Legislature(2017 - 2018)BARNES 124

02/08/2017 01:00 PM RESOURCES

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Audio Topic
01:50:29 PM Start
01:50:56 PM Overview: Alaska Oil and Gas Conservation Commission
02:27:44 PM HB40
02:58:24 PM HB111
07:02:40 PM HJR5
09:12:00 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to 06:00 pm --
-- Delayed to 20 Minutes Following Session --
+ Overview: AK Oil & Gas Conservation Commission TELECONFERENCED
-- Testimony <Invitation Only> --
*+ HB 111 OIL & GAS PRODUCTION TAX;PAYMENTS;CREDITS TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+= HB 40 TRAPPING NEAR PUBLIC TRAILS TELECONFERENCED
Heard & Held
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
= HJR 5 ENDORSING ANWR LEASING; RELATED ISSUES
Moved CSHJR 5(AET) Out of Committee
**Streamed live on AKL.tv**
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE RESOURCES STANDING COMMITTEE                                                                             
                        February 8, 2017                                                                                        
                           1:50 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Andy Josephson, Co-Chair                                                                                         
Representative Geran Tarr, Co-Chair                                                                                             
Representative Harriet Drummond                                                                                                 
Representative Justin Parish                                                                                                    
Representative Chris Birch                                                                                                      
Representative DeLena Johnson                                                                                                   
Representative George Rauscher                                                                                                  
Representative David Talerico                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Dean Westlake, Vice Chair                                                                                        
Representative Mike Chenault (alternate)                                                                                        
Representative Chris Tuck (alternate)                                                                                           
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
OVERVIEW:  ALASKA OIL AND GAS CONSERVATION COMMISSION                                                                           
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 40                                                                                                               
"An Act  prohibiting and providing  penalties and  civil remedies                                                               
for  trapping  within  200 feet  of  certain  public  facilities,                                                               
areas, and trails; and providing for an effective date."                                                                        
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 111                                                                                                              
"An  Act  relating  to  the  oil  and  gas  production  tax,  tax                                                               
payments,  and  credits;  relating   to  interest  applicable  to                                                               
delinquent  oil and  gas  production tax;  and  providing for  an                                                               
effective date."                                                                                                                
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE JOINT RESOLUTION NO. 5                                                                                                    
Urging the  United States  Congress to  pass legislation  to open                                                               
the coastal plain  of the Arctic National Wildlife  Refuge to oil                                                               
and gas development;  urging the United States  Department of the                                                               
Interior to  recognize the private  property rights of  owners of                                                               
land  in and  adjacent to  the Arctic  National Wildlife  Refuge;                                                               
relating  to oil  and gas  exploration, development,  production,                                                               
and royalties;  and relating to renewable  and alternative energy                                                               
technologies.                                                                                                                   
                                                                                                                                
     - MOVED CSHJR 5(AET) OUT OF COMMITTEE                                                                                      
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB  40                                                                                                                  
SHORT TITLE: TRAPPING NEAR PUBLIC TRAILS                                                                                        
SPONSOR(s): REPRESENTATIVE(s) JOSEPHSON                                                                                         
                                                                                                                                
01/18/17       (H)       PREFILE RELEASED 1/13/17                                                                               
01/18/17       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/18/17       (H)       RES, FIN                                                                                               
02/06/17       (H)       RES AT 1:00 PM BARNES 124                                                                              
02/06/17       (H)       Heard & Held                                                                                           
02/06/17       (H)       MINUTE(RES)                                                                                            
02/08/17       (H)       RES AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
BILL: HJR  5                                                                                                                  
SHORT TITLE: ENDORSING ANWR LEASING; RELATED ISSUES                                                                             
SPONSOR(s): WESTLAKE                                                                                                            
                                                                                                                                
01/18/17       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/18/17       (H)       RES                                                                                                    
01/20/17       (H)       AET REFERRAL ADDED BEFORE RES                                                                          
01/20/17       (H)       BILL REPRINTED 1/20/17                                                                                 
01/24/17       (H)       AET AT 11:30 AM BARNES 124                                                                             
01/24/17       (H)       Heard & Held                                                                                           
01/24/17       (H)       MINUTE(AET)                                                                                            
01/26/17       (H)       AET AT 11:30 AM BARNES 124                                                                             
01/26/17       (H)       Moved CSHJR 5(AET) Out of Committee                                                                    
01/26/17       (H)       MINUTE(AET)                                                                                            
01/27/17       (H)       AET RPT CS(AET) 4DP                                                                                    
01/27/17       (H)       DP: TUCK, JOSEPHSON, TALERICO, WESTLAKE                                                                
01/27/17       (H)       RES AT 1:00 PM BARNES 124                                                                              
01/27/17       (H)       Heard & Held                                                                                           
01/27/17       (H)       MINUTE(RES)                                                                                            
02/08/17       (H)       RES AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 111                                                                                                                  
SHORT TITLE: OIL & GAS PRODUCTION TAX;PAYMENTS;CREDITS                                                                          
SPONSOR(s): RESOURCES                                                                                                           
                                                                                                                                
02/08/17       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/08/17       (H)       RES, FIN                                                                                               
02/08/17       (H)       TALERICO OBJECTED TO INTRODUCTION                                                                      
02/08/17       (H)       INTRODUCTION RULED IN ORDER                                                                            
02/08/17       (H)       SUSTAINED RULING OF CHAIR Y23 N15 E2                                                                   
02/08/17       (H)       RES AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
CATHY FOERSTER, Commissioner/Chair                                                                                              
Alaska Oil and Gas Conservation Commission                                                                                      
Department of Administration                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Provided a PowerPoint presentation                                                                       
entitled, "Alaska Oil and Gas Conservation Commission," and                                                                     
answered questions.                                                                                                             
                                                                                                                                
JIM KOWALSKY, Spokesperson                                                                                                      
Alaskans for Wildlife                                                                                                           
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 40.                                                                           
                                                                                                                                
KENNY BARBER                                                                                                                    
Palmer, Alaska                                                                                                                  
POSITION STATEMENT:  His testimony in opposition to HB 40 was                                                               
read by Patti Barber.                                                                                                           
                                                                                                                                
PATTI BARBER                                                                                                                    
Palmer, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in opposition to HB 40.                                                                        
                                                                                                                                
ALYSON PYTTE                                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 40.                                                                           
                                                                                                                                
JONATHAN ZEPPA, Spokesperson                                                                                                    
Alaska Frontier Trappers Association, Inc.                                                                                      
Palmer, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in opposition to HB 40.                                                                        
                                                                                                                                
MARK LUTRELL                                                                                                                    
Seward, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in support of HB 40.                                                                           
                                                                                                                                
ROBERT MATHEWS                                                                                                                  
Delta Sportsmans Association Inc.                                                                                               
Delta Junction, Alaska                                                                                                          
POSITION STATEMENT:  Testified in opposition to HB 40.                                                                        
                                                                                                                                
JAMES SQUYRES                                                                                                                   
Deltana, Alaska                                                                                                                 
POSITION STATEMENT:  Stated his support for portions of HB 40                                                                 
and his opposition to portions of HB 40.                                                                                        
                                                                                                                                
DAN DUNAWAY                                                                                                                     
Dillingham, Alaska                                                                                                              
POSITION STATEMENT:  Testified in opposition to HB 40.                                                                        
                                                                                                                                
DAN BOYD                                                                                                                        
Dillingham, Alaska                                                                                                              
POSITION STATEMENT:  Testified in support of HB 40.                                                                           
                                                                                                                                
ASHLEY STRAUCH, Staff                                                                                                           
Representative Scott Kawasaki                                                                                                   
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Speaking on her own behalf, testified in                                                                 
support of HB 40.                                                                                                               
                                                                                                                                
LINDA DEFOLIART                                                                                                                 
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 40.                                                                           
                                                                                                                                
KERI PETERSON                                                                                                                   
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified during the hearing of HB 40.                                                                   
                                                                                                                                
PAMELA GOODE                                                                                                                    
Deltana, Alaska                                                                                                                 
POSITION STATEMENT:  Spoke on a topic not on the committee                                                                    
calendar, and testified in opposition to HB 40.                                                                                 
                                                                                                                                
RICHARD PERSON                                                                                                                  
Chugiak, Alaska                                                                                                                 
POSITION STATEMENT:  Testified in opposition to HB 40.                                                                        
                                                                                                                                
TOM LESSARD                                                                                                                     
Cooper Landing, Alaska                                                                                                          
POSITION STATEMENT:  Testified in opposition to HB 40.                                                                        
                                                                                                                                
LYNN KEOGH                                                                                                                      
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HB 40.                                                                        
                                                                                                                                
AL BARRETTE                                                                                                                     
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HB 40.                                                                        
                                                                                                                                
MIKE SATRE                                                                                                                      
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in support of HJR 5.                                                                           
                                                                                                                                
FRANK BERGSTROM                                                                                                                 
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in support of HJR 5.                                                                           
                                                                                                                                
JULIA YORK                                                                                                                      
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HJR 5.                                                                        
                                                                                                                                
STEVEN GREENLAW                                                                                                                 
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HJR 5.                                                                        
                                                                                                                                
RICHARD GLENN, Vice President                                                                                                   
Land and Natural Resources                                                                                                      
Arctic Slope Regional Corporation                                                                                               
Barrow/Utqiaguik, Alaska                                                                                                        
POSITION STATEMENT:  Testified in support of HJR 5.                                                                           
                                                                                                                                
KARA MORIARTY, President/CEO                                                                                                    
Alaska Oil and Gas Association                                                                                                  
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HJR 5.                                                                           
                                                                                                                                
ALEXANDER GEDSCHINSKY                                                                                                           
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HJR 5.                                                                        
                                                                                                                                
PRINCESS JOHNSON                                                                                                                
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HJR 5.                                                                        
                                                                                                                                
ANNE SENECA, Spokesperson                                                                                                       
Consumer Energy Alliance Alaska                                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified during the hearing of HJR 5.                                                                   
                                                                                                                                
DONETTA TRITT                                                                                                                   
Arctic Village, Alaska                                                                                                          
POSITION STATEMENT:  Testified in opposition to HJR 5.                                                                        
                                                                                                                                
RON YARNELL, Owner                                                                                                              
All About Adventure                                                                                                             
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HJR 5.                                                                        
                                                                                                                                
NARIEEZH PETER                                                                                                                  
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HJR 5.                                                                        
                                                                                                                                
MATT GILBERT                                                                                                                    
Arctic Village, Alaska                                                                                                          
POSITION STATEMENT:  Testified in opposition to HJR 5.                                                                        
                                                                                                                                
ENEI PETER                                                                                                                      
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HJR 5.                                                                        
                                                                                                                                
LINDA DEFOLIART                                                                                                                 
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HJR 5.                                                                        
                                                                                                                                
JUSTINA BEAGNYAM                                                                                                                
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HJR 5.                                                                        
                                                                                                                                
JENNA JONAS                                                                                                                     
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HJR 5.                                                                        
                                                                                                                                
CHRISTINA EDWIN                                                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HJR 5.                                                                        
                                                                                                                                
KEITH SILVER                                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HJR 5.                                                                           
                                                                                                                                
MISTY NICKOLI                                                                                                                   
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HJR 5.                                                                        
                                                                                                                                
KERI PETERSON                                                                                                                   
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HJR 5.                                                                        
                                                                                                                                
ODIN MILLER                                                                                                                     
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified during the hearing of HJR 5.                                                                   
                                                                                                                                
SAM ALEXANDER                                                                                                                   
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HJR 5.                                                                        
                                                                                                                                
JESSICA GIRARD                                                                                                                  
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HJR 5.                                                                        
                                                                                                                                
MICHELLE TOOHEY                                                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HJR 5.                                                                           
                                                                                                                                
MELINDA CHASE, Spokesperson                                                                                                     
Fairbanks Climate Coalition                                                                                                     
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HJR 5.                                                                        
                                                                                                                                
SHANNON BUSBY                                                                                                                   
Ester, Alaska                                                                                                                   
POSITION STATEMENT:  Testified in opposition to HJR 5.                                                                        
                                                                                                                                
BARBARA HUFF TUCKESS, Director                                                                                                  
Legislative Affairs                                                                                                             
Teamsters Local 959                                                                                                             
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in support of CSHJR 5.                                                                         
                                                                                                                                
KIM HEACOX                                                                                                                      
Gustavus, Alaska                                                                                                                
POSITION STATEMENT:  Testified in opposition to HJR 5.                                                                        
                                                                                                                                
JEANINE ST. JOHN, Spokesperson                                                                                                  
Lynden Transport                                                                                                                
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in support of HJR 5.                                                                           
                                                                                                                                
SARAH JAMES                                                                                                                     
Arctic Village                                                                                                                  
POSITION STATEMENT:  Testified in opposition to HJR 5.                                                                        
                                                                                                                                
ELLA EDE                                                                                                                        
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HJR 5.                                                                           
                                                                                                                                
MICHELLE EGAN, Spokesperson                                                                                                     
Alyeska Pipeline Service Company                                                                                                
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HJR 5.                                                                           
                                                                                                                                
CARL PORTMAN, Deputy Director                                                                                                   
Resource Development Council                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HJR 5.                                                                           
                                                                                                                                
CAROLYN KREMERS                                                                                                                 
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HJR 5.                                                                        
                                                                                                                                
JAMES SQUYRES                                                                                                                   
Deltana, Alaska                                                                                                                 
POSITION STATEMENT:  Testified in support of HJR 5.                                                                           
                                                                                                                                
JOHN HYDE                                                                                                                       
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in opposition to HJR 5.                                                                        
                                                                                                                                
KRISTINA OLESKA (indisc.)                                                                                                       
Sutton, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in opposition to HJR 5.                                                                        
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:50:29 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  ANDY  JOSEPHSON  called the  House  Resources  Standing                                                             
Committee  meeting  to  order  at   1:50  p.m.    Representatives                                                               
Josephson,  Rauscher,  Drummond,  Johnson, Parish,  and  Talerico                                                               
were  present at  the call  to order.   Representatives  Tarr and                                                               
Birch arrived as the meeting was in progress.                                                                                   
                                                                                                                                
^OVERVIEW:  ALASKA OIL AND GAS CONSERVATION COMMISSION                                                                          
     OVERVIEW:  ALASKA OIL AND GAS CONSERVATION COMMISSION                                                                  
                                                                                                                              
1:50:56 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOSEPHSON announced that the first order of business                                                                   
would be a presentation by the Alaska Oil and Gas Conservation                                                                  
Commission (AOGCC).                                                                                                             
                                                                                                                                
