Legislature(2013 - 2014)BARNES 124
01/24/2014 01:00 PM House RESOURCES
| Audio | Topic |
|---|---|
| Start | |
| Overview(s) - Department of Natural Resources | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
HOUSE RESOURCES STANDING COMMITTEE
January 24, 2014
1:03 p.m.
MEMBERS PRESENT
Representative Eric Feige, Co-Chair
Representative Dan Saddler, Co-Chair
Representative Peggy Wilson, Vice Chair
Representative Kurt Olson
Representative Paul Seaton
Representative Scott Kawasaki
Representative Geran Tarr
MEMBERS ABSENT
Representative Mike Hawker
Representative Craig Johnson
COMMITTEE CALENDAR
OVERVIEW(S) - DEPARTMENT OF NATURAL RESOURCES
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
JOE BALASH, Commissioner
Department of Natural Resources (DNR)
Anchorage, Alaska
POSITION STATEMENT: Presented an overview of DNR.
FRANCI HAVEMEISTER, Director
Division of Agriculture
Department of Natural Resources (DNR)
Palmer, Alaska
POSITION STATEMENT: Presented the portion of DNR's overview
relating to the Division of Agriculture.
JOHN "CHRIS" MAISCH, Director
Division of Forestry
Department of Natural Resources (DNR)
Fairbanks, Alaska
POSITION STATEMENT: Presented the portion of DNR's overview
relating to the Division of Forestry.
STEVE MASTERMAN, Acting Director
Division of Geological & Geophysical Surveys
Department of Natural Resources
Fairbanks, Alaska
POSITION STATEMENT: Presented the portion of DNR's overview
relating to the Division of Geological & Geophysical Surveys.
MARCIE MENEFEE, Executive Director
Alaska Mental Health Trust Land Office
Office of the Commissioner
Department of Natural Resources
Anchorage, Alaska
POSITION STATEMENT: Presented the portion of DNR's overview
relating to the Alaska Mental Health Trust Land Office.
BRENT GOODRUM, Director
Central Office
Division of Mining, Land and Water
Department of Natural Resources (DNR)
Anchorage, Alaska
POSITION STATEMENT: Presented the portion of DNR's overview
relating to the Division of Mining, Land and Water.
BILL BARRON, Director
Central Office
Division of Oil & Gas
Department of Natural Resources
Anchorage, Alaska
POSITION STATEMENT: Presented the portion of DNR's overview
relating to the Division of Oil & Gas.
BEN ELLIS, Director
Central Office
Division of Parks & Outdoor Recreation
Department of Natural Resources
Anchorage, Alaska
POSITION STATEMENT: Presented the portion of DNR's overview
relating to the Division of Parks & Outdoor Recreation.
TOM CRAFFORD, Director
Office of Project Management & Permitting (OPMP)
Department of Natural Resources
Anchorage, Alaska
POSITION STATEMENT: Presented the portion of DNR's overview
relating to the Office of Project Management & Permitting.
ALLISON IVERSEN, Acting State Pipeline Coordinator
State Pipeline Coordinator
Office of the Commissioner
Department of Natural Resources
Anchorage, Alaska
POSITION STATEMENT: Presented the portion of DNR's overview
relating to the State Pipeline Coordinator.
JEAN DAVIS, Director
Central Office
Division of Support Services
Department of Natural Resources
Juneau, Alaska
POSITION STATEMENT: Presented the portion of DNR's overview
relating to the Division of Support Services.
ACTION NARRATIVE
1:03:53 PM
CO-CHAIR DAN SADDLER called the House Resources Standing
Committee meeting to order at 1:03 p.m. Representatives Seaton,
Olson, P. Wilson, Kawasaki, Feige, and Saddler were present at
the call to order. Representative Tarr arrived as the meeting
was in progress.
^OVERVIEW(S) - Department of Natural Resources
OVERVIEW(S) - Department of Natural Resources
1:04:24 PM
CO-CHAIR SADDLER announced that the only order of business is an
overview presentation by the Department of Natural Resources.
1:05:13 PM
JOE BALASH, Commissioner, Department of Natural Resources (DNR),
presented a PowerPoint overview regarding the roles and
responsibilities of DNR. He said DNR is the primary land
manager for Alaska, overseeing more than 100 million acres of
uplands, and an additional estimated 60 million [acres] of
submerged land comprising rivers, lakes, and tidelands.
COMMISSIONER BALASH said many directors are responsible for
carrying out the functions of the department. He reviewed the
recent shifts in positions that took place upon the resignation
of the former commissioner, Dan Sullivan, and stated that each
of the directors would come before the committee to relate their
accomplishments over the last year using the resources provided
and the authorities given. He indicated that there could be
opportunity for the department to return with more information
as the legislature wishes it.
1:07:52 PM
COMMISSIONER BALASH noted that Eric Hatleberg, acting director
of the Gas Pipeline Project Office (GPPO), is unable to be
present today. In Mr. Hatleberg's stead, he reported that the
department continues to have monthly meetings with its Alaska
Gasline Inducement Act (AGIA) licensee and its partners on the
Alaska Pipeline Project [slide 3]. He reminded members that
that office and function would be transitioned later in 2014.
Over the course of 2013, GPPO maintained regular oversight of
project development plans, which is "a precursor and an element
that feeds into the reimbursement process under that particular
statute." The [GPPO] engaged in a number of other activities,
including hosting a presence at Liquefied Natural Gas (LNG)-17,
a triennial meeting that occurs globally and took place in
Houston, Texas, back in April. Further, GPPO contributed to an
analysis done by Black & Veatch on a royalty study, which took
place over the summer and fall of 2013. The office also met
with various LNG buyers and signed a memorandum of understanding
(MOU) with Resources Exploration, Inc. (REI) - one of the
parties interested in collecting a number of buyers in Japan in
a consortium.
1:10:41 PM
FRANCI HAVEMEISTER, Director, Division of Agriculture,
Department of Natural Resources (DNR), paraphrased the
division's mission statement, which read as follows:
The mission of the Division of Agriculture is to
promote and encourage development of an agriculture
industry in the State.
MS. HAVEMEISTER said one of the ways the division carries out
its mission is through its Inspection Section [slides 4-5]. In
2012 and 2013, the division conducted surveys on diseases and
pests of concern to agriculture. Natural resources and
international trade surveys were conducted for Lepidoptera
pests, which are large insects, including moths and butterflies,
potentially affecting the timber industry, as well as studying
nematodes and thrips. The absence or presence of a pest
determines whether treatment is necessary prior to exporting a
product such as peonies or timber.
1:11:28 PM
MS. HAVEMEISTER related that inspections were conducted at the
U.S./Canada border, in cooperation with Customs Border Patrol,
in an effort to evaluate pest pathways in products of concern.
