring in this area  of severe habitat competition.  People                                                               
in the  Homer area have lost  their fruit trees due  to the hares                                                               
and he  has personally shot over  100 hares on his  lawn from his                                                               
bedroom  window.   Addressing Representative  Dick, he  said that                                                               
the comments  of the people  living in his area  were disregarded                                                               
by Mr. Keogh,  which is not the  balance he wants to  have on the                                                               
board.   While not saying how  he will vote on  the candidate, he                                                               
said  he  was  not  happy  with the  candidate's  answer  to  his                                                               
question about this issue.                                                                                                      
                                                                                                                                
2:36:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DICK recounted  a past  meeting in  McGrath where                                                               
people were  expressing their concerns.   One of the  people from                                                               
the refuge  was rocking  back and  forth saying  "browse, browse,                                                               
browse".   In this person's mind,  it did not matter  what people                                                               
at  the meeting  were saying  because inadequate  browse was  the                                                               
mantra.  He  maintained that this is like the  boy who cried wolf                                                               
- the  browse conversation  has been  going on  for 20  years, so                                                               
when  it finally  is  the issue,  a [board  member]  is far  less                                                               
likely to  listen because the  conversation has been  ongoing for                                                               
so long.   People  were being  told that  the reason  their moose                                                               
were  dying off  was because  there was  not enough  browse, even                                                               
though  a person  could  not get  through the  woods  due to  the                                                               
amount of the browse.                                                                                                           
                                                                                                                                
2:38:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KAWASAKI  said he has  not met Mr. Keogh  and does                                                               
not know what Mr. Keogh's votes  have been as a board member, but                                                               
that does not matter so much  for deciding whether Mr. Keogh is a                                                               
qualified  applicant for  this board.   The  committee knows  the                                                               
evidence  about  whether this  appointee  would  be an  objective                                                               
thinker on the  board and whether he would  take public testimony                                                               
into account.   This appointee has a number  of troubling tickets                                                               
and violations, and when asked  about them, the appointee did not                                                               
seem to take  appropriate responsibility for his  actions and did                                                               
not seem accountable  to those issues.  When asked  whether he or                                                               
a  member  of  his  family   could  be  affected  financially  by                                                               
decisions made by  the board to which he was  applying, Mr. Keogh                                                               
responded  no.   When asked  why he  responded no  when he  has a                                                               
guiding business, Mr. Keogh seemed to  think it was not an issue.                                                               
This is troubling, Representative  Kawasaki continued, given that                                                               
the  appointees to  the Big  Game Commercial  Services Board  who                                                               
have an interest, such as a  guiding license, have said yes about                                                               
having  a  conflict of  interest.    A  conflict of  interest  is                                                               
obvious in  Mr. Keogh's case, too,  he asserted, and he  wants to                                                               
have someone on  the Board of Game who will  reflect the state as                                                               
a whole and  be objective in opinion and rulings.   He added that                                                               
he has trouble supporting Mr. Keogh's qualifications.                                                                           
                                                                                                                                
2:41:15 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SEATON  suggested that Mr.  Keogh be allowed  to respond                                                               
to the committee members' comments.                                                                                             
                                                                                                                                
CO-CHAIR FEIGE asked whether Mr. Keogh would like to respond.                                                                   
                                                                                                                                
LYNN KEOGH,  JR., Appointee, Board  of Game,  said he did  a poor                                                               
job  on  2/22/12  explaining  his position  on  the  habitat  and                                                               
snowshoe  hare  issue.   He  offered  his understanding  that  as                                                               
snowshoe  hares start  to  repopulate to  excess,  the browse  on                                                               
which they feed  defends itself by creating a  toxin that becomes                                                               
bitter to the hares.   So, it is the toxic  browse that kills the                                                               
hares  in  the   end,  not  the  hares  that   kill  the  browse.                                                               
Therefore, he  did not  consider snowshoe  hares browsing  on the                                                               
willows  a concern  because the  toxic browse  keeps itself  from                                                               
being over-browsed.   Regarding  his violations,  he said  he has                                                               
not looked at the written  court record because living through it                                                               
was enough.  He pointed out that  because he is a junior, some of                                                               
the court  record information may not  be his.  He  asserted that                                                               
he did take responsibility for  the violations because he did not                                                               
fight them and he  paid his fines.  His integrity  means a lot to                                                               
him,  he continued,  and  he  does not  want  anyone thinking  he                                                               
intentionally does things against the law.                                                                                      
                                                                                                                                