1:52:16 PM                                                                                                                    
                                                                                                                                
CATHY   FOERSTER,   Commissioner/Chair,   Alaska  Oil   and   Gas                                                               
Conservation Commission,  Department of  Administration, provided                                                               
a  PowerPoint   presentation  entitled,   "Alaska  Oil   and  Gas                                                               
Conservation  Commission (AOGCC)."    Ms.  Foerster informed  the                                                               
committee AOGCC is an independent  quasi-judicial body that holds                                                               
hearings and makes rulings on  well spacing and other exceptions,                                                               
pool  rules,   gas  offtake   allowables,  drilling   wells,  and                                                               
wellwork.   The commission has three  commissioners with six-year                                                               
terms  that are  staggered every  two  years, and  she urged  the                                                               
committee to advance the appointment  of Mr. Hollis French to the                                                               
public  seat and  the reappointment  of Mr.  Dan Seamount  to the                                                               
petroleum  geologist seat.    The commission  is  staffed by  two                                                               
geologists,  six engineers,  nine field  inspectors, and  various                                                               
administrative  support  positions,  and  has a  budget  of  $7.8                                                               
million.   She asked the committee  to note that none  of AOGCC's                                                               
funding  comes  from  general  funds,  but  is  assessed  to  the                                                               
regulated industry;  in addition,  a cut  to AOGCC's  budget will                                                               
slow  permitting and  inspections which  in turn,  will slow  the                                                               
industry and its production of revenue (slide 1).                                                                               
                                                                                                                                
1:57:17 PM                                                                                                                    
                                                                                                                                
MS. FOERSTER  stated AOGCC is  charged with preventing  waste and                                                               
encouraging  greater  recovery   of  hydrocarbon  and  geothermal                                                               
resources,  protecting  fresh   groundwater  sources  during  oil                                                               
productions operations, correlative rights,  and human health and                                                               
safety   during   wellwork   operations.       The   duties   and                                                               
responsibilities of AOGCC differ from  those of the Department of                                                               
Natural  Resources   (DNR)  in  that  DNR   ensures  the  state's                                                               
resources are  developed to provide maximum  benefit to Alaskans,                                                               
and  AOGCC's role  is  to regulate  the  industry throughout  the                                                               
state.  As  an independent agency, AOGCC can  serve to adjudicate                                                               
between DNR  and industry.   In 2016, AOGCC's activities  were as                                                               
follows:    providing  adequate   regulatory  oversight  for  the                                                               
exploration  and development  activities  in Cook  Inlet, on  the                                                               
North  Slope, and  in remote  areas  of the  state; updating  and                                                               
modifying regulations  in order to stay  current with technology,                                                               
and new information;  working with the Bureau  of Land Management                                                               
(BLM),  U.S.  Department of  the  Interior,  on the  legacy  well                                                               
cleanup;  working  with  small   operator  bankruptcy  and  lease                                                               
relinquishments  to avoid  adding  orphan wells  to the  existing                                                               
inventory (slides 2 and 3).                                                                                                     
                                                                                                                                
2:00:52 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  JOSEPHSON  asked how  an  orphan  well differs  from  a                                                               
legacy well.                                                                                                                    
                                                                                                                                
MS.  FOERSTER  explained  orphan  wells have  not  been  properly                                                               
plugged  and  abandoned,  and no  one  is  responsible;  however,                                                               
legacy wells were  drilled by the federal  government, which must                                                               
take  responsibility.    She returned  to  the  presentation  and                                                               
advised  in spite  of  lower oil  prices,  drilling and  wellwork                                                               
activity   continued  at   a  steady   pace  in   2016;  BP   and                                                               
ConocoPhillips  Alaska,  Inc.  continued to  drill  and  workover                                                               
wells  at   Prudhoe  Bay,  Kuparuk  and   Colville,  and  Hilcorp                                                               
continued  fixing  broken  wells  at Milne  Point  other  fields.                                                               
Further, in 2017, AOGCC expects  industry activity to continue at                                                               
the same  pace, with Blue  Crest development at  Cosmopolitan and                                                               
AIX  working in  the Kenai  Loop  field.   Armstrong will  follow                                                               
Repsol on  the North Slope,  there will be one  shale exploratory                                                               
well,  and  Cook  Inlet  Energy  and Furie  will  each  drill  an                                                               
exploratory well  in Cook Inlet.   Caelus will not  have wellwork                                                               
in  Smith Bay  (slide 4).    Ms. Foerster  said AOGCC  constantly                                                               
evaluates its regulations,  and proposed changes are  to be heard                                                               
in  the near  future.   Proposed  changes are  to accomplish  the                                                               
following:     stay   current  with   technology  and   operating                                                               
practices;  fill   a  gap;  clarify  something   that  was  being                                                               
misinterpreted.                                                                                                                 
                                                                                                                                
2:03:44 PM                                                                                                                    
                                                                                                                                
MS. FOERSTER informed  the committee AOGCC has  been updating its                                                               
hydraulic fracturing regulations to  relate to current technology                                                               
and  political  climate; the  regulations  were  reviewed by  the                                                               
State  Review of  Oil and  Natural Gas  Environmental Regulations                                                               
Inc.  (STRONGER), which  is a  nationally recognized  consortium,                                                               
and  received a  favorable outcome.   In  fact, it  is considered                                                               
that Alaska has the most  comprehensive and stringent regulations                                                               
in the country  for hydraulic fracturing, and  AOGCC continues to                                                               
analyze its regulations in response  to public requests.  Also in                                                               
2017,  AOGCC  will  work with  the  Department  of  Environmental                                                               
Conservation (DEC) to transfer  the regulatory responsibility for                                                               
blowout contingency  planning to AOGCC, although  DEC will retain                                                               
control of the  portion of the contingency plan  related to spill                                                               
cleanup (slide  5).  Ms. Foerster  explained improperly abandoned                                                               
wells are  more of  a problem  in the Lower  48, where  there has                                                               
been oil and gas activity for  over a century, with the exception                                                               
of the travesty  wells in Northwest Alaska that  were drilled and                                                               
operated by  the federal  government.  In  2014, $50  million was                                                               
allocated  for cleanup  and  BLM  began work  on  two wells,  but                                                               
neither  the cleanup  plan nor  state regulations  were followed,                                                               
thus the wells are not plugged  and are in worse disrepair.  This                                                               
year AOGCC  negotiated a memorandum  of understanding  (MOU) with                                                               
BLM to  ensure BLM  will follow all  of Alaska's  applicable laws                                                               
(slide 6 and 7).                                                                                                                
                                                                                                                                
2:08:53 PM                                                                                                                    
                                                                                                                                
MS.  FOERSTER,  in  response  to  Representative  Drummond,  will                                                               
identify the oil  rigs illustrated in the  presentation.  Turning                                                               
to  orphan wells,  she said  as oil  fields mature,  and new  and                                                               
smaller  companies come  to  work  in the  state,  the threat  of                                                               
orphan wells  increases.  In  2016, two operating  companies went                                                               
bankrupt; if their  assets are not purchased  by another company,                                                               
the landowner, frequently the state,  is responsible for plugging                                                               
the well(s).                                                                                                                    
                                                                                                                                
CO-CHAIR  JOSEPHSON  questioned  whether  the state  has  a  bond                                                               
system for wells.                                                                                                               
                                                                                                                                
2:10:41 PM                                                                                                                    
                                                                                                                                
MS.  FOERSTER  said  the present  system  collects  two  $100,000                                                               
plugging  and abandonment  bonds to  cover all  of the  wells one                                                               
company operates.   In addition, privately-held  companies can be                                                               
less financially secure than are  ConocoPhillips Alaska, Inc., or                                                               
BP.  In  further response to Co-Chair Josephson, she  said all of                                                               
the  companies are  treated  the  same, "and  we  need to  change                                                               
that."   Ms.  Foerster further  explained  that there  are a  few                                                               
orphan  wells  in  the  state,  all  of  which  were  drilled  by                                                               
companies that no longer exist.                                                                                                 
                                                                                                                                
2:12:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PARISH asked for  the approximate cost of plugging                                                               
one well on the North Slope or in Cook Inlet.                                                                                   
                                                                                                                                
MS. FOERSTER  said there is  no one  answer; the cost  depends on                                                               
its location, and estimates range from $100,000 to $20,000,000.                                                                 
                                                                                                                                
REPRESENTATIVE  DRUMMOND  suggested   the  state  should  require                                                               
insurance to support the bonds.                                                                                                 
                                                                                                                                
MS. FOERSTER  agreed a different  type of coverage is  needed for                                                               
smaller  companies.    In   further  response  to  Representative                                                               
Drummond,  she   opined  further  regulation  will   not  require                                                               
legislation; the  plan is  to advise  the administration  and the                                                               
industry  of  the  needed  changes,  gather  testimony  from  the                                                               
affected parties through hearings,  and provide sufficient notice                                                               
of  AOGCC's   final  decision.     Returning  attention   to  the                                                               
presentation, she noted also in  2016, two companies relinquished                                                               
leases that had wells; DNR  regulations related to relinquishment                                                               
conflict with those  of AOGCC, thus AOGCC seeks to  work with DNR                                                               
to avoid  this situation.  In  order to protect the  state from a                                                               
huge orphan well liability, AOGCC  will accomplish the following:                                                               
collect  the  bond  from  failing companies;  work  with  DNR  to                                                               
eliminate  the   aforementioned  gaps  in   lease  relinquishment                                                               
procedures;  change  the  state's bonding  structure;  work  with                                                               
operators  to prudently  identify  and plug  wells  that have  no                                                               
future utility (slide 7).                                                                                                       
                                                                                                                                
2:19:19 PM                                                                                                                    
                                                                                                                                
MS.  FOERSTER reviewed  the  role  of AOGCC  in  gas offtake  and                                                               
advised all of the  gas from Prudhoe Bay is used  to get more oil                                                               
out  of the  ground; however,  at Point  Thomson, gas  production                                                               
will leave a significant amount  of condensate unrecoverable.  In                                                               
addition, producing  gas strands  oil, but  when oil  is produced                                                               
and gas  is reinjected,  the gas remains  recoverable at  a later                                                               
date.  Therefore, AOGCC is  disinclined to allow gas offtake that                                                               
would  cause  oil  waste;  however,  AOGCC  granted  gas  offtake                                                               
allowables  to Prudhoe  Bay  and Point  Thomson  for a  "2025ish"                                                               
timeframe based  on a  window of opportunity  for selling  gas in                                                               
the mid-20s, and  reservoir studies that have  indicated the pool                                                               
of oil  at risk of  being lost is smaller  than the value  of the                                                               
gas.                                                                                                                            
                                                                                                                                
CO-CHAIR JOSEPHSON questioned whether  AOGCC has the authority to                                                               
rescind its gas offtake allowables.                                                                                             
                                                                                                                                
MS. FOERSTER said  if data indicated there would be  waste of the                                                               
resource, AOGCC  would make any  changes necessary.   In response                                                               
to Representative Talerico, she said  Furie and Cook Inlet Energy                                                               
may each drill one well in Cook Inlet.                                                                                          
                                                                                                                                
REPRESENTATIVE PARISH surmised the  current situation is that the                                                               
state would have $200,000 to plug  all of BP's wells should it go                                                               
out of business in the distant future.                                                                                          
                                                                                                                                
MS. FOERSTER said AOGCC is working  on a new process designed "to                                                               
ensure that that is not a problem."                                                                                             
                                                                                                                                
REPRESENTATIVE BIRCH appreciated the work done by AOGCC.                                                                        
                                                                                                                                
REPRESENTATIVE TALERICO  inquired as to whether  regulations need                                                               
to be updated for both technological and mechanical innovations.                                                                
                                                                                                                                
MS. FOERSTER said yes.   Sometimes regulations become out-of-date                                                               
or  information  is received  from  the  Interstate Oil  and  Gas                                                               
Compact Commission indicating a change is warranted.                                                                            
                                                                                                                                
               HB  40-TRAPPING NEAR PUBLIC TRAILS                                                                           
                                                                                                                                
2:27:44 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  JOSEPHSON announced  that  the next  order of  business                                                               
would be  HOUSE BILL  NO. 40, "An  Act prohibiting  and providing                                                               
penalties  and civil  remedies for  trapping within  200 feet  of                                                               
certain public  facilities, areas, and trails;  and providing for                                                               
an effective date."                                                                                                             
                                                                                                                                
CO-CHAIR JOSEPHSON opened public testimony on HB 40.                                                                            
                                                                                                                                
2:28:04 PM                                                                                                                    
                                                                                                                                
JIM  KOWALSKY said  he  was speaking  for  Alaskans for  Wildlife                                                               
which  is   a  nonprofit   organization  promoting   respect  for                                                               
wildlife.   He  expressed support  for  HB 40  as presented,  and                                                               
opined this  is not a Board  of Game (BOG), Alaska  Department of                                                               
Fish  & Game  (ADF&G),  matter  or an  allocation  matter, but  a                                                               
matter  of public  safety and  public  health; in  fact, BOG  has                                                               
refused to  address this  issue, thus  Alaskans for  Wildlife has                                                               
turned  to  the legislative  process.    The  topic may  be  more                                                               
germane  to urban  areas where  conflict between  trail users  is                                                               
frequent.    Mr.  Kowalsky expressed  his  organization's  strong                                                               
support for  the bill, including  identifying traps with  tags in                                                               
order to aid the enforcement of regulations.                                                                                    
                                                                                                                                
2:30:38 PM                                                                                                                    
                                                                                                                                
PATTI  BARBER, on  behalf  of Kenny  Barber,  read the  following                                                               
testimony:                                                                                                                      
                                                                                                                                