Seed potatoes and tomato plants were detained at the border
because they lacked the required certification to enter the
state. The division performed timber and agriculture export
certification on over $143 million of timber in fiscal year 2013
(FY 13); the timber was bound for the export market to [South]
Korea, China, and Japan. She said the peony industry continues
to expand; shipments were sent to Taiwan in 2013.
MS. HAVEMEISTER stated that Land Section staff continues to
identify land with soil suitable for agricultural production.
Staff, working cooperatively with the Division of Mining, Land
and Water, increased agricultural land designations by 35,000
acres in the Yukon, Canada, area plan. Discussions have
continued with farmers and stakeholders regarding the
agricultural land program. Six meetings were held in 2013
addressing topics such as clearing requirements, future sales,
and agriculture covenants.
1:12:20 PM
MS. HAVEMEISTER relayed that the Plant Materials Center (PMC) -
a 407-acre production farm - produces foundation seed for grain
and native grass growers, produces G0 seed potatoes for
certified seed producers, and houses the only certified seed lab
and seed cleaning facility within the state. Variety trials
were conducted on onions and asparagus and are currently being
conducted on apple root stock and potatoes. The division is
currently working with the Alaska Department of Fish & Game
(ADF&G) and the Department of Environmental Conservation (DEC)
on efforts to control the spread of Elodea. The division held
public meetings in Anchorage and Homer to discuss treatment
options and worked with both departments to establish guidelines
on permitting requirements for treatment.
MS. HAVEMEISTER stated that Marketing [Services] continues to
find ways to market the Alaska Grown Program. There are 75 new
farm business members - an increase of 13 percent from 2012.
The Alaska Grown Facebook page remains content driven, continues
to be an effective tool for outreach and education, and has over
15,000 "likes" and much traffic daily. In 2013, the division's
Restaurant Reward Program had 21 participating restaurants,
which increased use of Alaska Grown by 44 percent from the
previous year. The markets able to accept the Supplemental
Nutritional Assistance Program (SNAP) doubled from five to ten
in 2013, bringing approximately an additional $30,000 to
Alaska's farm markets, which are located in Sitka, Bethel,
Southcentral, Fairbanks, and "on the Kenai."
1:13:53 PM
MS. HAVEMEISTER announced that the division's Farm to School
Program was selected to receive the Alaska Community Service
Award for Health at the Alaska Health Summit Awards Luncheon on
January 29, 2014, in recognition of an organization that is
making a significant contribution to improving the health of
Alaskans. The division hosted on-farm food safety workshops.
Fifty producers attended; seventy six percent of attendees
indicated they would make changes to their farm practices as a
result. She said 25 of 51 school food service directors
completed the division's Farm-to-School survey; 100 percent of
participants agreed that there had been an increase in local
foods served in schools as a direct result of the Farm to School
Program. The Farm to School projects have been successful
throughout the state and recognized nationally, with 80 percent
of Alaska's school districts (47 out of 54 districts) actively
engaged in the program.
MS. HAVEMEISTER quoted Stacey Sobell, Western Regional Lead for
the National Farm to School Network, as follows:
Alaska is recognized as a national leader in Farm to
School, producing models that have been shared with
and emulated by other states across the country.
1:15:02 PM
MS. HAVEMEISTER said the Alaska Food Resource Working Group was
formed through Administrative Order 265. Signed into law by
Governor Sean Parnell in June 2013, it was the result of HCR 1.
The objective of the order is to improve the health of state
residents, increase food security, strengthen local economies,
and encourage community development. The group has met twice,
with the latest meeting held early in January 2014, at the Plant
Materials Center in Palmer, and it included invited testimony
from vegetable producers from the valley. She concluded, "This
group will provide recommendations for policy changes that will
increase the use of locally grown and harvested food, which will
ultimately provide additional markets for Alaska producers."
1:15:45 PM
JOHN "CHRIS" MAISCH, Director, Division of Forestry, Department
of Natural Resources (DNR), said he would highlight the
division's key accomplishments in its Wildland Fire and Forest
Management programs [slides 6-7]. He said the mission statement
of the division underlines its focus on serving Alaskans through
forest management and wildland fire protection.
MR. MAISCH directed attention to the photo of wood pellets on
slide 6 that are being produced at a facility in North Pole. He
said wood pellets are used both for residential and commercial
heating purposes in Interior Alaska. The facility has begun
manufacturing compressed firewood, which is dried and can be
used in wood stoves, and which will help greatly with the air
quality in Fairbanks. The pellets are made from Alaska forest
wood and the bags have "Made in Alaska" written on them.
1:17:01 PM
MR. MAISCH stated that the division, in response to the
Governor's Alaska Timber Job Task Force recommendations, has
established a "Roads Office" in which two logging engineers work
on statewide access development projects. This office is
promoting the proposed Susitna State Forest legislation
comprising HB 79 and SB 28 and is using a $2 million capital
improvement project (CIP) to develop infrastructure to access
Southeast Alaska state forest parcels at Gravina Island and Edna
Bay. The office has offered a 25-year-long timber sale in the
Interior for 35,000 green tons of biomass per year to support
the Combined Heat and Power (CHP) project proposed by Alaska
Power and Telephone, with biomass currently available as an
over-the-counter (OTC) sale. The office has sold over 16
million board feet of timber to 37 Alaska businesses across the
state and provided direct and indirect support to 105 woody
biomass projects shown on an AEA map. The office is continuing
to work with the U.S. Forest Service to implement the 2008
Tongass Land Management Plan (TLMP) to support the timber
industry in Southeast Alaska.
1:18:53 PM
MR. MAISCH directed attention to slide 7 which lists key
accomplishments of the division in 2013. He said most notable
is the division's successful and safe response to the fourth
largest fire season over the past ten years, involving 1.3
million acres and 613 fires. The 2013 season was also the
second largest fire season out of the past five years. The
division's other achievements include: continuing to build and
deploy the Integrated Fire Management software tool to improve
initial attack and overall fire management; completing
procurement of an Aero Turbo Commander, with a second purchase
closing this month, and both planes being used in a lead plane
role with retardant ships and providing overall air coordination
between helicopters, jump ships, and retardant ships; and
completing the training of 20 crewbosses, which are needed to
lead each 19-person emergency fire fighter (EFF) Type II Crew.
He noted that the photo depicts two crewbosses who had just
completed their training. He further noted that the aircraft
shown in the background of slide 7 is a "water scooper."