2:44:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MUNOZ  inquired  whether  any  of  the  judgments                                                               
against Mr. Keogh were based on misdemeanors or crimes greater.                                                                 
                                                                                                                                
MR. KEOGH replied  no and noted that a background  check was done                                                               
on him  two years ago when  he put in  for a contract to  do bear                                                               
guarding and  it showed no  violations on his record.   Regarding                                                               
the conflict of  interest, he explained that at  the beginning of                                                               
every  Board of  Game meeting  board  members must  do an  ethics                                                               
disclosure.   Since different  proposals are  dealt with  at each                                                               
meeting,  members must  give  their opinion  as  to whether  they                                                               
think they  have a conflict of  interest on any of  the proposals                                                               
and the chair  deems whether there is indeed a  conflict.  If so,                                                               
the  member  abstains  from  the   discussion  and  vote  on  the                                                               
particular proposal.                                                                                                            
                                                                                                                                
2:45:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER observed  from the list of  court cases in                                                               
the committee  packet that  on June  17, 1995,  there was  a case                                                               
labeled "violate  comm guide S";  she asked whether that  was Mr.                                                               
Keogh  or his  father and  what  it meant.   She  added that  the                                                               
reference is  "11AAC18.030(c) violate  comm guide S  violation or                                                               
infraction  noncriminal"  and  said  it  was  assigned  to  Judge                                                               
Christensen (ph).                                                                                                               
                                                                                                                                
MR.  KEOGH believed  that violation  was his  and said  it was  a                                                               
parking citation  related to commercial  guide stipulations.   He                                                               
said  he never  received the  citation, but  two years  after the                                                               
fact he  and his  father were  coming home  from their  trap line                                                               
when  a trooper  pulled up  and did  a name  check.   Evidently a                                                               
ticket had  been issued that  he never received and  the citation                                                               
stated that he was not present.   When he contested the ticket in                                                               
the Kenai courts  the judge threw it out.   He explained that his                                                               
commercial operator permit  allows him to do  certain things, and                                                               
things  that have  been allowed  for  years by  [the Division  of                                                               
Parks & Outdoor Recreation] can  suddenly be changed to not being                                                               
allowed,  such as  what parking  lot a  guide can  park in.   The                                                               
perpetual  changes  can  be  confusing;  for  example,  a  permit                                                               
allowing for  the launching of a  boat at a particular  launch is                                                               
changed such  that the boat  cannot be launched without  paying a                                                               
fee.  While  not an excuse, he  is just saying that  this is part                                                               
of  living and  working with  [the  Division of  Parks &  Outdoor                                                               
Recreation] on the Kenai Peninsula.                                                                                             
                                                                                                                                
2:47:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER  inquired about  a 2004  violation labeled                                                               
"comm fish permit stip" which was a no contest.                                                                                 
                                                                                                                                
MR. KEOGH replied it was  fishing stipulations and he believes it                                                               
was the motor violation, although he is not 100 percent sure.                                                                   
                                                                                                                                
REPRESENTATIVE GARDNER  noted there  were two violations  on that                                                               
same day  in 2004,  one the  outboard motor  and the  other "comm                                                               
fish permit".                                                                                                                   
                                                                                                                                
MR. KEOGH  responded that it is  a double whammy on  that type of                                                               
thing because  the motor  violation is  also a  guide stipulation                                                               
violation,  which means  the  guide  is hit  twice  for the  same                                                               
thing.                                                                                                                          
                                                                                                                                
2:49:02 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FEIGE noted the committee has  had a lot of input on Mr.                                                               
Keogh's nomination and  that Mr. Keogh has attended  two Board of                                                               
Game meetings.                                                                                                                  
                                                                                                                                