     I am opposed to HB 40,  the reason is because trap tags                                                                    
     are another way to create  problems for trappers in the                                                                    
     field.   Trap  tags have  been removed  by people  that                                                                    
     don't  agree  with  the  activity  and  place  them  in                                                                    
     another location  to harm the  trapper.  The  fines and                                                                    
     imprisonment portion of this bill  are too high for the                                                                    
     trapper  and no  mention of  consequences for  dogs off                                                                    
     leash.   Where is the justice?   As a trapper  for over                                                                    
     55 years, 10 years as a  child in New York and 45 years                                                                    
     in Alaska,  I have never caught  a domesticated animal.                                                                    
     My trap  line was  on one  of the  highest recreational                                                                    
     use areas in the state, the  Knik River.  Trapping is a                                                                    
     legal activity.   Dogs  off leash  are illegal  in many                                                                    
     areas  of  the  state  such  as  state  parks  and  the                                                                    
     Matanuska-Susitna (Mat-Su) Borough.   Dogs off leash do                                                                    
     not, and not  under voice control are left  to run free                                                                    
     and  have been  known to  run in  packs and  kill other                                                                    
     wildlife  such as  moose and  caribou calves,  rabbits,                                                                    
     birds, and  other small animals.   Dog bites  to humans                                                                    
     occur more  often than  a dog being  caught in  a trap.                                                                    
     Currently,  there have  been only  five dogs  caught in                                                                    
     traps in the  Mat-Su Borough in 2016.  In  the state of                                                                    
     Alaska epidemiology  reports there have been  292 total                                                                    
     dog bite  related injuries  or hospitalizations  in 11-                                                                    
     year study  period.   Many were  children aged  zero to                                                                    
     four years as the highest  rate.  A hundred and thirty-                                                                    
     three of  these injuries were within  the Anchorage and                                                                    
     Mat-Su  boroughs,  the  highest  injury  count  in  the                                                                    
     state.   When we came  to Alaska  in 1970 I  worked for                                                                    
     Valley  Memory Garden  Cemetery, while  there I  helped                                                                    
     bury two children  that were killed by dogs.   In years                                                                    
     past there have been 1,176  dogs euthanized in one year                                                                    
     at the Mat-Su  animal control center.  I  am unaware of                                                                    
     a  child or  adult being  maimed or  caught in  a trap.                                                                    
     During testimony  on Monday there was  mention that the                                                                    
     board of game  was unwilling to address  the problem of                                                                    
     dogs and  trapping.  I  was appointed by board  of game                                                                    
     chairman, (indisc.)  to sit on  a committee  to address                                                                    
     this problem.     The committee  consisted of  fish and                                                                    
     game  advisory  committee members,  Anchorage,  Mat-Su,                                                                    
     and  Soldotna, one  state trapper  organization member,                                                                    
     three  anti-trapping members,  and  one  member of  the                                                                    
     board of  game was picked  to chair the committee.   We                                                                    
     met for  two years  on this  issue alone.   We  came up                                                                    
     with  some solutions  such  as  signage at  trailheads,                                                                    
     educating   the  public   that  trapping   occurs  from                                                                    
     November to April,  and that dogs should be  on a leash                                                                    
     during that timeframe.  The  330 and 220 conibear traps                                                                    
     could only  be used underwater  or ice within  100 feet                                                                    
     of a maintained  trail.  The Mat-Su  Borough is working                                                                    
     on  an ordinance  to restrict  trapping on  portions of                                                                    
     the Crevasse Moraine  Trail and on school  property.  I                                                                    
     sit  on the  parks and  recreation advisory  committee.                                                                    
     As  a  committee we  have  discussed  the ordinance  at                                                                    
         length, and I am not speaking on this for that                                                                         
     committee.                                                                                                                 
                                                                                                                                
2:35:16 PM                                                                                                                    
                                                                                                                                
PATTI BARBER, speaking on her own  behalf, said she is opposed to                                                               
HB 40  because trapping is legal  and dogs off leash  are illegal                                                               
in many  portions of the  state.   Signage alerting users  to the                                                               
presence of  traps from November  to April is appropriate.   Dogs                                                               
are attracted to  bait and in some areas of  the state underwater                                                               
trapping for beaver, mink, or  muskrat occurs earlier in the year                                                               
and is  not a threat  to dogs.   Instead of requiring  trap tags,                                                               
she  suggested creating  a  dog park  so dogs  can  be off  leash                                                               
during  trapping season;  dogs  would  be safe  from  traps in  a                                                               
fenced area.  She  noted that many dogs and cats  are loose.  Dog                                                               
owners  use  trails all  of  the  time,  and also  use  trappers'                                                               
personal trails.  Ms. Barber said  trappers have to pay fines and                                                               
suffer imprisonment  for violations, but  dog owners do  not, and                                                               
opined all illegal parties should pay at the same rate.                                                                         
                                                                                                                                
REPRESENTATIVE PARISH questioned whether  Mr. or Ms. Barber would                                                               
support a bill targeted at graveled and paved trails.                                                                           
                                                                                                                                
MR.  BARBER  said  yes  to   paved  trails,  but  questioned  the                                                               
definition of  a maintained trail,  of which  there are few.   He                                                               
said most  trappers are known  to ADF&G and  it has the  right to                                                               
ticket a trapper.  There is  no problem with paved trails or bike                                                               
trails in Anchorage.                                                                                                            
                                                                                                                                
REPRESENTATIVE BIRCH  observed some  have expressed  a preference                                                               
for a local government control  option in regard to trapping, and                                                               
asked how a local government is empowered "to manage trapping."                                                                 
                                                                                                                                
MR. BARBER said he cannot  speak for "that" committee, but Alaska                                                               
Safe Trails  [proposed restrictions]  to school property  and the                                                               
Crevasse Moraine  Trail; however,  there were "amendments  to the                                                               
bill" [document not provided] because  the bill as written "would                                                               
make you an  outlaw to go to  a school with a trap  in your truck                                                               
...."   Another amendment  was to limit  the restrictions  on the                                                               
Crevasse   Moraine  Trail,   because  the   definition  of   "any                                                               
maintained trail in the borough" is too vague.                                                                                  
                                                                                                                                
REPRESENTATIVE RAUSCHER  asked where  to find statistics  on dogs                                                               
and people caught in traps.                                                                                                     
                                                                                                                                
MR. BARBER said he did not know.                                                                                                
                                                                                                                                
2:43:42 PM                                                                                                                    
                                                                                                                                
ALYSON PYTTE said she  is a dog owner and a  daily user of public                                                               
trails.   She thanked the sponsor  of the bill, and  trappers who                                                               
trap at  a safe distance  from public  trails.  Like  others, she                                                               
lets her  dog off leash and  is concerned about her  dogs getting                                                               
caught  in  a  trap,  and   avoids  areas  where  incidents  have                                                               
occurred.     Ms.  Pytte  spoke  of   previous  legislation  that                                                               
addressed  the  wellbeing  of pets  in  custody  disputes,  which                                                               
supports  the modern  view that  pets are  part of  one's family.                                                               
She opined  there is  broad public  support for  the restrictions                                                               
written  in HB  40,  and suggested  a  similar ballot  initiative                                                               
would pass  if there  is continued  inaction by  the legislature.                                                               
The  bill  proposes minimal  burdens  on  trappers and  helps  by                                                               
providing  guidance on  the placement  of traps.   She  urged the                                                               
committee to  improve the bill  by making the  following changes:                                                               
include  public trails  in  state game  refuges,  on state  land,                                                               
municipal land, and  federal refuges and parks;  require traps to                                                               
be tagged; increase the distance to 500 feet.                                                                                   
                                                                                                                                
2:47:09 PM                                                                                                                    
                                                                                                                                
JONATHAN  ZEPPA,   representing  the  Alaska   Frontier  Trappers                                                               
Association,  Inc.,   said  his   organization  is   a  statewide                                                               
organization with  a majority  of members  who reside  within the                                                               
Mat-Su  valley.    Alaska Frontier  Trappers  Association,  Inc.,                                                               
recognizes  change   is  needed  to  minimize   conflict  between                                                               
trapping and  other recreational users  with dogs in  or adjacent                                                               
to  semi-urban areas.    However, the  change  must come  through                                                               
local authorities,  as the conflict  is restricted  to population                                                               
centers.   Although  boroughs differ  throughout  the state,  the                                                               
Mat-Su Borough  has drafted legislation  for school  campuses and                                                               
the Crevasse  Moraine Trail system  which has not  been presented                                                               
to the assembly,  and his organization has  proposed working with                                                               
the  borough fish  and wildlife  commission to  develop realistic                                                               
requirements  and   a  mapped  urban  trapping   management  area                                                               
proposal  to  submit  to  BOG.  He  opined  BOG  will  appreciate                                                               
recommendations  from a  trappers'  association  in this  regard.                                                               
Turning to  risk, he said  in the  Mat-Su valley almost  all dogs                                                               
caught  are  off  leash  in   violation  of  leash  laws  and  he                                                               
questioned the  lack of risk  statistics in support of  the bill.                                                               
In fact,  the risk  to dogs  and people from  other dogs  is much                                                               
greater.  Mr. Zeppa said the risk  to people from traps is so low                                                               
statistics are not maintained by  health organizations in Alaska;                                                               
however,  3.9 people  per 100,000  have  been hospitalized  after                                                               
suffering  dog bites  in  Alaska  during a  10-year  period.   He                                                               
opined evidence  supports trapping  is not dangerous.   Regarding                                                               
enforcement,  he said  there are  thousands of  miles of  Revised                                                               
Statute 2477 (RS  2477) trails maintained by the  state, that are                                                               
not surveyed,  and questioned how  to measure 200  feet; further,                                                               
trails change,  therefore law  enforcement is  impossible without                                                               
surveys and  maps.  He  summarized, saying  the issue is  a local                                                               
matter and  to prohibit  all trapping within  200 feet  is unfair                                                               
and prejudiced against trapping.                                                                                                
                                                                                                                                
REPRESENTATIVE  PARISH requested  a copy  of the  pertinent draft                                                               
regulations from the Mat-Su Borough.                                                                                            
                                                                                                                                
2:53:20 PM                                                                                                                    
                                                                                                                                
MARK LUTRELL  expressed support for  HB 40 which  is common-sense                                                               
protection of family members  without significant restrictions on                                                               
trappers.    The entire  community  including  trappers and  non-                                                               
trappers, families, residents,  visitors, tourists, and companion                                                               
animals will benefit from added  safety during activities without                                                               
the threat and  fear of traps.  He related  a personal experience                                                               
of finding  a dog  caught in  a trap  on a  trail, and  said dogs                                                               
should be allowed to romp and run.   Mr. Lutrell said the bill is                                                               
not anti-trapping, but is a  "very minor inconvenience," and good                                                               
for the trapping  community's reputation.  He  expressed his hope                                                               
the committee would support the bill.                                                                                           
                                                                                                                                
2:56:10 PM                                                                                                                    
                                                                                                                                
ROBERT  MATHEWS,  speaking  on  behalf of  the  Delta  Sportsmans                                                               
Association  Inc., informed  the committee  the association  does                                                               
not support  the bill, as the  bill appears to relate  to a local                                                               
issue that  needs to  be addressed through  the borough  and city                                                               
assemblies.   The issue has  been studied  by BOG and  brought to                                                               
its attention, but there was no  consensus in regard to action on                                                               
this issue.   He  restated the  Delta Sportsmans  Association has                                                               
about 250 members who do not support bill.                                                                                      
                                                                                                                                
CO-CHAIR JOSEPHSON  understood there  is a community  of trappers                                                               
in Delta  Junction that may  support a compromise version  of the                                                               
bill.                                                                                                                           
                                                                                                                                
MR. MATHEWS  said no, the trappers  he spoke with do  not support                                                               
the  200-feet   restriction,  tagging,   the  measurement   of  a                                                               
meandering trail, or the definition of a trail.                                                                                 
                                                                                                                                
2:58:04 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  JOSEPHSON announced  HB 40  was held  over with  public                                                               
testimony open.                                                                                                                 
                                                                                                                                
        HB 111-OIL & GAS PRODUCTION TAX;PAYMENTS;CREDITS                                                                    
                                                                                                                                
2:58:24 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  JOSEPHSON announced  that the  final order  of business                                                               
would be HOUSE BILL NO. 111, "An  Act relating to the oil and gas                                                               
production tax,  tax payments, and credits;  relating to interest                                                               
applicable  to  delinquent  oil   and  gas  production  tax;  and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
[Although stated  on the recording Co-Chair  Josephson handed the                                                               
gavel to Co-Chair Tarr, Co-Chair Josephson retained the gavel.]                                                                 
                                                                                                                                
REPRESENTATIVE BIRCH referred  to HB 111 and  asked whether there                                                               
is a  signed signature sheet to  advance the bill as  a committee                                                               
bill.                                                                                                                           
                                                                                                                                
CO-CHAIR TARR said the matter was dealt with on the House floor.                                                                
                                                                                                                                
REPRESENTATIVE  BIRCH restated  his  request for  a  copy of  the                                                               
signature  sheet,  noting  that  five signatures  would  imply  a                                                               
majority but his concern centers on consensus.                                                                                  
                                                                                                                                
CO-CHAIR TARR  said a copy could  be provided.  She  informed the                                                               
committee  there would  be  a  brief introduction  of  HB 111  to                                                               
provide the  committee with an  opportunity to preview  the bill,                                                               
and have ample time to prepare for hearings next week.                                                                          
                                                                                                                                
REPRESENTATIVE  JOHNSON read  from  a  document provided  1/18/17                                                               
entitled  House  Resources   Bill  Hearing  Request  Requirements                                                               
[document not  provided], and inquired  as to whether there  is a                                                               
bill packet available in order  for the committee to follow along                                                               
during the introduction of the bill.                                                                                            
                                                                                                                                
CO-CHAIR TARR  stated the committee  would not be working  on the                                                               
bill today,  the intent  of the  introduction of  the bill  is to                                                               
provide  the committee  several days  to  review the  bill.   She                                                               
related her  previous experience in  this regard and  advised all                                                               
materials  will  be available  online  to  the committee  and  to                                                               
members of the public.                                                                                                          
                                                                                                                                
REPRESENTATIVE JOHNSON remarked:                                                                                                
                                                                                                                                
     I object because  what we were given  in the memorandum                                                                    
     regarding   the,  a,   discussion   of  scheduling   in                                                                    
     committee [has] not been met.                                                                                              
                                                                                                                                
3:02:43 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  TARR advised  it is  the  prerogative of  the chair  to                                                               
schedule and  introduce bills.   Directing  attention to  HB 111,                                                               
she listed  the major features of  the bill as follows:   reduces                                                               
the net  operating losses from  35 percent to 15  percent; limits                                                               
the  abilities  of companies  to  earn  net operating  losses  to                                                               
companies producing  less than 15,000  barrels per day;  caps the                                                               
annual to  35 million from  70 million; limits  repurchases after                                                               
2018; raises  the minimum  tax from  4 percent  to 5  percent and                                                               
hardens the floor; addresses the  interest rate; reduces the per-                                                               
barrel credit.                                                                                                                  
                                                                                                                                
[HB 111 was held over]                                                                                                          
                                                                                                                                
REPRESENTATIVE RAUSCHER said  there was some confusion  as to who                                                               
was responding  as the chair  and who  was giving testimony.   In                                                               
response  to Co-Chair  Josephson's request  for clarification  of                                                               
his question, he stated:                                                                                                        
                                                                                                                                