1:21:20 PM
MR. MAISCH added that the division has partnered with the
University of Alaska Fairbanks (UAF) to deliver the Wildland
Fire Academy; offered 14 internships for past academy graduates
to integrate them into the program and build "a recruitment
pipeline"; received five competitive Wildland Urban Interface
(WUI) funding grants for a total of over $1 million in hazard
fuel mitigation projects in the Matanuska-Susitna Valley,
Fairbanks, Kenai, and Tok; and developed a project and concept
paper in collaboration with the Cold Climate Housing Research
Center (CCHRC) in Fairbanks for a new wildland fire center in
the Interior. He stated that CCHRC is a leading entity in
regard to energy efficiency in residential construction, and the
division is trying to emulate that for commercial construction.
1:22:49 PM
STEVE MASTERMAN, Acting Director, Division of Geological &
Geophysical Surveys, Department of Natural Resources, stated
that his division's mission is to determine the potential of
Alaska land for production of minerals, fuels, geothermal
resources, the locations and supplies of groundwater and
construction, and the potential geologic hazards to buildings,
roads, bridges, and other infrastructure in communities [slides
8-9]. The Minerals Section of the division is tasked with
determining the potential of Alaska lands to host mineral
occurrences. In 2013, a key accomplishment of this section was
completing the mapping and sampling of a 2,600-square-mile area
between Paxson and Talkeetna for platinum group elements. This
was part of the Strategic and Critical Minerals Program and the
results will be released shortly. Under this program the
division has collected, sampled, and analyzed about 10,000 rock
samples and stream sediment samples; the results are published
and made available as they are received. Another achievement
for this section was the either the acquisition or publishing of
over 4,500 square miles of airborne geophysical data. The
section also mapped 212 square miles in the Styx River region,
which has some copper and gold deposits.
1:24:57 PM
MR. MASTERMAN said the Energy Section is responsible for
determining the potential of state lands for energy resources.
In 2013 this section mapped a 250 square mile area on the west
side of Cook Inlet, looking at the deeper Mesozoic rocks which
are the source rocks for the petroleum systems in upper Cook
Inlet. That information will be published and the industry is
keenly interested in that. As part of that work two new oil-
stained exposures were discovered in west Cook Inlet, which has
generated a lot of interest. On the North Slope the Energy
Section is collaborating with the University of Alaska,
Fairbanks (UAF) and the U.S. Geological Survey (USGS) looking at
oil shale occurrences and the potential to host tight oil. This
section also completed a compilation of geothermal data from
around the state, which will be published shortly in both online
and hardcopy formats.
1:26:24 PM
MR. MASTERMAN explained that the Geological Materials Center,
currently located in Eagle River, houses the state's collection
of oil and gas and mineral samples from bore holes and surface
exposures. The center is in the process of being relocated to a
newly purchased building on Penland Parkway in Anchorage.
Construction will be completed this summer and relocation of the
collection is expected in late summer with a grand opening
expected in September 2014. The mineral and oil and gas
industries are looking forward to the expanded access this new
building will provide.
1:27:05 PM
MR. MASTERMAN discussed the Engineering Geology Section, noting
that this section works on geological hazards, groundwater
issues, and construction materials. [In 2013] a hydrogeology
program was initiated with the main focus to assess groundwater
systems and resources in areas of development, primarily oil and
gas fields and primarily the North Slope where an understanding
of the groundwater system is going to be critical going forward.
This section also worked with several other organizations on
engineering and geology studies, including the Yukon River
Bridge, various gas pipeline corridors, and on the Susitna-
Watana Dam. Another component of the Engineering Geology
Section is tsunami inundation mapping, which was completed and
published in 2013 for the communities of Valdez and Sitka.
Lastly, this section worked in western Alaska on coastal
hazards, primarily on erosion and flooding issues.
1:28:28 PM
MR. MASTERMAN specified that the Volcanology Section is part of
the Alaska Volcano Observatory in conjunction with the
University of Alaska and the USGS. [The Observatory's] primary
role is to monitor and issue alerts when there are volcanic
eruptions. The Volcanology Section continued its work on some
recently active volcanoes and will do so again this coming year.
1:29:06 PM
MR. MASTERMAN stated that the Geological Communications Section
is the glue that holds all the aforementioned together and makes
it all happen. This section handles the division's computer
network systems and website, as well as publishes all of the
division's reports. A key 2013 accomplishment for this section
was launching a completely new dataset where the data is live on
the division's web site. People can view and interact with the
data and select what they want to download. Online access to
data is becoming more common and is a cheaper method for getting
information to the public. The demand for paper reports and
maps is decreasing as the availability of information increases
online. The Geological Communications Section published 52 new
geologic maps and reports and had over 6 million web page hits.
Additionally, the division has a Facebook presence and a Twitter
feed, so information is being disseminated in many ways.
1:30:36 PM
MARCIE MENEFEE, Executive Director, Alaska Mental Health Trust
Land Office, Office of the Commissioner, Department of Natural
Resources, stated that the mission of her office is to manage
the one million acres of Alaska Mental Health Trust Lands in
Alaska for both its beneficiaries and the Trust itself [slide
10]. She noted that this was less than 1 percent of the state
lands. The goal is to create revenue streams from the natural
resources on this land. The Trust office conducted two small
timber sales in Southeast Alaska which generated over $1 million
in revenue. She said that a proposed timber land exchange with
the Tongass National Forest, with possible completion in the
next two years would give the Trust a sustainable timber
portfolio for perpetual harvest. She directed attention to the
land sales program, noting it is a hallmark of success, having
contributed more than $20 million in revenue. Additionally,
coal and hard rock mining contributed over $5 million of revenue
in 2013 with 350,000 acres of Trust land under exploration
license or leased for production. The goal in 2014 is to
increase this to 450,000 acres, with almost half of the land
being for coal or hard rock mineral production. She reported
that the new oil and gas program resulted in the record annual
revenue of $3.2 million in Cook Inlet. The commercial real
estate program, in its second year of implementation, brought in
just over $0.8 million and is projected to soon create revenue
income of about $4 million. She stated that over the last 19
years the Trust Land Office has generated about $158 million in
revenue and is working to advance and improve this through new
and existing initiatives.
1:36:04 PM
MS. MENEFEE, responding to Co-Chair Saddler, said beneficiaries
of the Trust include people with developed disabilities,
including Alzheimer's and other dementias, as well as people
with brain injuries and alcohol and substance abuse issues.
1:36:55 PM
BRENT GOODRUM, Director, Central Office, Division of Mining,
Land and Water, Department of Natural Resources (DNR), said the
division is heavily engaged in a comprehensive, multi-faceted
approach to eliminate the permit backlog and to prevent any
further recurrence [slide 11]. Since Fiscal Year 2012, the
backlog has been reduced by 53.5 percent, about 1,421
authorizations. Last year the division issued [794]
authorizations; additionally, the Mining Section issued 724
Applications for Permits to Mine in Alaska (APMA).