MR. KEOGH  answered he is in  his third Board of  Game meeting as                                                               
he speaks.                                                                                                                      
                                                                                                                                
CO-CHAIR FEIGE  observed that many  of the comments on  Mr. Keogh                                                               
pointed  to a  list of  court records,  of which  several of  the                                                               
violations were his  father's.  Further, a  respectable number of                                                               
the  tickets were  for speeding.   Other  than some  fairly minor                                                               
parking or boat access tickets,  he understood that Mr. Keogh has                                                               
not been cited for any violation of the big game regulations.                                                                   
                                                                                                                                
MR.  KEOGH confirmed  he does  not  have any  fishing or  hunting                                                               
violations and said he has a background check to verify that.                                                                   
                                                                                                                                
2:50:28 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FEIGE added  that the complaints against  Mr. Keogh seem                                                               
to center  mostly on his opinion  on the use of  predator control                                                               
in managing  game populations.   He related  that he has  spent a                                                               
lot  of  time  flying  over Representative  Dick's  backyard  and                                                               
during the late  1990s and into the  2000s he saw quite  a bit of                                                               
problems  with predator  populations  taking  down the  resources                                                               
that the  people of Alaska depend  on.  In his  own backyard over                                                               
the last  10 years there was  an issue of excessive  wolf numbers                                                               
in the Nelchina  Basin.  A land and shoot  program for wolves has                                                               
now  been ongoing  for four  years and  each year  the number  of                                                               
wolves taken under that program  has decreased.  A constituent of                                                               
his participating in the hunt told  him that last year the number                                                               
of  wolves  shot  did  not  meet the  quota  set  by  the  Alaska                                                               
Department of Fish & Game.   The caribou numbers have now started                                                               
to increase  in the Nelchina  Basin, which  is a Tier  II hunting                                                               
area frequented  my many Anchorage, Matanuska-Susitna,  and local                                                               
residents.  He maintained that  predator control has its benefits                                                               
and is a useful tool for  the overall health of game populations.                                                               
He said he  does not find anything beyond Mr.  Keogh's opinion on                                                               
predator control  that would, in  his view, disqualify  Mr. Keogh                                                               
for the Board of Game.                                                                                                          
                                                                                                                                
CO-CHAIR  SEATON clarified  that his  comments were  not directed                                                               
towards Representative Dick's area; each  member knows his or her                                                               
own backyards and that is what his comment was referring to.                                                                    
                                                                                                                                
2:53:17 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SEATON  moved to  forward the name  of Lynn  Keogh, Jr.,                                                               
appointee  to the  Board of  Game, to  the joint  session of  the                                                               
House  and Senate  for consideration.  There being  no objection,                                                               
the confirmation of Lynn Keogh,  Jr., was advanced from the House                                                               
Resources  Standing  Committee.     Co-Chair  Seaton  noted  that                                                               
advancing a confirmation does not  reflect a member's vote during                                                               
the joint floor session; it is  only moving the nomination to the                                                               
joint floor session for a confirmation vote.                                                                                    
                                                                                                                                
The committee took an at-ease from 2:53 p.m. to 2:55 p.m.                                                                       
                                                                                                                                
2:55:44 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Resources Standing Committee meeting was adjourned at 2:55 p.m.                                                                 

Document Name Date/Time Subjects
Big Game Commercial Svcs - Meekin #1.pdf HRES 3/2/2012 1:00:00 PM
Big Game Commercial Svcs - Quarberg #1.pdf HRES 3/2/2012 1:00:00 PM
HB 340 A.pdf HRES 3/2/2012 1:00:00 PM
HB 340
HB 340 Sponsor Statement vers A.pdf HRES 3/2/2012 1:00:00 PM
HB 340
HB340 Fiscal Note.pdf HRES 3/2/2012 1:00:00 PM
HB 340
HB 340 Map.PDF HRES 3/2/2012 1:00:00 PM
HB 340
HB340 Tileston - Rutherford Letter 1.26 (1).pdf HRES 3/2/2012 1:00:00 PM
HB 340
HB340 DNR Letter to Sen. Huggins 4.9.10.pdf HRES 3/2/2012 1:00:00 PM
HB 340