     If she was giving testimony  and you were the chair and                                                                    
     she  was  talking  through  the  chair  on  the  actual                                                                    
     process, she  answered about the  process.  I  was just                                                                    
     wondering, does the chair, which  you were at the time,                                                                    
     agree with that process.  That's all.                                                                                      
                                                                                                                                
CO-CHAIR  JOSEPHSON opined  the  ruling of  the  [Speaker of  the                                                               
House  of Representatives,  Alaska  State Legislature  (Speaker)]                                                               
was proper  and under  the pertinent  statute, when  five members                                                               
sign a request for a  committee bill, the committee can entertain                                                               
that bill.   He said the committee would recess  until 6:00 p.m.,                                                               
to continue hearing public testimony on HJR 5 and HB 40.                                                                        
                                                                                                                                
REPRESENTATIVE  BIRCH  asked who  has  a  copy of  the  signature                                                               
sheet.                                                                                                                          
                                                                                                                                
CO-CHAIR JOSEPHSON expressed his belief the Speaker has a copy.                                                                 
                                                                                                                                
REPRESENTATIVE BIRCH responded:                                                                                                 
                                                                                                                                
     He did not  when we asked earlier.  ...   Is that where                                                                    
     it's supposed to reside?  And again, it's not knowing.                                                                     
                                                                                                                                
CO-CHAIR JOSEPHSON deferred to Co-Chair Tarr.                                                                                   
                                                                                                                                
CO-CHAIR TARR assured the committee  the co-chairs will provide a                                                               
copy, and said a copy was provided to the Speaker this date.                                                                    
                                                                                                                                
REPRESENTATIVE BIRCH  asked Co-Chair Josephson to  provide a copy                                                               
of the signature sheet at the 6:00 p.m. meeting.                                                                                
                                                                                                                                
                                                                                                                                
3:06:09 PM                                                                                                                    
                                                                                                                                
[Although on the audio recording  Co-Chair Josephson misspoke and                                                               
adjourned the meeting,  at timestamp 3:05:05 p.m.,  he stated his                                                               
intent to recess the meeting to 6:00 p.m., 2/8/17.]                                                                             
                                                                                                                                
The House  Resources Standing Committee meeting  was [recessed to                                                               
6:00 p.m., 2/8/17.]                                                                                                             
                                                                                                                                
6:04:40 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOSEPHSON called the  House Resources Standing Committee                                                               
meeting back to  order.  [Present at the call  back to order were                                                               
Representatives  Josephson, Talerico,  Drummond, Birch,  Johnson,                                                               
Rauscher,  and  Tarr.    Representative  Parish  arrived  as  the                                                               
meeting was  in progress.  Attendance  can be heard on  the audio                                                               
recording at timestamp 6:16:45 p.m.]                                                                                            
                                                                                                                                
REPRESENTATIVE   JOHNSON  questioned   whether  the   1:00  p.m.,                                                               
[2/8/17] meeting was adjourned or recessed.                                                                                     
                                                                                                                                
6:04:51 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  JOSEPHSON  answered  the  meeting  was  recessed.    He                                                               
remarked:                                                                                                                       
                                                                                                                                
     I think  part of the  frustration I heard from  some of                                                                    
     the  members,  is with  the  ruling  of the  [House  of                                                                    
     Representatives, Alaska  State Legislature]  floor, and                                                                    
     what  happened  on the  floor  and  that the  Speaker's                                                                    
     ruling was affirmed.  The  bill that was transmitted to                                                                    
     us is like  any other bill, although  a committee bill,                                                                    
     it is fully  before us in every respect.   It is, it is                                                                    
     a  committee substitute  like any  committee substitute                                                                    
     and  I  want  to  mention something  else:    committee                                                                    
     substitutes are not crafted  generally, I've never seen                                                                    
     it,  with the  consensus  of  the committee's  members.                                                                    
     That is not  the process and in fact, I  just talked to                                                                    
     a former co-chairman of finance  in the other body, who                                                                    
     said, "Often,  we had a  committee substitute  that the                                                                    
     members  had never  seen, including  majority members."                                                                    
     ...    The  second  matter  is  relative  to  the  five                                                                    
     signatures, you asked for the  five signatures, I think                                                                    
     you're entitled  to that.   I'm not  the keeper  of the                                                                    
     five  signatures, I  saw it  on the  Speaker's dais,  I                                                                    
     would go  look there for  it.  Ms. Johnson,  you talked                                                                    
     about the memorandum, and whether  we complied with the                                                                    
     memorandum.   The memorandum in question  ... refers to                                                                    
     prime sponsors,  sponsor statements, and the  like.  It                                                                    
     is, it is clearly for  a personal piece of legislation,                                                                    
     not a committee piece of legislation ....                                                                                  
                                                                                                                                
6:07:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BIRCH acknowledged he received a copy of the                                                                     
signatures on a memo dated 2/6/17.  He remarked:                                                                                
                                                                                                                                
     I  believe we  met on  February sixth,  last, and  five                                                                    
     people are named  on here with signatures,  so I guess,                                                                    
     my  question  is ...  was  this  discussed on  February                                                                    
     sixth and  just purposely  avoided any  discussion when                                                                    
     we last  met as a  committee, and  if so was  this, was                                                                    
     this  done in  secret?    ...   At  least there's  four                                                                    
     members of this body  that weren't involved on February                                                                    
     sixth when this was circulated  and discussed.  ...  In                                                                    
     the interest  of transparency  and equity  and process,                                                                    
     ... it seems to me  like if, if everybody's circulating                                                                    
     HB 111  ... it seem[s] like  we would've had a  look at                                                                    
     it on February sixth, when this memo was dated.                                                                            
                                                                                                                                
CO-CHAIR JOSEPHSON restated that committee substitutes are not                                                                  
vetted through committee members and the matter was dealt with                                                                  
on the floor.                                                                                                                   
                                                                                                                                
6:08:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON stated:                                                                                                  
                                                                                                                                
     ... one  of the things that  I feel at a  loss with ...                                                                    
     as a freshman, I don't  know what the procedures are, I                                                                    
     just go  by what I  see in  Mason's Manual or  what ...                                                                    
     the rules  that are  actually out there.   So,  I just,                                                                    
     just want to  remind you that us  freshmen that haven't                                                                    
     been here,  that have not  seen what happened  in other                                                                    
      places, we just really don't know, we're just trying                                                                      
     to make sure that we follow the rules.                                                                                     
                                                                                                                                
CO-CHAIR JOSEPHSON invited further public testimony on HB 40.                                                                   
                                                                                                                                
6:09:59 PM                                                                                                                    
                                                                                                                                
JAMES  SQUYRES  said  he  lives  in  a  rural  area  deep  in  an                                                               
unorganized borough  and supports portions  of the bill,  but not                                                               
all  of the  bill.   He cautioned  against the  bill becoming  an                                                               
anti-trapping bill.  In the  area where he lives, "real trappers"                                                               
have  cut  over  150  miles  of  sourdough  trails  deep  in  the                                                               
wilderness, but there  are others who trap in  the road right-of-                                                               
way.  A concern in his  neighborhood is a recreational trail that                                                               
has traps 15 feet to 20 feet off  of the road against the edge of                                                               
the trail.   Mr. Squyres has been warned not  to spring or remove                                                               
traps,  but  he does  spring  and  remove  traps on  his  posted,                                                               
private  land.   He  said he  supports the  portion  of the  bill                                                               
related  to recreational  trails, however,  he advised  that many                                                               
state,  unmaintained  roads  that are  privately  maintained  for                                                               
private  land access  are often  narrower than  the right-of-way,                                                               
and "lazy  trappers" place  traps on  the road  right-of-way next                                                               
to,  but  not  on,  private  land.    In  winter,  the  privately                                                               
maintained  state roads  are  used for  skiing  and snow  machine                                                               
riders, putting users at risk.   He urged for an amendment to the                                                               
bill, adding  "or road" on line  11, page 2, of  Version U, which                                                               
would  then read,  "public trail  or road  developed or  improved                                                               
with  public  funds."    Mr.  Squyres said  he  opposes  the  tag                                                               
requirements  because  real  trappers   set  traps  deep  in  the                                                               
wilderness;  if  the  bill makes  traps  on  recreational  trails                                                               
illegal,  they could  simply be  removed by  law enforcement  and                                                               
avoid increasing the size and scope of government.                                                                              
                                                                                                                                
6:13:50 PM                                                                                                                    
                                                                                                                                
DAN DUNAWAY  informed the  committee he was  speaking on  his own                                                               
behalf  and  said  he  is  a  member  of  the  Nushagak  Advisory                                                               
Committee, Alaska Department of Fish  & Game, and the Bristol Bay                                                               
Federal  Subsistence Regional  Advisory  Council,  U.S. Fish  and                                                               
Wildlife Service,  U.S. Department of  the Interior.   He related                                                               
the  Nushagak Advisory  Committee addressed  similar issues  last                                                               
year.   He and  others are generally  opposed to  regulations for                                                               
trap  tags   and  believe   the  issues   are  best   handled  by                                                               
municipalities, as there are unique  situations in each area.  It                                                               
is difficult  to determine the  distance from trails  and whether                                                               
trails are public, and he expressed his opposition to the bill.                                                                 
                                                                                                                                
REPRESENTATIVE  BIRCH  asked  whether   there  is  any  merit  to                                                               
addressing   this  issue   with  a   local  preference   so  that                                                               
regulations focused on the Anchorage  area would not affect those                                                               
in Dillingham, Kotzebue, or other rural communities.                                                                            
                                                                                                                                
MR. DUNAWAY  opined that would  be better.   He also  pointed out                                                               
the city  has asked  him to  trap nuisance  beaver in  areas that                                                               
would be proscribed by the bill.                                                                                                
                                                                                                                                
6:16:50 PM                                                                                                                    
                                                                                                                                
DAN BOYD,  speaking in favor  of HB 40,  said he is  a Dillingham                                                               
resident.    He  said  he   has  personal  experience  with  some                                                               
unethical trappers.   This winter,  in the Dillingham  small boat                                                               
harbor and  park with playground equipment,  an unethical trapper                                                               
set a snare trap which caught a  dog.  There have also been fatal                                                               
instances with  traps set along  road rights-of-way.  He  said he                                                               
favored regulations concerning trapping  and that require tags on                                                               
traps with a  number.  Mr. Boyd also supports  local control, but                                                               
in Dillingham  there is no  municipal ordinance  against trapping                                                               
anywhere in the city.                                                                                                           
                                                                                                                                
6:19:07 PM                                                                                                                    
                                                                                                                                
ASHLEY  STRAUCH disclosed  she is  staff to  Representative Scott                                                               
Kawasaki, Alaska State Legislature, and  is testifying on her own                                                               
behalf.  She related a personal  experience when 13 years ago her                                                               
dog  was killed  by a  trap  set 150  feet from  the entrance  to                                                               
Chugach State  Park.  Now  she lives  with constant fear  for her                                                               
dog in  the wilderness  in Fairbanks on  designated trails.   She                                                               
acknowledged  this is  a sensitive  issue  but a  balance can  be                                                               
struck between the interests of  trappers and recreational users.                                                               
There  are responsible  trappers who  support the  bill; however,                                                               
without a  solution by the legislature,  incidents will continue.                                                               
Ms. Strauch pointed out an  identification tag on a conibear trap                                                               
will  not affect  the  outcome of  an  incident because  conibear                                                               
traps kill  instantly.  She  said this  is a statewide  issue and                                                               
the committee should consider all users of land.                                                                                
                                                                                                                                
REPRESENTATIVE BIRCH asked whether the  incident with her dog was                                                               
near Chugach State Park.                                                                                                        
                                                                                                                                
MS. STRAUCH said  the incident occurred near  Anchorage in Arctic                                                               
Valley at  the trailhead where  there was an illegally  set trap.                                                               
She  has heard  trappers are  concerned  traps can  be traced  to                                                               
owners  by a  member of  the public,  and suggested  ADF&G should                                                               
keep  trappers'   names  confidential,  thereby   preventing  any                                                               
possible  harassment.    In further  response  to  Representative                                                               
Birch, she said  without a tag on the trap,  her family could not                                                               
prove who set the trap illegally.                                                                                               
                                                                                                                                
6:25:12 PM                                                                                                                    
                                                                                                                                
The committee took an at ease from 6:25 p.m. to 6:33 p.m.                                                                       
                                                                                                                                
6:33:03 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOSEPHSON resumed public testimony on HB 40.                                                                           
                                                                                                                                
6:33:25 PM                                                                                                                    
                                                                                                                                
LINDA DEFOLIART  stated she  served on  the Fairbanks  North Star                                                               
Borough Trails Advisory  Commission for a few  years and whenever                                                               
this issue  arose, a  member of  the Alaska  Trappers Association                                                               
would attend  the meeting.  She  said a person walking  a dog off                                                               
leash far from a  trail can be fined $100, but  a trapper can put                                                               
a trap  on a  trail to  a cabin in  the White  Mountains National                                                               
Recreation Area and is within  his/her legal rights.  A trapper's                                                               
response to the advisory committee,  in regard to restricting the                                                               
placement of  traps, is  that responsible  trappers do  not place                                                               
traps  inappropriately, but  not  all  trappers are  responsible.                                                               
Ms. DeFoliart said she  knew of two dogs in a  dog team that were                                                               
caught, and opined  a person walking or mushing a  dog on a leash                                                               
on  a major  trail should  not have  to worry  about a  member of                                                               
their party stepping in a trap.                                                                                                 
                                                                                                                                
6:34:40 PM                                                                                                                    
                                                                                                                                
KERI PETERSON  told of  her friends'  anguish because  their dogs                                                               
were injured  or killed by traps.   She recommended that  all who                                                               
walk on a trail carry heavy-duty wire cutters and gauze.                                                                        
                                                                                                                                
6:35:36 PM                                                                                                                    
                                                                                                                                
PAMELA GOODE informed  the committee many people  in rural Alaska                                                               
are unable to listen to  the House [floor sessions] because there                                                               
is no teleconference  line, although there is one  in the Senate.                                                               
She said  she is  from the Interior  and is opposed  to HB  40 as                                                               
written, although she strongly  supports protecting public trails                                                               
from traps.   However, if  no one is  harmed, the trap  should be                                                               
removed with no fine or jail  time for the trapper.  In addition,                                                               
trapping  is part  of Alaska's  heritage and  it is  important to                                                               
protect  trappers, and  the many  miles  of trap  lines into  the                                                               
wilderness,  from  bureaucracy.     She  cautioned  that  "trails                                                               
associations"  may be  anti-trap  people; in  fact, trappers  cut                                                               
fine  trails  through the  wilderness  and  over time  the  trail                                                               
becomes a  public trail, thus  trappers should be  protected from                                                               
others  using their  trails.   Ms. Goode  explained trappers  put                                                               
traps in  the middle  of their trails  for efficiency.   Finally,                                                               
requiring  trap  tags is  burdensome  for  trappers, expands  the                                                               
scope  of government,  and is  state  overreach.   She urged  the                                                               
committee to make appropriate amendments to the bill.                                                                           
                                                                                                                                