MR. GOODRUM said a critical component of improving permitting
efficiency is modernizing the process through the Unified Permit
Project. During the last year the land use permits have been
issued through automation and in the next month the water rights
element will also be automated. Statewide projects that his
division has been involved in include: the Port McKenzie rail
extension, Roads to Resources projects, North Slope oil and gas
exploration, the City and Borough of Juneau (CBJ) cruise ship
dock decision, and the Alaska Industrial Development and Export
Authority's (AIDEA) liquefied natural gas (LNG) trucking.
1:39:16 PM
MR. GOODRUM noted that his division inspected the network of
more than 377 miles of ice and road on the North Slope. The
2005 Bristol Bay area plan was successfully amended last year,
with significant public participation and input. Classification
for wildlife habitat in that area plan was increased by more
than 2.6 million acres and public recreation area was increased
by more than 1.1 million acres. Close work with the U. S. Coast
Guard and Department of Environmental Conservation (DEC) over
the last year resulted in the successful removal of submerged
vessels that had concerned local mariculture farms. He declared
that stewardship is important to the division. Lastly, the
division and the Bureau of Land Management (BLM) have entered
into a cooperative agreement to help resolve long-standing
Native allotment issues.
1:40:57 PM
BILL BARRON, Director, Central Office, Division of Oil & Gas,
Department of Natural Resources, stated that his division is
responsible for leasing and land management associated with oil,
gas, and geothermal activities on state land [slides 12-13].
Ninety leases were awarded in the recent North Slope sale, he
noted, and all were issued within seven weeks of the sale. He
compared this to a former time frame of eight to twelve months,
declaring that the leasing section had increased its efficiency.
The Resource Evaluation Section is working with the U.S.
Geological Survey (USGS) and the U. S. Department of Energy in
researching methane hydrates on the North Slope. This research
is a first, not only for the state but also for the nation.
1:42:59 PM
MR. BARRON reported that the Commercial Section reviewed the
financial ability of both large and small companies to cover the
requirements of dismantlement, removal, and restoration of
onshore and offshore facilities in Cook Inlet, and determined
bonding and other financial means to secure the funds required.
Lastly, he noted, the Petroleum Systems Integrity Office (PSIO)
collaborated with the State Pipeline Coordinator's Office on an
issue with debris in the Alyeska pipeline.
1:44:40 PM
BEN ELLIS, Director, Central Office, Division of Parks & Outdoor
Recreation, Department of Natural Resources, cited a semi-annual
report recently sent to all legislators on the status of parks
and recreation, primarily within each legislator's area. The
report outlines work to be done in each area, including deferred
maintenance and capital improvement projects. He expressed
appreciation for legislators disseminating this information to
constituents. He said there are 82 permanent staff, 23 non-
permanent staff, and 800 volunteers in outdoor recreation
management, watching over 3 million acres in the state parks.
Wood-Tikchik State Park with 1.6 million acres and Chugach State
Park with .5 million acres are the two largest parks, plus an
additional 124 park units, 900 miles of developed trail, and 71
campgrounds. He noted that the division collaborates with the
Alaska Department of Fish & Game and other state agencies for
support. Administrative costs for the trails office are
primarily supported with federal funding, but some of that
funding is ending. The trails office acted as a clearing office
for $1.6 million of federal money, although half of the money
was allocated to local communities for local programs. Also
administered through the trails office is the Snow Track
Program, which is funded from snowmachine registration fees of
about $220,000-$250,000 annually.
1:49:25 PM
MR. ELLIS reported that this January 1 was the third consecutive
year that State Parks has participated in a nationwide first day
hike, bike, or cross country ski program. Additionally, during
the summer there is a trails day program. He said the Office of
History & Archaeology employs 12 archaeologists and 7 historians
and reviews about 260,000 projects annually. The office
primarily works in coordination with transportation and resource
development agencies to ensure that the state's history and
archaeology is protected, while allowing for projects to
continue. Mr. Ellis pointed out that the Design & Construction
Section is unique in that only 2 of the 16 staff are paid
through general funds and the others are paid through the
project agencies. He praised the Office of Boating Safety as
one of the most outstanding nationwide programs, saying it has
"saved a number of children's lives."
1:52:19 PM
MR. ELLIS announced that, for the first time in 30 years, a new
campground project had been started - the South Denali Visitor
Center Complex. This $47 million project is the largest project
the Division of Parks & Outdoor Recreation has been involved
with. He lauded the Alaska State Legislature for its efforts to
appropriate almost $22 million and noted that this project
includes a 2.3 mile access road into the campground, which,
depending on weather, will be completed in either August 2014 or
in the summer of 2015. He reflected that the visitor's center
could become a significant profit center for State Parks.
1:55:39 PM
TOM CRAFFORD, Director, Office of Project Management &
Permitting (OPMP), Department of Natural Resources, explained
that the Office of Project Management & Permitting (OPMP)
facilitates the coordination of permitting between project
applicants and state agencies; the office does not have any
regulatory authority. He pointed out that OPMP also helps with
tracking and state response to federal initiatives for project
plans. Funding is usually through reimbursable agreements and
Memorandums of Understanding (MOU) with the project applicants.
Accomplishments of OPMP in 2013 include MOUs with Buccaneer
Energy Ltd. for projects in the Cook Inlet area and offshore,
and with Conoco Phillips for its Greater Moose's Tooth project.
In regard to mining, OPMP also signed MOUs with Graphite One
Resources and with Free Gold Ventures Ltd.
1:58:53 PM
MR. CRAFFORD discussed OPMP's work with Apache Corporation on
its Cook Inlet seismic program, which includes acreage in the
Kenai National Wildlife Refuge. He said it is a complex process
to negotiate the permitting maze for authorization in the
refuge. He noted that OPMP was very involved with coordination
of state and federal agencies in the proposed Izembek National
Wildlife Refuge land exchange. While this exchange was denied,
he said there will be future discussions. He referenced OPMP's
work to coordinate the state review of the Environmental
Protection Agency (EPA) assessment document for Bristol Bay with
state agencies. Moving on to the Red Dog Mine, he said this was
the first year that this mine has had a regularly required
environmental audit, as the mine had begun operations prior to
current authorizations and regulations. In regard to the Pogo
Mine, OPMP was involved with the permitting of its latest
project, and the expansion of its dry stack tailings disposal
facility. The Greens Creek Mine has undergone the Environmental
Impact Statement (EIS) permitting process for expansion of its
dry stack tailings disposal facility, although the permits have
not yet been issued by the state agencies. He said OPMP will
also be involved with state agency coordination of the EIS
process for the Donlin Gold LLC mine on the Kuskokwim River.