REPRESENTATIVE JOHNSON  asked whether  the fiscal  note pertinent                                                               
to the cost of tags on traps was available.                                                                                     
                                                                                                                                
CO-CHAIR  JOSEPHSON advised  the  fiscal note  is  posted on  the                                                               
legislative  Bill Action  Status Inquiry  System (BASIS),  and he                                                               
will provide additional copies to the committee.                                                                                
                                                                                                                                
REPRESENTATIVE RAUSCHER  asked Ms. Goode to  propose an amendment                                                               
to improve the bill.                                                                                                            
                                                                                                                                
CO-CHAIR JOSEPHSON posed a defense  that the trail in question is                                                               
historically a trapping  trail and not a public  trail, and asked                                                               
whether that  would change Ms.  Goode's position on  that portion                                                               
of the bill.                                                                                                                    
                                                                                                                                
MS.  GOODE observed  there  are many  trails  in the  unorganized                                                               
borough put in place by trappers,  and was unsure how to identify                                                               
each.  Also, trappers are unaware  of new legislation and need to                                                               
be informed.                                                                                                                    
                                                                                                                                
REPRESENTATIVE PARISH questioned if  the definition of trails was                                                               
narrowed  to those  with  a gravel  top  would exclude  trappers'                                                               
trails and their trap lines.                                                                                                    
                                                                                                                                
MS. GOODE  said it should.   For  example, there is  a well-known                                                               
trail  in the  unorganized  borough that  is  publicized and  has                                                               
signage, which would be sufficient.                                                                                             
                                                                                                                                
6:44:08 PM                                                                                                                    
                                                                                                                                
MS.  GOODE, in  response  to Co-Chair  Josephson, identified  the                                                               
aforementioned trail  as the Craig  Lake Trail, which has  a trap                                                               
in the  middle of  the trail.   In  further response  to Co-Chair                                                               
Josephson, she said  she would not object to  a 200-foot "buffer"                                                               
for the Craig Lake Trail, a public trail.                                                                                       
                                                                                                                                
REPRESENTATIVE RAUSCHER  asked whether lesser footage  would be a                                                               
solution.                                                                                                                       
                                                                                                                                
MS. GOODE said she did not believe so.                                                                                          
                                                                                                                                
6:45:30 PM                                                                                                                    
                                                                                                                                
RICHARD PERSON said  he is a lifelong Alaskan who  is a member of                                                               
the  Alaska  Trappers  Association  (ATA), speaking  on  his  own                                                               
behalf.  Mr. Person expressed his  opposition to HB 40 because it                                                               
pertains to  issues that should  be addressed by  local entities.                                                               
As a member  of the Southcentral Chapter of ATA,  he has personal                                                               
experience attempting  to address  the conflict  between trappers                                                               
and pet  owners in the  Mat-Su and  Kenai Peninsula areas.   Both                                                               
trappers and  pet owners must  be educated, and ATA  has produced                                                               
shared trails  DVDs to explain  how traps  work and how  to avoid                                                               
them.   Also, ATA gives workshops  and produced with ADF&G  a pet                                                               
safety  brochure, as  ATA seriously  seeks a  resolution to  this                                                               
issue.  At  high-use areas and on multi-use  trails, ATA provides                                                               
signage asking  trappers to avoid  sets that will  cause conflict                                                               
with other trail users, and asking  dog owners to keep their dogs                                                               
close  and  on  a  leash.     There  is  also  a  public  service                                                               
announcement   broadcast   by  Anchorage   television   stations.                                                               
Currently,  Mr. Person  said ATA  is trying  to set  up voluntary                                                               
trap-free areas including Crevasse  Moraine, Government Peak, and                                                               
West Trail Butte  System, but is being stonewalled  by the Mat-Su                                                               
Borough Assembly.                                                                                                               
                                                                                                                                
REPRESENTATIVE   JOHNSON   asked   for   more   information   and                                                               
clarification on Mr. Person's comment about being stonewalled.                                                                  
                                                                                                                                
MR. PERSON  said over the  past two  years, ATA has  attempted to                                                               
create  voluntarily  trap-free  areas where  signage  discourages                                                               
trapping,  but  interest  in  this  proposal  stops  with  Mat-Su                                                               
Borough staff,  and the  proposal has not  been presented  to the                                                               
assembly.    Mr.  Person  opined   the  assembly  may  have  been                                                               
influenced  by legislation  supported by  Alaska Safe  Trails; in                                                               
fact, if ATA's proposal had  remained on schedule, some incidents                                                               
may have been avoided.                                                                                                          
                                                                                                                                
REPRESENTATIVE JOHNSON asked Mr.  Person to provide any pertinent                                                               
written proposals that might be  in progress in the Mat-Su valley                                                               
area.                                                                                                                           
                                                                                                                                
6:51:05 PM                                                                                                                    
                                                                                                                                
TOM LESSARD said he is opposed to  HB 40 because the issue is not                                                               
a public  safety issue, and  his nationwide research shows  it is                                                               
extremely rare  for a person  to get injured in  a trap.   On the                                                               
other  hand, bear  baiting is  a legitimate  public safety  issue                                                               
because one could come upon a  bear, thus bear baiting sites have                                                               
existing setback rules.   He opined the best  solutions are found                                                               
at a  local level,  such as  designated dog  parks and  trap free                                                               
zones  that  clearly have  parameters.    He was  negotiating  in                                                               
Cooper Landing  last winter  with non-trappers,  but after  HB 40                                                               
was  introduced  the  meetings   were  discontinued.    Regarding                                                               
setbacks,  in mountainous  areas a  200-foot setback  may send  a                                                               
trapper up  a mountain or down  in a canyon.   Further, dogs will                                                               
get caught beyond the setback.                                                                                                  
                                                                                                                                
6:54:10 PM                                                                                                                    
                                                                                                                                
LYNN KEOGH said  he is a lifelong  Alaskan opposed to HB  40.  He                                                               
is  working  with ADF&G,  providing  a  mail-out to  over  28,000                                                               
licensed trappers,  which is a  much higher number  than previous                                                               
testimony indicting  there were  2,500 to  3,000 trappers  in the                                                               
state.  Because this issue is  often portrayed as a public safety                                                               
issue  to  BOG, he  contacted  the  Department of  Public  Safety                                                               
(DPS), but DPS has  no record of a person injured by  a trap.  He                                                               
opined this  is a localized issue  and should be dealt  with on a                                                               
local level  by boroughs  and assemblies.   Regarding  trails, he                                                               
asked the committee  to consider many trail  systems meander over                                                               
time,  so  the law  would  be  unenforceable unless  trails  were                                                               
surveyed.   Mr. Keogh opined  a 200-foot closure  is unnecessary;                                                               
there may  be certain  trails that  should be  closed to  open or                                                               
ground  sets,  but there  is  no  risk  to pets  for  underwater,                                                               
elevated, or enclosed trap sets.                                                                                                
                                                                                                                                
6:57:01 PM                                                                                                                    
                                                                                                                                
AL BARRETTE  said he is  opposed to HB  40 because the  bill does                                                               
not address the issue, but  shifts the responsibility for the pet                                                               
owner's negligence from  pet owners to the trapper.   His 40-mile                                                               
trap  line,  on  a  state-maintained RS  2477  right-of-way,  has                                                               
approximately 200  trap sites.   If the  bill is enacted,  a 200-                                                               
foot setback would add 16 miles  to his trap line which currently                                                               
takes 10  hours to check.   An additional 16 walking  miles would                                                               
add 5.3  hours to his time  checking traps.  He  pointed out that                                                               
those under 18  years-of-age are not required to  have a license,                                                               
and the bill would not require them  to have trap tags.  Also, if                                                               
trappers  have partners,  traps would  need multiple  tags.   Mr.                                                               
Barrette said  a medical  situation caused him  to have  a friend                                                               
run his trap line and - under the  terms of the bill - his friend                                                               
would have  had to obtain 500-750  tags to lawfully run  his trap                                                               
line.     He  spoke  of   "trap  line  adventures"   which  offer                                                               
experiences to  non-Alaskans and  who would  also be  required to                                                               
have additional tags.  He inquired  as to whether ADF&G will have                                                               
a sufficient number of unique  tags for traps, and questioned the                                                               
justification  for  the  punitive  measures in  the  bill.    Mr.                                                               
Barrette concluded is  difficult to measure a  braided trail, and                                                               
trappers may not  be sufficiently physically fit to  walk off the                                                               
trail and set their traps.                                                                                                      
                                                                                                                                
CO-CHAIR JOSEPHSON asked whether Mr. Barrette served on BOG.                                                                    
                                                                                                                                
7:00:14 PM                                                                                                                    
                                                                                                                                
MR. BARRETTE  said yes.   He then advised two  Alaska regulations                                                               
within [5  Alaska Administrative Code 92.029]  prohibit releasing                                                               
a dog  into the  wild and  BOG may remove  "from the  clean list"                                                               
dogs if there  is a predominance of evidence that  the species is                                                               
capable of  surviving in the  wild, and  is capable of  causing a                                                               
genetic  alteration  of a  species  indigenous  to Alaska.    Mr.                                                               
Barrette  pointed out  dogs make  hybrid wolves  or hybrid  dogs,                                                               
thus dog  owners could be  required by BOG  to have a  permit and                                                               
keep dogs leashed at all times.                                                                                                 
                                                                                                                                
REPRESENTATIVE JOHNSON pointed out HB  40 has a zero fiscal note,                                                               
although the bill includes registering traps and issuing tags.                                                                  
                                                                                                                                
CO-CHAIR JOSEPHSON said  under the bill people would  pay for the                                                               
registration  of traps.   In  further response  to Representative                                                               
Johnson, he said fiscal notes  are brought forward by departments                                                               
that are  impacted by  bills.  Speaking  from his  experience, he                                                               
said  the  court system  may  attach  a  fiscal  note to  a  bill                                                               
referred  to   the  House  Judiciary  Standing   Committee.    He                                                               
remarked:                                                                                                                       
                                                                                                                                
     ...  they don't  necessarily come  when you  need them.                                                                    
     ...  Generally the  departments, when they track bills,                                                                    
     and they say,  "that one's going to a  hearing, we need                                                                    
     a fiscal  note," that's  the general  policy ....   So,                                                                    
     there could be other fiscal notes coming ....                                                                              
                                                                                                                                
7:02:07 PM                                                                                                                    
                                                                                                                                
[HB 40 was held over with public testimony open.]                                                                               
                                                                                                                                
         HJR  5-ENDORSING ANWR LEASING; RELATED ISSUES                                                                      
                                                                                                                                
7:02:40 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  JOSEPHSON announced  that the  final order  of business                                                               
would be  CS FOR  HOUSE JOINT RESOLUTION  NO. 5(AET),  Urging the                                                               
United States  Congress to pass  legislation to open  the coastal                                                               
plain  of the  Arctic National  Wildlife  Refuge to  oil and  gas                                                               
development; urging the United States  Department of the Interior                                                               
to recognize  the private  property rights of  owners of  land in                                                               
and adjacent to the Arctic  National Wildlife Refuge; relating to                                                               
oil and gas exploration,  development, production, and royalties;                                                               
and relating to renewable and alternative energy technologies.                                                                  
                                                                                                                                
7:02:48 PM                                                                                                                    
                                                                                                                                
MIKE SATRE expressed his support of  HJR 5, and urged the opening                                                               
of leasing  and oil  and gas development  in the  Arctic National                                                               
Wildlife  Refuge   (ANWR).    He   said  Alaskans   and  previous                                                               
legislatures have historically supported  this action.  Mr. Satre                                                               
explained the  resolution does not  open all  of ANWR to  oil and                                                               
gas development, but does open  approximately 0.01 percent of the                                                               
refuge close to existing development  on the North Slope.  Alaska                                                               
has a history of responsibly  developing oil and gas resources in                                                               
that  area,  and can  leverage  the  existing infrastructure,  in                                                               
order to  provide oil  and gas  for the  decades of  world demand                                                               
ahead.    Alaska's future  depends  upon  increased oil  and  gas                                                               
development  on state  and  federal lands.    Taxing a  declining                                                               
resource  will not  provide fiscal  stability  because the  state                                                               
needs more oil  in the Trans-Alaska Pipeline System.   This issue                                                               
is  critical  to  his  family's  future.   Mr.  Satre  urged  the                                                               
committee to expeditiously pass the resolution.                                                                                 
                                                                                                                                
7:05:26 PM                                                                                                                    
                                                                                                                                
FRANK  BERGSTROM  provided  a  brief   description  of  his  many                                                               
positive experiences  on the North  Slope and said he  intends to                                                               
return.  Alaska  needs ANWR's oil, and the magnitude  of [oil and                                                               
gas] development there is minimal; in  fact, it is known it would                                                               
take only  2,000 acres to recover  all of the oil  located there.                                                               
He  said there  is  no unmanageable  downside  to the  thoughtful                                                               
development  of  ANWR.    At  [Prudhoe Bay],  one  sees  a  large                                                               
industrial plant:   the footprint of development is  small.  This                                                               
is a  wonderful opportunity  and he  encouraged the  committee to                                                               
support the development of ANWR.                                                                                                
                                                                                                                                
7:07:24 PM                                                                                                                    
                                                                                                                                
JULIA  YORK informed  the committee  she was  born and  raised in                                                               
Fairbanks and holds  a master's degree in biology.   She said she                                                               
is aware  of the  state's budget  crisis as  her family  has been                                                               
affected, but the crisis is  occurring because the state has been                                                               
dependent upon oil revenue for too  long; it is time to invest in                                                               
a more reliable  future for Alaska.  The bill  is financially and                                                               
environmentally irresponsible  and is based on  outdated polling.                                                               
In fact,  oil development  cannot be  done in  an environmentally                                                               
responsible manner on the tundra.   Ms. York said she has been to                                                               
the North  Slope oil fields  and advised that restoration  by oil                                                               
companies after spills  and disturbance is measured  by "how much                                                               
area is green," which is achieved  by planting grass.  She opined                                                               
this  is  a   misunderstanding  of  the  coastal   plain  and  is                                                               
misleading; furthermore,  the testimony  of oil  companies should                                                               
be discounted  as they  have a direct  financial incentive.   Ms.                                                               
York said  this is not  a matter of 2,000  acres of land,  but of                                                               
wide-reaching  and permanent  effects on  a sensitive  ecosystem,                                                               
including  multiplying  the  effect   of  climate  change.    She                                                               
concluded that villages are in imminent danger.                                                                                 
                                                                                                                                