2:02:35 PM
ALLISON IVERSEN, Acting State Pipeline Coordinator, State
Pipeline Coordinator, Office of the Commissioner, Department of
Natural Resources, explained that the State Pipeline
Coordinator's office issues leases for state land for pipeline
rights of way and guides the state policies in AS 38.35
concerning the development, use, and control of pipeline
transportation systems within the state. She said recent
accomplishments include facilitation of the Badami Pipeline
System transfer of interest from BP (Transportation) Alaska to
Nutaaq Pipeline, LLC, a conglomerate of Savant and ASRC
Exploration. The office has released its 2013 annual report, a
compilation of activities from DNR and other state agencies
within the State Pipeline Coordinator's office. She said it is
critical to review compliance and the other permitting efforts
associated with pipelines.
MS. IVERSEN stated that her office facilitated the Oliktok
change-of-service from natural gas liquids to natural gas. She
reported that work is ongoing for a preliminary decision on
Trans-Foreland Pipeline Company's amended application for a 28-
mile-long pipeline under Cook Inlet. The office also worked on
several applications and projects on the North Slope, including
facilitating an LNG trucking operation to bring gas to
Fairbanks, issuing a lease to Spectrum LNG for an eight-inch
pipeline, and completing the commissioner's analysis and
proposed decision for the Polar LNG project.
2:04:48 PM
MS. IVERSEN said her office regularly issued Trans-Alaska
Pipeline System (TAPS) amendments to complete system upgrades,
improvements, and necessary maintenance activities. The office
continued to coordinate state permitting and right of way
efforts for the Alaska Stand Alone Pipeline (ASAP) and for the
Alaska LNG pipeline project. The office issued permits and
coordinated multiple permits with other agencies, including the
Alaska Department of Fish & Game, Department of Transportation &
Public Facilities, and the Office of History & Archaeology.
Directing attention to the Point Thomson project, she said her
office will be in the field monitoring completion of the export
pipeline project.
2:07:04 PM
JEAN DAVIS, Director, Central Office, Division of Support
Services, Department of Natural Resources, explained that her
division is the administrative support arm for about 1,000 DNR
employees in 32 statewide locations [slide 19]. These services
include information technology (IT) infrastructure for managing
land records, desktop support, network and servers, mapping, and
business process automation. Services also include accounting
and financial support for paying invoices and recording DNR's
revenue, about $2.6 billion in 2013, and accounting of the
federal grants that come into the department. She noted that
her division assists all of the divisions in preparing the
budgets, working through the appropriation process, and
implementing and monitoring the budgets. The division provides
procurement and facility support for purchases of goods and
services, as well as contract analysis for complex economic
development.
2:09:05 PM
MS. DAVIS added that the Division of Support Services also
supports all of DNR's recruitment, hiring, and management
through the Human Resources Section. Lastly, she pointed out
that the division houses the State Recorder's Office, which
provides the permanent record for mortgages, deeds, and liens on
real property. She listed the division's key accomplishments:
implementation of electronic recording (eRecording) throughout
the state, allowing DNR customers to file documents
electronically; programming support for the Unified Permit
Automation Project; and participated in the Department of
Administration's Integrated Resource Information System Project
(IRIS), which will replace the state's payroll, accounting,
procurement, and human resources programs.
2:12:58 PM
CO-CHAIR FEIGE, addressing Commissioner Balash, requested more
detail about the MOU between the Gas Pipeline Project Office
(GPPO) and Resources Energy, Inc. (REI) to focus effort on the
Cook Inlet LNG export project.
COMMISSIONER BALASH responded that REI had initially expressed
interest in participation with the commercialization of North
Slope gas as LNG. The initial MOU signed with REI, by GPPO's
previous director, was to coordinate, provide information, and
help REI better understand the opportunities with regard to
North Slope gas. During fourth quarter 2013, it became clear
that the timeline that REI was seeking to achieve would not
match with the Alaska LNG project. Instead of the North Slope,
REI and GPPO turned their focus toward opportunities in Cook
Inlet, which has a smaller configuration and output of LNG.
2:15:37 PM
REPRESENTATIVE SEATON, addressing Ms. Havemeister, noted that in
its audit of the Agricultural Revolving Loan Fund, the Division
of Legislative Audit suggested that the expertise of the
Department of Commerce, Community & Economic Development (DCCED)
would be more in line with the granting of successful loans than
the Division of Agriculture. He inquired whether the Division
of Agriculture supports or opposes this suggestion.
MS. HAVEMEISTER replied that, although the division has stated
on the record that it does not agree with everything in the
audit, there is some good information in the audit which the
division is looking to incorporate. She added that it is good
to review procedures and processes. She expressed support for
the Board of Agriculture & Conservation's administration of the
program.
2:17:09 PM
REPRESENTATIVE SEATON said the audit looked at the history of
the loans granted and the financial expertise for approval of
loans, which, he opined, was much more in line with DCCED. He
requested clarification on whether DNR supports that the loan
program be directed by people familiar with agriculture, but not
as familiar with the granting of institutional loans. He
further asked how this deficiency identified by the audit would
be addressed.
MS. HAVEMEISTER offered her belief that the audit addressed a
need to review current regulations. She pointed out that the
staff loan officer and the Board of Agriculture & Conservation
followed the regulations for approval of loans. She said the
DNR response letter, although it cited room for improvement,
declared support for the loan program. She understood that HB
207, introduced by Co-Chair Feige, would move the final loan
approval to DCCED while the management and loan functions of the
ARLF would remain with the Board of Agriculture & Conservation.
2:19:15 PM
REPRESENTATIVE OLSON inquired whether the Division of
Agriculture has taken a position on HB 231, which addresses
cattle brands.
MS. HAVEMEISTER responded that the division has authority over
brands and administers the brand program. She offered her
belief that the authority is contained in both the Department of
Revenue and the Division of Agriculture.
2:19:55 PM
REPRESENTATIVE TARR offered her support for the Farm-to-School
Program and requested a comparison of the program's proposed
budget for this year to that of last year. She understood that
last year it was unclear whether there would be funding to
continue this program.
MS. HAVEMEISTER replied that there is funding in the governor's
budget this year to continue the Farm-to-School Program. Last
year, due to a fiscal error that was overlooked, the program is
in statute for four years but only had a fiscal note for three.
Thus, last year was just a one-year fiscal note to meet the
sunset date. She believed the budget increment to continue the
program into the baseline budget is for $181,000.
2:20:56 PM
CO-CHAIR FEIGE recalled that in last year's legislative session
funds were re-appropriated from the university to the Plant
Materials Center for improvements in the seed potato program.
He inquired how that funding was spent.
MS. HAVEMEISTER answered that the aforementioned budget request
was just completed by the division for the department's
approval. The plan is to use part of the money for disease
testing on potato products at the Plant Materials Center;
conduct a potato symposium at which experts from the Lower 48
will address disease issues as well as certification; partner
with the University of Alaska to do variety tests and disease
testing at the university's Trunk Road facility; and train
another inspector in potato disease inspections because the
current inspector will be retiring in late spring 2014.
2:22:14 PM
REPRESENTATIVE TARR requested an update on the ongoing dairy
issues in the Matanuska-Susitna Valley so as to help committee
members reflect about better management of the Alaska Revolving
Loan Fund (ARLF).
MS. HAVEMEISTER replied that in 2007 an ARLF asset, Matanuska
Maid, the only processing facility within the state of Alaska,
was closed by the Board of Agriculture. At that time, another
dairy received about $600,000 in federal funds to continue the
program, and this dairy came to the ARLF requesting additional
funds to create its own creamery to process local milk. The
board made very difficult decisions with the direction from
then-Governor Palin to assist the dairy industry, approving
loans to assist the [new] dairy. That dairy closed about a year
ago and the board called the approximately $800,000 in loans, so
there was a loss to the ARLF. Assets were sold, but there is
not a big demand for creamery equipment within this state. The
ARLF had a loss that year of approximately $500,000 but
continues to revolve. Typically, the ARLF has an annual gain of
about $400,000-$500,000 with interest.
2:24:04 PM
CO-CHAIR SADDLER offered his thanks to Ms. Havemeister for the
legislative tour of the Plant Materials Center last summer.
2:24:20 PM
REPRESENTATIVE SEATON, addressing Mr. Maisch, reported that a
number of old forestry roads on the "Kenai watershed" have
culverts that no longer allow fish passage. The borough is
trying to clean some of those up, but the old forestry roads
that were transferred to Native corporations are no longer being
assessed as to their condition. He inquired whether the
Division of Forestry is looking at old forestry roads and the
culverts blocking fish passage.
MR. MAISCH replied that the aforementioned conversation started
at the Board of Forestry meeting held on the Kenai about a year
ago. He said roads that initially met forestry standards but
were then converted to other uses do not fall under the state's
Forest Practices Act and therefore such roads are not directly
under the purview of the Division of Forestry to continue
monitoring. The division does have a road condition survey that
is looking at old forest roads, especially roads in place prior
to the Forest Practices Act. These "legacy" culverts are color
coded based on whether anadromous fish can or cannot pass
through, with red indicating a culvert that cannot pass
anadromous fish. The division is working its way through state-
owned road systems that have red pipes, replacing them as funds
are available. The Department of Transportation & Public
Facilities (DOT&PF) is doing the same thing. The legacy road
systems are more of an issue, especially if they are on private
lands, because they were not required to meet those standards at
the time they were built. In these cases it is more of a carrot
approach than a regulatory approach.
2:26:37 PM
REPRESENTATIVE SEATON asked whether anyone else in DNR has
responsibility for looking at the aforementioned. He said most
are in the Matanuska-Susitna Valley, which has lots of problems
with habitat issues and anadromous fish.
MR. MAISCH responded that it depends on who is the land manager
or land owner of that road system. Boroughs acquired some of
those road systems during borough selections. Responsibility
then would lie with the borough to be in compliance with any
fish passage requirements, which are actually administered via
the Alaska Department of Fish & Game (ADF&G). Other than the
Division of Forestry, DNR itself does not manage roads. The
Division of Forestry is the only division that has that
authority and responsibility under the Forest Practices for
private and municipal and state lands if it is a forestry
operation. Otherwise, it goes to who the land owner is and who
actually owns the road for management purposes. The rest of the
public road system falls with the Department of Transportation &
Public Facilities (DOT&PF), which works with ADF&G to coordinate
responses for culverts that do not pass fish. To his knowledge,
conversation on this topic is frequent because it benefits no
one to have culverts in place that do not pass fish.
2:28:21 PM
CO-CHAIR FEIGE commended the Division of Forestry for its work
developing state forest resources for in-state use. He offered
his understanding that the Alaska Fire Service (AFS) is
basically the U.S. Bureau of Land Management (BLM), and it is
BLM that hires the air tankers the state uses for fighting fire.
He observed that the aircraft on slide 7 is a CL-215 water
scooper and inquired whether the division has looked at
acquiring a smaller water scooping aircraft to improve the
state's ability to respond quickly and negate the need for
sending a ground crew. He presumed that during low fire years
the state could shop this smaller aircraft around the western
states and generate revenue through inter-agency agreements.
2:30:57 PM
MR. MAISCH answered that when those assets are needed the
division acquires them from other states through being a member
of the Northwest Compact. The compact includes primarily the
northern tier states, the western states, and several Canadian
provinces. This year was very busy; the division had eight
aircraft at one time, mostly CL-415s, which were ordered through
the Northwest Compact. These assets can be brought on and used
when needed and then released when not needed, which is the most
cost effective way. There have been no issues with getting the
aircraft when needed and releasing them when no longer needed.
Single engine airtankers have been effectively used in Alaska
for initial attack and can be ordered through the compact.
While an aircraft can knock down a fire, it does not negate the
need to put crew on the ground to dig out the fire and ensure
that it really is out. On its contract and as part of the
national firefighting effort, Alaska has been providing three
retardant airtankers to the Lower 48 when the state's fire
season is over because the U.S. Forest Service has a severe
shortage of air tankers nationally. The state does not try to
make a profit on that, it only covers its administrative
expenses and some indirect charges. He advised that making a
profit can work both ways - if Alaska does that to the others
they will do that to Alaska.
2:33:30 PM
CO-CHAIR FEIGE surmised that Mr. Maisch believes the current
arrangement offers the most efficient use of funds to take care
of wildland fires.
MR. MAISCH replied yes, as long as the two CL-215s remain on
contract instate with BLM AFS. Reallocating those to Boise as
their primary base has been discussed, but the division has not
agreed with that and neither has AFS. Should that occur, the
division would need to examine whether to acquire at least a 90-
day contract for that type of resource in the state. In his
opinion, Alaska has the right mix of aviation resources for
doing the job, with the exception, perhaps, of rotor aircraft, a
whole other topic.
2:34:18 PM
CO-CHAIR SADDLER, noting the federal pullback of funds, inquired
about the funding status for state and federal initial attack
firefighting crews.