7:11:08 PM                                                                                                                    
                                                                                                                                
STEVEN GREENLAW  said he has lived  in Alaska for four  years and                                                               
is a  student at the University  of Alaska Fairbanks.   He stated                                                               
there  is  a moral  imperative  to  protecting ANWR  because  the                                                               
dignity of the  human person is tied to the  land, and opening up                                                               
the area for  oil development would be a  shortsighted and short-                                                               
term benefit  for a  few.   Further, there is  an urgent  need to                                                               
substitute  renewable  resources  for  fossil fuels,  for  a  new                                                               
economy in  Alaska that values  its indigenous voices  and lives.                                                               
Mr. Greenlaw  urged the  co-chairs to consider  the dignity  of a                                                               
human  person in  their ethics;  to  Gwich'in, ANWR  is home  and                                                               
turning  the  land into  resources  would  alienate and  displace                                                               
them.   He quoted from  a source  in regard to  the environmental                                                               
crisis  and   the  suffering  of   the  excluded   [document  not                                                               
provided], and  expressed his opposition  to HJR 5 "for  the 1002                                                               
area."                                                                                                                          
                                                                                                                                
7:13:19 PM                                                                                                                    
                                                                                                                                
RICHARD  GLENN,  Vice  President,  Land  and  Natural  Resources,                                                               
Arctic Slope Regional Corporation  (ASRC), informed the committee                                                               
ASRC,  together  with  the   Kaktovik  Inupiat  Corporation,  own                                                               
approximately 91,000  acres of land  within the coastal  plain of                                                               
ANWR.   He said ownership  of the  land is true,  legitimate, and                                                               
legal ownership  of the land,  but its owners are  prevented from                                                               
developing  their land  unless  Congress acts  to  open ANWR  for                                                               
exploration.    The  13,000 shareholders  of  ASRC,  the  village                                                               
corporation, residents  of Kaktovik, and the  North Slope Borough                                                               
have  fought  for  the responsible  exploration  of  the  coastal                                                               
plain,  which can  be done  safely  on the  land where  residents                                                               
hunt, fish,  and catch caribou.   Mr. Glenn advised  only through                                                               
exploration of the  area will a determination be  made that there                                                               
are  resources  for  development  -  and  the  location  of  said                                                               
resources - so  responsible decisions can be made.   He urged for                                                               
the passage of the resolution.                                                                                                  
                                                                                                                                
7:15:37 PM                                                                                                                    
                                                                                                                                
KARA  MORIARTY, President/CEO,  Alaska Oil  and Gas  Association,                                                               
said she  was representing  the Alaska oil  and gas  industry and                                                               
referred to  a letter of  support for the resolution  provided in                                                               
the  committee packet.   She  said opportunities  to explore  for                                                               
resources  cannot  commence  until  the  land  is  available  for                                                               
purchasing  a lease.   The  resolution endorses  Congress opening                                                               
the  land  for  the  leasing  process,  which  is  extensive  and                                                               
requires  environmental impact  studies  before  and after  lease                                                               
sales.  Furthermore, she pointed out  the 1002 area was set aside                                                               
specifically for  oil and  gas development  in the  Alaska Native                                                               
Claims  Settlement  Act  (ANCSA)   and  in  the  Alaska  National                                                               
Interest  Lands Conservation  Act (ANILCA),  in order  to protect                                                               
"90-some  percent"  of the  refuge  and  allow development  in  a                                                               
certain area.   Ms. Moriarty opined safe  development is underway                                                               
"right next  door" and will continue  for decades.  She  said the                                                               
issue  is  on the  national  stage,  and  the industry  has  long                                                               
supported increased access to this area.                                                                                        
                                                                                                                                
REPRESENTATIVE RAUSCHER asked for the average cost of a lease.                                                                  
                                                                                                                                
MS.  MORIARTY stated  that is  very difficult  to speculate;  for                                                               
example,   lease   sales   can    generate   from   $200,000   to                                                               
$2,100,000,000 in bids.                                                                                                         
                                                                                                                                
7:18:41 PM                                                                                                                    
                                                                                                                                
ALEXANDER GEDSCHINSKY  acknowledged the state depends  on oil and                                                               
the  exploration  for oil  should  not  be unreasonably  stopped;                                                               
however,  ANWR  should   not  be  exploited.     He  pointed  out                                                               
ConocoPhillips Alaska, Inc. has  announced a massive discovery of                                                               
oil in  the National Petroleum  Reserve Alaska (NPRA),  which can                                                               
be  brought to  market  quickly  and cheaply.    He  said he  was                                                               
speaking for  younger residents whose  voices are not  heard, and                                                               
questioned why when  forty people testified in  opposition to the                                                               
bill and one  was in favor, legislators continued  to support the                                                               
bill.  He asked whether  constituents' comments matter as much as                                                               
those of oil companies.                                                                                                         
                                                                                                                                
7:20:23 PM                                                                                                                    
                                                                                                                                
PRINCESS JOHNSON  drew attention to  a map in the  committee room                                                               
and pointed  out about 95 percent  of the North Slope  is open to                                                               
oil  development; of  the  5 percent  left,  she questioned  when                                                               
there will be protection for the  remaining places.  She said she                                                               
is Neets'aii Gwich'in,  a member of the  Fairbanks Climate Action                                                               
Coalition, a mother, a daughter,  a sister, and has been speaking                                                               
out on this issue, along with  her home village of Vashraii K'oo,                                                               
or  Arctic Village,  since she  was 15  years old.   Ms.  Johnson                                                               
referred to earlier testimony, noting  people love Alaska because                                                               
of its  hunting, fishing,  and natural resources.   In  regard to                                                               
transparency, equity,  and [governmental] process, she  said over                                                               
the past three years the  U.S. Department of Interior updated the                                                               
comprehensive  conservation  plan  for ANWR,  and  during  public                                                               
testimony  in   Fairbanks  the   majority  of   Alaskans  opposed                                                               
development.   As  a result  of  that public  process, the  Obama                                                               
Administration  recommended to  Congress to  designate wilderness                                                               
for the  coastal plain  of ANWR  thus the  resolution disregards,                                                               
silences, and marginalizes the voices  of Alaskans.  In addition,                                                               
continuing  to privatize  and enclose  Alaska  robs residents  of                                                               
their ability to enjoy the land  and to feed their families.  Ms.                                                               
Johnson said  the belief  that all  Alaskans want  development in                                                               
the coastal plain of ANWR is untrue.                                                                                            
                                                                                                                                
7:22:47 PM                                                                                                                    
                                                                                                                                
ANNE  SENECA,   Spokesperson,  Consumer  Energy   Alliance  (CEA)                                                               
Alaska,  informed  the  committee   CEA  Alaska  seeks  to  raise                                                               
awareness   about  Alaska's   contribution  to   domestic  energy                                                               
production  for the  Lower  48.   Alaska's  onshore and  offshore                                                               
production  supplies   oil  to   America's  western   region  and                                                               
establishes  America's   geopolitical  presence  in   the  Arctic                                                               
region,  which plays  a  role  in consumer  energy  prices.   The                                                               
Arctic is a region of  growing geopolitical significance, and CEA                                                               
Alaska works to remind consumers  of the importance of the Arctic                                                               
region.  Representative Westlake's  leadership affords CEA Alaska                                                               
the  opportunity  to educate  consumers  and  advocate for  lower                                                               
energy prices through  the following key points:   only 8 percent                                                               
of  ANWR  would   be  considered  for  exploration;   if  oil  is                                                               
discovered,  2,000 acres  of  the  1002 area  would  be used  for                                                               
surface structures;  exploration would have a  positive impact on                                                               
the economy in Alaska and the Lower  48; there will be a need for                                                               
tens of  thousands of manufacturing and  service jobs nationwide;                                                               
history  shows that  oil  and gas  development  and wildlife  can                                                               
peacefully coexist  in the  Arctic; in the  oilfields there  is a                                                               
healthy population of brown bear,  fox, musk ox, birds, and fish;                                                               
dependence  on  imported oil  contributes  to  national debt  and                                                               
threatens  national security.   Ms.  Seneca concluded  CEA Alaska                                                               
supports an energy policy that  includes renewable energy sources                                                               
and fossil  fuels, and supports  exploration in the 1002  area of                                                               
ANWR.                                                                                                                           
                                                                                                                                
7:25:59 PM                                                                                                                    
                                                                                                                                
DONETTA TRITT  said she is  originally from Arctic Village.   She                                                               
informed  the committee  in late  July or  August, the  Porcupine                                                               
Caribou  Herd leaves  the 1001  area, also  known as  the calving                                                               
grounds  in  the  refuge,  and  then migrates  to  Canada.    The                                                               
migration route  travels near Arctic  Village, providing  for the                                                               
village as it has done for  thousands of years.  However in 2015,                                                               
for an unknown  reason, the caribou traveled  directly to Canada,                                                               
and that fall  elders in Arctic Village were  sick because Native                                                               
foods were not  available that winter.  Ms. Tritt  opined this is                                                               
a hint of what could happen.                                                                                                    
                                                                                                                                
7:27:43 PM                                                                                                                    
                                                                                                                                
RON  YARNELL said  he  owns a  wilderness  guiding business,  All                                                               
About Adventure, and  has been leading trips in  the Brooks Range                                                               
since the early  '70s and in ANWR since 1976.   The Arctic refuge                                                               
has provided  his living  for over  40 years,  and for  others as                                                               
well.   He  questioned  why  some are  anxious  to open  Alaska's                                                               
treasures  because over  95 percent  of  the north  slope of  the                                                               
Brooks  Range is  already open  to oil  development, or  is being                                                               
opened, and opined  protecting the 5 percent left is  enough of a                                                               
compromise.   Mr. Yarnell  inquired as to  why one  would destroy                                                               
what  one  loves about  Alaska:    wilderness.   His  significant                                                               
amount of experience  in the coastal plain reveals  that a unique                                                               
wilderness experience,  available only  there, would  not survive                                                               
oil  development.   He said  he has  guided thousands  across the                                                               
coastal plain  of the refuge and  opined one should not  vote for                                                               
this resolution  if one has not  spent time there.   In fact, the                                                               
federal government is needed to  protect special areas from local                                                               
pressure which  seeks to  exploit other  resources.   Mr. Yarnell                                                               
urged  the  committee to  drop  this  resolution and  concentrate                                                               
development in  Prudhoe Bay, which  has high potential  and fewer                                                               
conflicts.                                                                                                                      
                                                                                                                                
7:30:12 PM                                                                                                                    
                                                                                                                                
NARIEEZH  PETER said  she  lives in  Fairbanks  and is  Neets'aii                                                               
Gwich'in  and Navajo.   She  expressed  her belief  that not  all                                                               
Alaskans support  oil drilling,  especially in  ANWR.   Ms. Peter                                                               
said oil  is not bad,  but through its extraction  humans destroy                                                               
the  world, cause  climate change,  and hurt  the land,  which is                                                               
bad.   In  the  future  she wants  there  to  be caribou,  moose,                                                               
salmon,  ducks, and  blueberries that  have supplied  people with                                                               
food  and  energy  for generations;  however,  opening  ANWR  for                                                               
drilling will  disturb wildlife,  the Porcupine Caribou  Herd may                                                               
be forced to find new birthing  grounds, and the amount of salmon                                                               
may be decreased.  In  addition, plants may become polluted which                                                               
will diminish Native food sources  thus ANWR should be protected.                                                               
Ms. Peter went to Arctic Village  with her family and wants to go                                                               
again to see the  beauty and eat Native foods.   She said this is                                                               
her future.   In response to Co-Chair Josephson, she  said she is                                                               
12 years old and goes to middle school in Fairbanks.                                                                            
                                                                                                                                
7:32:45 PM                                                                                                                    
                                                                                                                                
MATT  GILBERT  said  he  is  Gwich'in  Athabascan  and  is  self-                                                               
employed.  He  has a master's degree in rural  development and is                                                               
speaking from  an economic  point of view  and from  his Gwich'in                                                               
culture worldview.  He has learned  the legislature gives up to a                                                               
$500 million tax  credit to oil companies just for  drilling.  In                                                               
addition,  oil companies  make more  from  Alaska wellheads  than                                                               
from those  in other countries -  a 30 percent return  - which he                                                               
compared to corporate  welfare.  Mr. Gilbert opined  if the state                                                               
stopped the aforementioned [corporate  welfare], it wouldn't need                                                               
to  develop  ANWR.    Also,  climate  change  is  worsening,  and                                                               
continuing  the use  of fossil  fuels is  suicidal; he  urged for                                                               
diversification  and  suggested the  use  of  federal grants  for                                                               
renewable energy.                                                                                                               
                                                                                                                                
7:35:06 PM                                                                                                                    
                                                                                                                                
ENEI PETER  said she is  Navajo and  (indisc.) and the  mother of                                                               
three Gwich'in Alaska Native daughters.   She asked the committee                                                               
to  oppose  HJR 5  because  disturbing  the  refuge would  be  an                                                               
affront  to the  Gwich'in way  of life  and to  the cultural  and                                                               
subsistence  survival  of  Alaska  Native  people;  further,  the                                                               
severity of climate  change demands that resources  remain in the                                                               
ground in some places.   Opening more places for development will                                                               
prevent  the U.S.  from meeting  its commitment  to curb  climate                                                               
change.    Ms. Peter  said  there  are  other  ways to  find  new                                                               
opportunities for the economy and for  jobs; in fact, there is no                                                               
other choice but to diversify  the state's economy.  The existing                                                               
policies  that  encourage  more   oil  and  gas  development  are                                                               
outdated,  and  are  based  on  a  history  of  colonization  and                                                               
corporate  structures that  were  set up  to  profit from  Native                                                               
people.                                                                                                                         
                                                                                                                                