MR. MAISCH responded that state fire assistance comes through a
consolidated grant; therefore a lot of Alaska's firefighting
resources depend on a piece of [federal] funding. Alaska's
three initial attack crews are 100 percent federally funded, so
the shrinkage of federal dollars is a real issue. Over the last
10 years, state fire assistance nationally has gone down almost
19 percent and another large decrease is expected in the next
federal budget recently signed by Congress. The division has
kept the crews going by applying for, and successfully competing
for, hazard fuel monies, an example being the million dollars he
mentioned previously. When not actually fighting fire the crews
are doing hazard fuel mitigation. There are 60 positions of
these highly trained individuals in Alaska, so decreased federal
funding could be a significant challenge. This type of crew is
always needed every fire season and these types of crews are
brought from the Lower 48 every season as well.
2:36:20 PM
CO-CHAIR SADDLER, addressing Mr. Masterman, expressed his
interest in the Geological Materials Center and its move to a
new location. He asked about plans for the center's previous
site on Fish Hatchery Road.
MR. MASTERMAN replied that an evaluation of the property, which
belongs to DNR, is currently being done. Because there are
issues with the property, the investigation must be completed
before a decision can be made on whether to dispose of it. He
said he will therefore get back to the committee in this regard.
2:37:02 PM
CO-CHAIR FEIGE inquired about plans for continuing the airborne
geophysical program, given this program has identified
significant areas for further exploration.
MR. MASTERMAN answered that his division is currently evaluating
areas for which airborne geophysics will be flown in this
current year. This evaluation is being done in conjunction with
the division's Strategic and Critical Minerals Project to "kill
two birds with one stone" with the area that is selected. After
the area is determined, the process will begin for procuring the
contract.
2:38:14 PM
CO-CHAIR FEIGE asked whether any new geothermal targets have
been identified through the division's compilation process.
MR. MASTERMAN responded that the compilation was of existing
information and the next step will be to collect new data.
2:39:15 PM
REPRESENTATIVE TARR requested elaboration about the division's
collaboration with the University of Alaska, Fairbanks (UAF),
and the U.S. Geological Survey (USGS) on the shale oil potential
on the North Slope. She asked whether this collaboration is
part of the "Shale Task Force" and whether the task force is
still in existence and still meeting.
MR. MASTERMAN replied he is unaware of the Shale Task Force and
does not know if it is [still in existence]. He said the
division's collaboration involves looking at the shale horizons
that are the source rocks for the oil accumulations on the North
Slope. Several different stratigraphic horizons are of interest
from a tight oil perspective. This summer the division will
return with UAF and USGS to collect more samples for analysis of
thermal maturity, hydrocarbon content, and parameters that
affect the ability to extract oil from those rocks.
2:40:14 PM
CO-CHAIR FEIGE inquired whether the lack of funding to the USGS
is affecting the ability of the state's Volcanology Section to
track and maintain instruments up and down the Aleutian Islands.
It is in the state's best interest, he commented, to maintain
those instruments for information, given the air routes between
Alaska and Asia are heavily impacted every time there is an
eruption.
MR. MASTERMAN answered that, to date, the division's funding for
the Alaska Volcano Observatory has all been federal funding,
which has been declining over time and which he does not see
changing any time soon. So, that is impacting the network of
monitoring sites on the volcanoes along the Alaska Peninsula in
the Aleutians. Networks for two of the volcanoes have been lost
completely and are not providing any information. Of the 29
remaining sites, 8 are considered severely impaired in that they
will provide some after-the-fact information but will not allow
detection seismicity that might pre-date an eruption. Most
critical is Pavlof Volcano, which is near some communities on
the Alaska Peninsula and is one of the most active volcanoes.
In the last couple years, Pavlof's eruptions have caused local
flights to be diverted to avoid the ash cloud. The funding the
division gets from the federal government is inadequate to
maintain all of those facilities and is affecting the issues of
life, health, and safety.
2:42:33 PM
REPRESENTATIVE SEATON asked whether the division's North Slope
shale investigations are in the existing lease sale or in other
portions of the USGS-identified source rock.
MR. MASTERMAN responded he is not sure whether the division's
activities are on the actual lease sale, so he will get back to
the committee. Since the division's study is of the geology it
evaluates the rocks where they are sticking out of the ground -
the surface expression - and therefore the studies do not stop
at lease sale boundaries. In further response, he confirmed the
division works on the surface expression, not the lower level
potential. The division does not have access to the most recent
core that has been drilled on the North Slope.
2:43:55 PM
REPRESENTATIVE SEATON, addressing Ms. Menefee, requested further
clarification about the land exchange the Trust wishes to do.
MS. MENEFEE explained that the land exchange that the Trust is
pushing for with the Tongass National Forest is relative to the
diminished available timber in the Trust portfolio. The Trust
land office manages "buckets" of resources, and a diversity of
buckets is a good idea to maximize portfolio revenue. The
timber bucket is running out of timber so the Trust is
attempting to get timber back into that bucket to continue
having a timber revenue source for those times when, say, the
price of gold or other commodities in the market goes down. In
further response, she said the fundamental premise of the
exchange with the federal government is that it is an equal
value exchange. The lands that have been presented on the
federal side will be appraised for their value as will the Trust
lands and then it will be a value-for-value exchange. Returning
to the topic of who are the Trust beneficiaries, Ms. Menefee
said that the most obvious beneficiaries are Alaskans with
mental illness.
2:46:54 PM
CO-CHAIR SADDLER, addressing Mr. Goodrum, inquired how important
[HB 77] is to improvement of the permitting backlog.
MR. GOODRUM replied that the division, and the department as a
whole, has been approaching it as an "all of the above"
approach. People, process, and legislative packages are all
important as the division tries to modernize the system and make
it more efficient and transparent for customers. A number of
changes still need to come, but the division is aggressively
pursuing those and working to make good and legally defensible
decisions for the use of state land and water. The division is
not there yet, but it is a process of continuous improvement.
CO-CHAIR SADDLER praised the progress with permitting that has
been made so far.
2:48:25 PM
REPRESENTATIVE SEATON related that constituents have told him
the charge for maricultural leases is $450 per acre, while it is
only $3 per acre for grazing leases and oil and gas leases.
Additionally, the capital intensiveness of mariculture
expenditures is often higher than it is for grazing leases or
agricultural leases. He urged that a balance be figured out in
order to promote economic development in Alaska's coastal
communities.
MR. GOODRUM concurred and said he looks forward to working with
Representative Seaton and other people in this regard.
2:49:56 PM
CO-CHAIR FEIGE, regarding the statement that the permit backlog
has been decreased 53.5 percent since the beginning of fiscal
year 2012, asked what the number of backlogged permits is.
MR. GOODRUM answered that at the start of fiscal year 2012 the
number was 2,658 authorizations in backlog. As of 12/31/13 the
number was 1,237. He allowed it is still a sizeable number that
needs to be addressed but said the division is continuing to
work on reducing it.