7:37:37 PM                                                                                                                    
                                                                                                                                
LINDA  DEFOLIART spoke  in opposition  to  HJR 5.   Although  oil                                                               
companies assure  development can occur  safely and with  a small                                                               
footprint, climate  change is warming the  Arctic ground bringing                                                               
different   conditions  such   as  thawing,   freezing,  sinking,                                                               
heaving,  and  melting,  which   are  unknown  conditions.    She                                                               
questioned how  oil companies can guarantee  safety following the                                                               
many spills from drilling and  transporting oil; in addition, the                                                               
viewshed in the refuge is huge  and equipment could been seen for                                                               
miles.   The original footprint  for Prudhoe Bay was  2,100 acres                                                               
and is now over 600,000 acres.   If the current course continues,                                                               
eventually  there will  be no  more fossil  fuel, and  she opined                                                               
Alaska  needs to  find long  term fiscal  stability from  another                                                               
source.  Ms.  DeFoliart urged for the committee to  take the long                                                               
view and save the refuge  for its intrinsic value and sustainable                                                               
renewable resources.                                                                                                            
                                                                                                                                
7:38:48 PM                                                                                                                    
                                                                                                                                
JUSTINA BEAGNYAM  spoke in  opposition to  HJR 5.   She  said she                                                               
moved  from Texas  last year  to Alaska  because it  is the  last                                                               
great  wilderness,  and she  wished  to  merge her  education  in                                                               
business with  a career  in environmental policies.   She  read a                                                               
quote [document not  provided].  Ms. Beagnym pointed  out ANWR is                                                               
one of the  last remaining intact ecosystems in the  world with a                                                               
rich and  fragile habitat, heritage,  and culture.   Ms. Beagnyam                                                               
agreed there is  too much reliance on fossil fuels  and urged for                                                               
a transition to renewable energy with  no new leases on any land,                                                               
and further research  into renewable energy, which  would lead to                                                               
a more diversified economy.                                                                                                     
                                                                                                                                
7:41:55 PM                                                                                                                    
                                                                                                                                
JENNA JONAS stated  the coastal plain of ANWR is  a special place                                                               
to her as she  works as a guide in summer  and explores and hunts                                                               
with  a dog  team  in fall,  winter, and  spring.   Her  personal                                                               
experience  has shown  ANWR  is a  lush  and delicate  ecosystem;                                                               
further,  over the  past 10  years, she  has studied  this issue,                                                               
"and how much  the narrative is changing."   Decisions made today                                                               
will  have  repercussions  far  in the  future  due  to  Alaska's                                                               
position in the  global crisis of climate change.   Alaskans take                                                               
pride in their  independence, the land, their  management of fish                                                               
and  game, and  their respect  for  Native cultures.   Ms.  Jonas                                                               
opined  drilling  for  oil  in  one of  the  world's  last  great                                                               
ecosystems does  not honor the  aforementioned values  or improve                                                               
the lives  of future generations.   She encouraged  the committee                                                               
to recognize  that the value of  oil will increase as  it becomes                                                               
scarcer, to  value the opinion of  those who live in  the region,                                                               
and to consider  the long term effects of its  decision on future                                                               
generations.                                                                                                                    
                                                                                                                                
7:43:53 PM                                                                                                                    
                                                                                                                                
CHRISTINA EDWIN  stated her hope  is the legislature is  based on                                                               
the core  ideology of respect,  obligation to the  community, and                                                               
stewardship.   Based  on this  core  ideology, she  said she  was                                                               
present  for the  public process  and noted  there are  different                                                               
visions for  the future:   some wish to  drill in the  Arctic and                                                               
some do not.  Ms. Edwin  urged members of the committee to follow                                                               
their core ideology and serve  their community; her core ideology                                                               
is to oppose the resolution.                                                                                                    
                                                                                                                                
7:46:19 PM                                                                                                                    
                                                                                                                                
KEITH SILVER  spoke in support of  HJR 5 and advised  he does not                                                               
work for  an oil company.   The issue under  discussion addresses                                                               
0.5 of  1 percent of ANWR  and can be compared  to Point Thomson,                                                               
which is nearby  and is an example of oil  development done right                                                               
in a  small development.   Point Thomson has been  developed with                                                               
long   reach   drilling   and  stringent   safety   environmental                                                               
standards,  as  has  Alpine.    Mr. Silver  said  70  percent  of                                                               
Alaskans  agree  with  developing  ANWR, which  should  be  their                                                               
decision.  Recently, 9,000 jobs have  been lost mostly due to the                                                               
lack of oil and gas development  work.  He observed the 1002 area                                                               
is  about 150  miles  north  of Arctic  Village  over a  mountain                                                               
range, and the  land has multiple uses.  He  urged for passage of                                                               
the resolution in order to put  oil in the pipeline and people to                                                               
work.                                                                                                                           
                                                                                                                                
7:48:24 PM                                                                                                                    
                                                                                                                                
MISTY  NICKOLI said  she is  a lifelong  Alaskan from  Fairbanks.                                                               
She read a  quote [document not provided].  Ms.  Nickoli said she                                                               
and others have met with  numerous legislators who have expressed                                                               
the following:   1.) a desire to maintain the  Alaska way of life                                                               
and its  ecosystems; 2.) frustration  that "big oil"  spent money                                                               
from  Permanent Fund  Dividends (PFDs)  instead of  risking their                                                               
tax  subsidies;  3.)  support  of  the  economy  by  big  oil  is                                                               
overshadowed by the fact the state  does not profit, but pays out                                                               
$319  million  annually  to  big   oil  for  mostly  out-of-state                                                               
workers,  and Alaskan  employees are  the first  to be  laid off.                                                               
Further, many  legislators indicated an unwillingness  to contest                                                               
the refuge  as that  would mean political  suicide.   Ms. Nickoli                                                               
said anti-Alaska policies  cannot be conducted in  shadow, and it                                                               
is past time for legislators  and Alaskans to develop sustainable                                                               
industries and to stop the welfare system provided to big oil.                                                                  
                                                                                                                                
7:52:18 PM                                                                                                                    
                                                                                                                                
KERI PETERSON  spoke against the  bill.  Her  personal experience                                                               
from spending  a lot of time  in the refuge  is that it is  not a                                                               
wasteland,  unlike what  politicians and  the oil  companies say.                                                               
She said she  was happy that about 150 years  ago, others had the                                                               
foresight to  preserve Yellowstone,  Yosemite, the  Grand Canyon,                                                               
and  other national  parks, and  ANWR is  more wild  and special.                                                               
She worked at  Prudhoe Bay, which is the  opposite of wilderness,                                                               
and it  would be criminal  to put this  type of development  in a                                                               
pristine wilderness;  in fact, there  is no true  wilderness left                                                               
in the Lower  48, and now that  it is known the  earth is finite,                                                               
existing  intact  wildlife  systems  should be  preserved.    The                                                               
entire refuge, including  the 1002 area, is  critical habitat for                                                               
wildlife, and  its loss would  be devastating, especially  to the                                                               
caribou and the  Gwich'in people.  If the refuge  is not drilled,                                                               
it will  still exist after  the oil  is gone, which  is important                                                               
for tourism.                                                                                                                    
                                                                                                                                
7:54:10 PM                                                                                                                    
                                                                                                                                
ODIN MILLER said according to a  2010 estimate, 95 percent of the                                                               
food Alaskans eat is imported  [document not provided].  Although                                                               
Alaskans  pride   themselves  on  self-reliance,  the   state  is                                                               
vulnerable to  disruptions in  its food  pipeline, such  as after                                                               
[the terrorist attacks  of September 11, 2001].   A large portion                                                               
of  the 5  percent  of local  and wild  food  sources comes  from                                                               
salmon, salmonberries,  and caribou,  which are depended  upon by                                                               
indigenous  rural Alaskans.   Mr.  Miller said  he is  a lifelong                                                               
Alaskan    and    is    an    anthropology    student    studying                                                               
human/reindeer/caribou   interactions    in   Northwest   Alaska.                                                               
Caribou  are  facing  challenges  from climate  change  and  have                                                               
disappeared from parts  of the circumpolar North,  and caribou as                                                               
a food source cannot be replaced.   He questioned whether one can                                                               
trust a  presidential administration  that is going  to dismantle                                                               
existing  environmental   regulations,  to   conduct  responsible                                                               
environmental impact studies in ANWR.                                                                                           
                                                                                                                                
7:56:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RAUSCHER asked to call for the question.                                                                         
                                                                                                                                
CO-CHAIR JOSEPHSON said there is no question.                                                                                   
                                                                                                                                
REPRESENTATIVE  JOHNSON offered  to make  a motion  to move  [the                                                               
resolution] out of committee.                                                                                                   
                                                                                                                                
CO-CHAIR JOSEPHSON said, "I would decline that, if I can."                                                                      
                                                                                                                                
REPRESENTATIVE JOHNSON opined a vote on her request is needed.                                                                  
                                                                                                                                
7:57:32 PM                                                                                                                    
                                                                                                                                
The committee took an at ease from 7:57 p.m. to 8:25 p.m.                                                                       
                                                                                                                                
8:25:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON removed [her request to make a motion].                                                                  
                                                                                                                                
CO-CHAIR  JOSEPHSON, stating  there was  no objection,  continued                                                               
public testimony.                                                                                                               
                                                                                                                                
8:26:01 PM                                                                                                                    
                                                                                                                                
SAM ALEXANDER spoke  in opposition to HJR  5.  He stated  he is a                                                               
Gwich'in from Fort  Yukon and a lifelong Alaskan who  is tired of                                                               
seeing  Alaska kick  the can  of fiscal  responsibility down  the                                                               
road.  For 40 years oil  fields have bestowed immense wealth upon                                                               
the  state,  but the  state  remains  addicted  to oil  and  more                                                               
revenue, and  willing to  gamble its  children's birthright  to a                                                               
truly wild and  natural world.  As a veteran  serving in Iraq, he                                                               
saw the waste  and death the effect  of greed for oil  had on the                                                               
Iraqi people.   The same oil companies are  destroying Alaska and                                                               
do not  have a long  term interest in  the state, except  to make                                                               
money.  Mr.  Alexander advised drilling for oil  will not provide                                                               
national security; in fact, oil  development contributes to peril                                                               
by causing  climate change  and emitting  greenhouse gasses.   He                                                               
urged the committee to stop gambling with the future of Alaska.                                                                 
                                                                                                                                
8:27:37 PM                                                                                                                    
                                                                                                                                
JESSICA  GIRARD  stated she  is  a  disabled combat  veteran  who                                                               
served twice in Iraq.  She said  the addiction to oil sent her to                                                               
Iraq,  and  she has  been  fighting  against the  addiction  ever                                                               
since.   The answer to  security is  to "transition" so  wars are                                                               
not fought  over oil,  and refugees  will not  need to  come from                                                               
other states to  untainted places.  Alaska  has immense resources                                                               
and a culture  that provides depth and essence to  the land.  Ms.                                                               
Girard served  in the military  for the diversity of  culture and                                                               
said  the Gwich'in  cannot  be separated  from  the caribou  they                                                               
depend upon, or from the land which is theirs.                                                                                  
                                                                                                                                
8:29:42 PM                                                                                                                    
                                                                                                                                
MICHELLE TOOHEY stated  she is one of the 70  percent of Alaskans                                                               
who support opening exploration and  production of oil and gas in                                                               
the  small  portion  known  as  the  1002  area  of  ANWR.    The                                                               
percentage of  70 percent support  comes from polls  conducted in                                                               
2016  which also  showed support  has been  consistent since  the                                                               
1990s.  Strong support should not  be a surprise as the 1002 area                                                               
was intentionally  set aside from being  designated wilderness as                                                               
part of the  Alaska National Interest Lands  Conservation Act; in                                                               
fact, 19 million acres is  federally designated wilderness and 92                                                               
percent  of the  refuge is  closed for  development.   Ms. Toohey                                                               
opined showing  Congress that Alaskans support  the resolution is                                                               
a must.  She recommended  the resolution move through the process                                                               
as quickly as possible in  order to inform Congress that Alaskans                                                               
firmly stand behind oil and gas development in ANWR.                                                                            
                                                                                                                                
8:31:38 PM                                                                                                                    
                                                                                                                                
MELINDA  CHASE, spokesperson,  Fairbanks Climate  Coalition, said                                                               
she strongly  believes fossil fuel  should be left in  the ground                                                               
because Interior  Alaska is experiencing an  increasingly warming                                                               
climate.   Last  year in  the  Interior, there  were four  deaths                                                               
related  to open  water and  two of  the victims  had traditional                                                               
knowledge of the land; however,  the weather has become variable.                                                               
She  urged  for  the  committee  to look  beyond  Alaska  to  the                                                               
environment  of the  world, and  advance  Alaska to  a more  just                                                               
economy,  as children  need  the  land.   Ms.  Chase referred  to                                                               
national plans to keep the atmosphere  clear.  As the only Arctic                                                               
state in the nation, Alaska  has a responsibility to its children                                                               
and the nation,  and she urged that the resolution  not pass, and                                                               
for  members  of  the  committee to  educate  themselves  on  the                                                               
changing climate and its effects on Alaska.                                                                                     
                                                                                                                                
8:34:39 PM                                                                                                                    
                                                                                                                                
SHANNON BUSBY said she was speaking  in opposition to HJR 5.  The                                                               
practice  of assigning  numbers to  places distances  one from  a                                                               
sense  of  place.   The  beautiful  coastal  plain and  ANWR  are                                                               
beautiful places to be left untouched.                                                                                          
                                                                                                                                
8:35:33 PM                                                                                                                    
                                                                                                                                
BARBARA  HUFF TUCKESS,  Director, Legislative  Affairs, Teamsters                                                               
Local 959, spoke in support  of the committee substitute (CS) for                                                               
HJR  5.    Teamsters  Local 959  represents  approximately  7,000                                                               
members  working in  industries except  for fish,  and represents                                                               
members who  work in the oil  and gas industry.   The opportunity                                                               
for  Congress  to  open  the  1002 area  and  ANWR  would  create                                                               
additional jobs as  well as put additional barrels of  oil in the                                                               
pipeline.    She  directed attention  to  her  written  testimony                                                               
provided in the committee packet.                                                                                               
                                                                                                                                
8:37:16 PM                                                                                                                    
                                                                                                                                
KIM  HEACOX said  he was  opposed to  HJR 5.   He  is a  contract                                                               
writer with  National Geographic who  has lived in Alaska  for 35                                                               
years, and has  visited the coastal plain of ANWR  which he found                                                               
to be a beautiful and compelling  place.  Mr. Heacox opined wild,                                                               
natural beauty is essential to  one's mental and spiritual health                                                               
and  inspires one  to  care for  the  planet.   He  read a  quote                                                               
[document  not  provided].   Although  burning  oil  has  brought                                                               
wealth, it would be  a poor decision to drill for  oil and gas in                                                               
the 1002  area, which is the  biological heart of ANWR.   He read                                                               
another  quote [document  not  provided].   Science  warns if  20                                                               
percent  of known  oil  reserves  in the  world  are burned,  the                                                               
global   environment  and   the  geopolitical   sphere  will   be                                                               
destabilized  and  condemn  future generations  to  a  diminished                                                               
quality  of  life.   However,  the  GOP  in Congress  refuses  to                                                               
acknowledge human-caused  climate change.  He  read another quote                                                               
[document not  provided].   Mr. Heacox has  heard fears  that the                                                               
fossil fuel economy  is becoming immoral, in a  manner similar to                                                               
200 years  ago in the  Old South, when  its economy was  based on                                                               
slavery.  He  concluded drilling for oil is  an economic narcotic                                                               
and a short  term solution to a long term  problem, and suggested                                                               
the clean energy revolution is waiting.                                                                                         
                                                                                                                                
8:40:35 PM                                                                                                                    
                                                                                                                                
JEANINE ST. JOHN  said she was representing the  Lynden family of                                                               
transportation  and logistics  companies, which  is a  multimodal                                                               
transportation company providing  transportation links that bring                                                               
essential goods  and services to Alaska,  and transporting Alaska                                                               
products to  world markets  for over 100  years, and  she further                                                               
described Lynden companies'  services.  Ms. St.  John said Alaska                                                               
is a  resource state  and all benefit  from a  healthful economy;                                                               
Alaskans rely  on the ability  to develop resources  whether they                                                               
are fish, minerals,  oil and gas, and Alaska's  robust economy is                                                               
based on  the ability  to produce resources.   She  said Lynden's                                                               
support of the  development of the 1002 area is  based on history                                                               
that development  of energy resources  can be accomplished  in an                                                               
environmentally  safe  manner.    She stated  concern  about  the                                                               
recession and  the budget  deficit and, on  behalf of  Lynden and                                                               
its over 900 Alaska employees, urged support for HJR 5.                                                                         
                                                                                                                                
8:42:48 PM                                                                                                                    
                                                                                                                                
SARAH JAMES  said she  against HJR  5 and grew  up in  the Arctic                                                               
Village area where  she and her family hunt, fish,  and gather in                                                               
a remote  village and live  a good life.   She is  proud Gwich'in                                                               
Athabascan  Alaskan,  and (indisc.)  Indian,  an  elder, and  she                                                               
respects  elders of  the  past.   She said  she  was speaking  on                                                               
behalf of the Gwich'in nation, and  she was one of four chosen to                                                               
speak for her nation,  for the caribou, and her way  of life.  In                                                               
Arctic  Village in  1988, there  was  a rebirth  of the  Gwich'in                                                               
nation  after it  was  divided  by the  U.S.  and Canada  border.                                                               
Before  first  contact,  the  coastal   plain  of  ANWR  was  the                                                               
birthplace of the  Porcupine Caribou Herd and  was not threatened                                                               
by  oil and  gas development.   Since  then, the  Gwich'in nation                                                               
fought hard  with others  and won  battles without  compromise to                                                               
say "no"  to oil  and gas.   Ms. James stated  75 percent  of her                                                               
food is wild meat, mostly  caribou, which also provides materials                                                               
for clothing, arts and crafts,  and tools.  She further described                                                               
life and  a culture focused  on caribou, and urged  the committee                                                               
to  permanently protect  the coastal  plain of  ANWR, which  is a                                                               
sacred place.                                                                                                                   
                                                                                                                                
8:47:02 PM                                                                                                                    
                                                                                                                                
ELLA EDE said  she is one of thousands of  Alaskans who have been                                                               
laid off  due to  industry layoffs  in the past  few years.   She                                                               
said she was  proud of having worked in the  industry for over 25                                                               
years in  the environmental field and  stakeholder relations, and                                                               
helping the  industry responsibly develop  the North Slope.   Ms.                                                               
Ede  questioned  why  anyone would  oppose  the  resolution,  and                                                               
expressed her support of HJR 5  on behalf of her husband and four                                                               
children.  She  said she hopes her children will  be able to live                                                               
in  Alaska and  earn a  living  wage.   Her entire  family is  in                                                               
support  of opening  ANWR and  continuing  to develop  resources,                                                               
which is  mandated by the  state constitution, the  Alaska Native                                                               
Claims Settlement  Act, and  Native corporations.   Ms.  Ede said                                                               
she was not  paid to testify, but felt it  was important to speak                                                               
on behalf of the resolution.                                                                                                    
                                                                                                                                
8:49:33 PM                                                                                                                    
                                                                                                                                
MICHELLE  EGAN said  she was  speaking on  behalf of  the Alyeska                                                               
Pipeline  Service   Company  (Alyeska)  in  support   of  HJR  5.                                                               
Expanded  access to  responsible development  of oil  and natural                                                               
gas  resources  on  the  North  Slope  is  vitally  important  to                                                               
national  energy security,  job prosperity,  the Alaska  economy,                                                               
and the future  of the Trans-Alaska Pipeline System  (TAPS).  The                                                               
ongoing success of the pipeline  system is dependent upon healthy                                                               
levels  of  Alaska  crude  oil production;  in  fact,  TAPS  once                                                               
delivered 2,100,000  barrels of oil  per day, but in  2016, after                                                               
the  first  throughput  increase since  2002,  delivery  averaged                                                               
517,000  barrels per  day.   Although  Alyeska  can respond,  the                                                               
lesser  flow  creates long  term  challenges  that will  grow  in                                                               
difficulty if  the decline trend  continues.  The  most effective                                                               
solution is to  deliver more oil into TAPS from  the North Slope.                                                               
Ms. Egan  said Alyeska strongly supports  responsible exploration                                                               
efforts that result in increased  throughput into TAPS, including                                                               
the 1002 area of ANWR.                                                                                                          
                                                                                                                                
8:51:49 PM                                                                                                                    
                                                                                                                                
CARL  PORTMAN,  Deputy  Director,  Resource  Development  Council                                                               
(RDC), informed  the committee  RDC strongly  supports HJR  5 and                                                               
has consistently supported  the opening of the 1002  area of ANWR                                                               
to  oil and  gas  development.   According to  a  study, oil  and                                                               
development  in  ANWR  could increase  domestic  production  from                                                               
510,000 to nearly 1,500,000 barrels  per day for approximately 12                                                               
years, saving  the nation  billions of  dollars in  imported oil,                                                               
creating thousands of new job,  refilling TAPS and generating new                                                               
state and  federal revenue.   He said the  1002 area is  the most                                                               
prospective  conventional   onshore  prospect  in   the  country,                                                               
holding  an estimated  5.7  [billion] to  16  billion barrels  of                                                               
technically  recoverable  oil.     Not  one  acre  of  designated                                                               
wilderness would  be disturbed  by opening the  1002 area  due to                                                               
advances  in technology;  it is  possible to  develop the  energy                                                               
reserves  inside ANWR  using  only  a fraction  of  the area  and                                                               
without significant  disturbance to wildlife.   He concluded that                                                               
the  1002  area  of  ANWR  should  be  open  to  exploration  and                                                               
development  for  national  security   and  the  Alaska  economy,                                                               
because  the   Arctic  outer  continental  shelf   (OCS)  is  not                                                               
available, and RDC strongly urges for the passage of HJR 5.                                                                     
                                                                                                                                
8:54:00 PM                                                                                                                    
                                                                                                                                
CAROLYN KREMERS  said she  has lived in  Alaska for  thirty years                                                               
and served in  Russia for two years as a  U.S. Fulbright Scholar.                                                               
In 1999,  she began  writing a  poem which  she submitted  as her                                                               
testimony in  opposition to  HJR 5.   She read  from the  poem in                                                               
part [document not provided].                                                                                                   
                                                                                                                                
8:56:44 PM                                                                                                                    
                                                                                                                                
JAMES SQUYRES recommended a book on  ANWR and spoke in support of                                                               
HJR 5.  He urged for the bill to move from committee.                                                                           
                                                                                                                                
8:57:38 PM                                                                                                                    
                                                                                                                                
JOHN HYDE  spoke in opposition  to the  bill.  He  questioned how                                                               
much  the oil  in the  1002  area is  worth, in  order to  define                                                               
whether it  is worth  the risk of  destroying what  exists there.                                                               
He  observed most  wildlife  refuges and  national  parks have  a                                                               
buffer zone  surrounding them,  but ANWR  has none,  and wildlife                                                               
does not  adhere to  boundaries.  In  his experience  working for                                                               
the Alaska  Department of Fish  & Game, he learned  safety cannot                                                               
be guaranteed; for  example, shortly after the  [Exxon Valdez oil                                                               
spill of 3/24/28],  he witnessed what was caused  by human error,                                                               
and all errors cannot be prevented.                                                                                             
                                                                                                                                
9:00:04 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOSEPHSON closed public testimony.                                                                                     
                                                                                                                                
REPRESENTATIVE BIRCH  directed attention to a  letter provided in                                                               
the  committee packet  from Governor  Walker  that indicated  the                                                               
governor's support  for HJR  5.   He questioned  whether comments                                                               
from  Representative Westlake's  staff  should be  heard at  this                                                               
time.                                                                                                                           
                                                                                                                                
CO-CHAIR JOSEPHSON  expressed his confidence  that Representative                                                               
Westlake supports moving the resolution from committee.                                                                         
                                                                                                                                
REPRESENTATIVE BIRCH encouraged a yes vote on the resolution.                                                                   
                                                                                                                                
CO-CHAIR  JOSEPHSON  addressed  the  witnesses in  the  room  who                                                               
testified  about their  concerns, and  opined their  concerns are                                                               
not wrong in  their "long view" of [environmental  impacts to the                                                               
planet];  however, the  state  needs revenue,  which  is also  an                                                               
important factor.                                                                                                               
                                                                                                                                
9:02:57 PM                                                                                                                    
                                                                                                                                
The committee took a brief at ease.                                                                                             
                                                                                                                                
CO-CHAIR JOSEPHSON announced public testimony was reopened.                                                                     
                                                                                                                                
9:05:08 PM                                                                                                                    
                                                                                                                                
KRISTINA OLESKA (indisc.)  said she does not  want the resolution                                                               
to pass.   Her community  of Sutton has experienced  what happens                                                               
when the fossil fuel industry  destroys habitat; Moose Creek is a                                                               
place that has taken millions  of dollars, work by the community,                                                               
and  decades, to  return to  "a fraction  of what  it was  in the                                                               
past."   She  pointed out  the oil  and gas  industry has  a poor                                                               
record  of  placing the  health  and  safety  of people  and  the                                                               
environment  over that  of its  profits.   In  Alaska, the  Exxon                                                               
Valdez  oil spill  affected  the economy  through  the losses  in                                                               
commercial fishing,  recreation, and  tourism.  She  opined there                                                               
is a  need for  the state  to stop  giving [disasters]  a chance.                                                               
The  former chief  executive officer  of the  company responsible                                                               
for the  Exxon Valdez spill  is now  the Secretary of  State, and                                                               
she does not  trust him or the federal  administration to protect                                                               
the lives of Alaskans,  thus it is now up to  the committee.  She                                                               
referred to recent oil spills  and other disasters and opined the                                                               
state  cannot afford  to clean  up after  industry -  putting the                                                               
burden on  the younger generation  - and she urged  the committee                                                               
to not pass the resolution.                                                                                                     
                                                                                                                                
9:07:49 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOSEPHSON closed public testimony.                                                                                     
                                                                                                                                
9:08:05 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR said  she shares concerns and the  sense of urgency                                                               
about  climate  change;  however,  the  state's  current  revenue                                                               
situation  is  very  resource dependent.    She  recalled  during                                                               
former  Governor   Sarah  Palin's  administration  there   was  a                                                               
statewide   energy  plan   coordinator  and   a  climate   change                                                               
subcabinet,  and cautioned  the  state  has missed  opportunities                                                               
without those  positions in place.   Co-Chair Tarr  expressed her                                                               
hope the  current administration  will reconvene  the subcabinet,                                                               
and  spoke of  relevant  legislation that  will  come before  the                                                               
committee.    The  committee  seeks  to  support  environmentally                                                               
responsible development,  to meet  the state's energy  needs, and                                                               
to share concerns about the urgency of climate change action.                                                                   
                                                                                                                                
9:10:10 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR  moved to  report [CSHJR  5(AET)] out  of committee                                                               
with  individual recommendations  and  the  attached zero  fiscal                                                               
note.                                                                                                                           
                                                                                                                                
CO-CHAIR TARR objected.                                                                                                         
                                                                                                                                
9:10:39 PM                                                                                                                    
                                                                                                                                
A  roll call  vote was  taken.   Representatives Birch,  Johnson,                                                               
Rauscher,  Talerico, Drummond,  Parish,  and  Josephson voted  in                                                               
favor of  CSHJR 5(AET).   Representative  Tarr voted  against it.                                                               
Therefore, CSHJR 5 (AET) was  reported out of the House Resources                                                               
Standing Committee by a vote of 7-1.                                                                                            
                                                                                                                                
9:12:00 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Resources Standing Committee meeting was adjourned at 9:12 p.m.                                                                 

Document Name Date/Time Subjects
House Resources 2017 AOGCC.ppt HRES 2/8/2017 1:00:00 PM
House Resources 2017 AOGCC.pdf HRES 2/8/2017 1:00:00 PM
HB040 CS ver U.pdf HRES 2/8/2017 1:00:00 PM
HB 40
HB040 Sponsor Statement.pdf HRES 2/8/2017 1:00:00 PM
HB 40
HB040 Summary of changes.pdf HRES 2/8/2017 1:00:00 PM
HB 40
HB040 Supporting Documents 1.pdf HRES 2/8/2017 1:00:00 PM
HB 40
HB 40 support.pdf HRES 2/8/2017 1:00:00 PM
HB 40
hb040 fiscal note 1 vers D.pdf HRES 2/8/2017 1:00:00 PM
HB 40
hb040 fiscal note 2 vers D.pdf HRES 2/8/2017 1:00:00 PM
HB 40
hb040 fiscal note 3 vers D.pdf HRES 2/8/2017 1:00:00 PM
HB 40
hb040 fiscal note 1 vers U.pdf HRES 2/8/2017 1:00:00 PM
HB 40
hb040 fiscal note 2 vers U.pdf HRES 2/8/2017 1:00:00 PM
HB 40
hb040 fiscal note 3 vers U.pdf HRES 2/8/2017 1:00:00 PM
HB 40
HB040 CS ver U.pdf HRES 2/8/2017 1:00:00 PM
HB 40
HB040 Summary of changes.pdf HRES 2/8/2017 1:00:00 PM
HB 40
HB040 Supporting Documents 1.pdf HRES 2/8/2017 1:00:00 PM
HB 40