2:51:10 PM
REPRESENTATIVE TARR, addressing Mr. Barron, observed from slide
12 that 90 leases were awarded in the North Slope, all within 7
weeks of the sale date. She recalled Mr. Barron saying that it
used to take 8-12 months. She asked whether the expediency in
processing those leases was an internal re-alignment,
legislation, or both.
MR. BARRON responded that basically it was internal. The team
asked itself what it is doing and why is it doing that. A
critical aspect found out by the team is that it had a history
of holding all the leases until all of them were ready to be
adjudicated. It was decided not to do that anymore so that a
"problem child" needing more research would no longer hold up
the rest of the lease awards.
2:52:07 PM
REPRESENTATIVE SEATON noted that HB 129 was passed last session
[effective date 5/22/13] and, as intended, has expedited things.
However, he has received comments from people, especially in the
Ninilchik area, that now things are happening very quickly.
Rather than large swaths of state land, developers are taking
five acres and putting up a rig so that gas drilling is right
alongside the road or right next to people's properties. He
inquired whether the division is handling any questions on those
and whether there is public notice of those kinds of activities.
MR. BARRON replied that he thinks the aforementioned rigs are on
private, federal, or Native land and therefore are not under his
division's overview. No regulations have been propagated
relative to HB 129 because the division is still in the public
comment period, reviewing the comments, and checking how the
comments are fitting in with what the division is proposing.
2:53:55 PM
CO-CHAIR SADDLER, referring to the incentives that the state
offers for tax rates and jack-up drilling rigs in Cook Inlet,
asked whether there is any new information that committee
members should be aware of.
2:54:13 PM
MR. BARRON reported that activities in Cook Inlet were very
robust during this past summer's drilling season, especially
offshore activities. Furie Operating Alaska [successor-in-
interest] to Escopeta Oil Company continued its delineation work
in the Kitchen Lights Unit. Buccaneer and its primary working
interest owner, BlueCrest, continued to do activities at the
Cosmopolitan lease and is progressing its gas work offshore and
oil work onshore. Furie is now in the construction phase of a
small caisson platform, the first platform of this type in the
Cook Inlet and the division has been focused on ensuring the
correct engineering parameters for this environment. Kenai Loop
is still an aggressive play by Buccaneer, which recently spud at
West Eagle. Hilcorp continues to do very good work in oil
production and escalated work in the gas phase. Soon after
Hilcorp took over the properties of Marathon and Chevron and sat
down with the utilities, the gas default issue was quickly
solved and there are now secure contracts through 2018. Cook
Inlet Energy continues its activities and is now progressing a
purchase of some of the Armstrong properties in south Kenai.
2:56:30 PM
CO-CHAIR SADDLER related that the people of his district and
Southcentral Alaska have concerns about the future supply of
locally generated gas. He inquired about what the prospects
might be after 2018 given the level of activity.
MR. BARRON characterized it as very positive. The production
that will be coming from the Furie platform and the potential of
the production coming from the Cosmopolitan structures will be
coming on line arguably sometime between 2015 and 2017, which
will dovetail nicely with any issues that might come up in the
contractual basis in 2018.
2:57:12 PM
REPRESENTATIVE TARR, referring to slide 3, inquired how the
memorandum of understanding between DNR and Resources Energy,
Inc. (REI) fits into future projects.
MR. BARRON responded that if the question is how REI fits within
the framework, he does not have a clear answer. If the question
is how LNG, as a market, plays into the Cook Inlet, the answer
is that it is a piece. It is a piece whether it is from
supplying gas to Conoco for export or whether it is a piece
playing into potential deliveries to the local markets and
possibly trucking to Fairbanks, which has been going on for many
years. The real issue with Cook Inlet gas has always been
supply and demand. When there is more supply, the companies
need to find more demand. If they do not find the demand then
their opportunities to capitalize their money goes elsewhere.
The more gas available, the increase market can be driven.
Agrium has been talking to the division, ConocoPhillips is
continuing to think about getting its license renewed, and there
is also Donlin Creek as well as gas storage projects. All of
these begin to play into a broader mix of supply and demand
matrix.
2:59:21 PM
CO-CHAIR FEIGE, addressing Mr. Ellis, reported he has received
complaints regarding the management of snowmachine access in the
Hatcher Pass area. It seems that one class of user in that area
is being favored while snowmachiners are being restricted. He
said Mr. Ellis is welcome to get back to him on this issue.
MR. ELLIS replied that last year the division started a new
management plan for access, and he will provide the co-chair
with a detailed answer.
3:00:23 PM
CO-CHAIR FEIGE, moving to another issue, related that people are
willing to volunteer at the Worthington Glacier observation site
near Thompson Pass on the Richardson Highway, but they are being
told that there are no funds to open the site. Given the volume
of tourism along this corridor and Valdez, he said he would like
to see what can be done to re-open the site. Co-Chair Feige
continued, reporting that another issue is outhouses along the
road that are open in the summer but closed and locked in the
winter. He advocated that as long as the road next to an
outhouse is plowed that outhouse should be open. In particular
is the Paxson Road area now that the lodge there has closed.
MR. ELLIS answered that some waysides are under the Department
of Transportation & Public Facilities (DOT&PF). A map of what
is available is currently being looked at to address this issue,
whether it is DOT&PF or parks.
3:03:20 PM
CO-CHAIR SADDLER asked the progress being made on the Division
of Parks & Outdoor Recreation's backlog of deferred maintenance.
MR. ELLIS responded that the division has approximately $60
million worth of deferred maintenance within Alaska's state
parks. Over the last three or four years the funding of around
$3 million a year toward deferred maintenance has kept this
about even. The division evaluates the deferred maintenance and
priorities twice a year. Unfortunately, it stays at about $60
million with the $3 million in annual funding.
3:04:26 PM
REPRESENTATIVE SEATON addressed Commissioner Balash regarding a
resolution that was passed by the legislature supporting the
extension of the ConocoPhillips export license and which
included a clause related to rack availability of liquefied
natural gas (LNG) for Alaskans. He inquired whether the
Department of Natural Resources is making sure that no matter
what goes forward for LNG there will be rack availability at
commercially reasonable terms.
3:05:25 PM
COMMISSIONER BALASH replied that he will provide the committee
with a copy of the letter he sent to ConocoPhillips asking the
company to develop an application for additional export volumes
from that facility. Included in that letter was mention of a
truck rack.
3:05:48 PM
ADJOURNMENT
There being no further business before the committee, the House
Resources Standing Committee meeting was adjourned at 3:06 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Balash_DNR Update_House Resources_1-24-14.pdf |
HRES 1/24/2014 1:00:00 PM |