Legislature(2017 - 2018)BARNES 124

02/16/2018 01:00 PM RESOURCES

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Audio Topic
01:06:57 PM Start
01:08:01 PM HB267
01:17:55 PM Presentation(s): Pebble Mine Status Update
02:43:35 PM HB217
02:58:49 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 267 RELEASE HUNTING/FISHING RECORDS TO MUNI TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+ Presentation: Pebble Mine Status Update by TELECONFERENCED
General Mark Hamilton, Exec. Vice President of
External Affairs, Pebble Partnership
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 217 RAW MILK SALES; FOOD EXEMPT FROM REGS TELECONFERENCED
Moved CSHB 217(RES) Out of Committee
-- Testimony <Invitation Only> --
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE RESOURCES STANDING COMMITTEE                                                                             
                       February 16, 2018                                                                                        
                           1:06 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Andy Josephson, Co-Chair                                                                                         
Representative Geran Tarr, Co-Chair                                                                                             
Representative John Lincoln, Vice Chair                                                                                         
Representative Harriet Drummond                                                                                                 
Representative Justin Parish                                                                                                    
Representative DeLena Johnson                                                                                                   
Representative David Talerico                                                                                                   
Representative Mike Chenault (alternate)                                                                                        
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Chris Birch                                                                                                      
Representative George Rauscher                                                                                                  
Representative Chris Tuck (alternate)                                                                                           
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 267                                                                                                              
"An Act requiring the release  of certain records relating to big                                                               
game hunters,  guided hunts, and guided  sport fishing activities                                                               
to  municipalities   for  verification  of  taxes   payable;  and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PRESENTATION(S):  PEBBLE MINE STATUS UPDATE                                                                                     
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 217                                                                                                              
"An Act relating to the Alaska Food, Drug, and Cosmetic Act;                                                                    
relating to the sale of milk, milk products, raw milk, and raw                                                                  
milk products; and providing for an effective date."                                                                            
                                                                                                                                
     - MOVED CSHB 217(RES) OUT OF COMMITTEE                                                                                     
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 267                                                                                                                  
SHORT TITLE: RELEASE HUNTING/FISHING RECORDS TO MUNI                                                                            
SPONSOR(s): REPRESENTATIVE(s) EDGMON                                                                                            
                                                                                                                                
01/12/18       (H)       PREFILE RELEASED 1/12/18                                                                               
01/16/18       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/16/18       (H)       CRA, RES                                                                                               
01/25/18       (H)       CRA AT 8:00 AM BARNES 124                                                                              
01/25/18       (H)       Heard & Held                                                                                           
01/25/18       (H)       MINUTE(CRA)                                                                                            
02/08/18       (H)       CRA AT 8:00 AM BARNES 124                                                                              
02/08/18       (H)       Moved CSHB 267(CRA) Out of Committee                                                                   
02/08/18       (H)       MINUTE(CRA)                                                                                            
02/14/18       (H)       CRA RPT CS(CRA) 4DP 2NR                                                                                
02/14/18       (H)       DP: DRUMMOND, LINCOLN, KREISS-TOMKINS,                                                                 
                         PARISH                                                                                                 
02/14/18       (H)       NR: TALERICO, SADDLER                                                                                  
02/16/18       (H)       RES AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 217                                                                                                                  
SHORT TITLE: RAW MILK SALES; FOOD EXEMPT FROM REGS                                                                              
SPONSOR(s): REPRESENTATIVE(s) TARR                                                                                              
                                                                                                                                
04/07/17       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/07/17       (H)       RES, FIN                                                                                               
04/12/17       (H)       RES AT 1:00 PM BARNES 124                                                                              
04/12/17       (H)       Scheduled but Not Heard                                                                                
04/13/17       (H)       RES AT 5:00 PM BARNES 124                                                                              
04/13/17       (H)       -- Continued from 4/12/17 --                                                                           
04/14/17       (H)       RES AT 1:00 PM BARNES 124                                                                              
04/14/17       (H)       <Bill Hearing Postponed>                                                                               
04/17/17       (H)       RES AT 1:00 PM BARNES 124                                                                              
04/17/17       (H)       Heard & Held                                                                                           
04/17/17       (H)       MINUTE(RES)                                                                                            
01/31/18       (H)       RES AT 1:00 PM BARNES 124                                                                              
01/31/18       (H)       Heard & Held                                                                                           
01/31/18       (H)       MINUTE(RES)                                                                                            
02/07/18       (H)       RES AT 1:00 PM BARNES 124                                                                              
02/07/18       (H)       Heard & Held                                                                                           
02/07/18       (H)       MINUTE(RES)                                                                                            
02/14/18       (H)       RES AT 1:00 PM BARNES 124                                                                              
02/14/18       (H)       Heard & Held                                                                                           
02/14/18       (H)       MINUTE(RES)                                                                                            
02/16/18       (H)       RES AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
TIM CLARK, Staff                                                                                                                
Representative Bryce Edgmon                                                                                                     
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION   STATEMENT:     Introduced   HB   267   on  behalf   of                                                             
Representative Bryce Edgmon, sponsor.                                                                                           
                                                                                                                                
MARK HAMILTON, Executive Vice President for External Affairs                                                                    
Pebble Partnership                                                                                                              
Anchorage, Alaska                                                                                                               
POSITION   STATEMENT:     Provided   a  PowerPoint   presentation                                                             
entitled, "A New Path Forward," and answered questions.                                                                         
                                                                                                                                
MARIT CARLSON-VAN DORT, Director of Regional Affairs                                                                            
Pebble Partnership                                                                                                              
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:   Answered questions  during the  Pebble Mine                                                             
status update.                                                                                                                  
                                                                                                                                
ABE WILLIAMS, Commercial Fisherman                                                                                              
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:   Spoke  of  the value  of  the Pebble  Mine                                                             
project to the communities of Southwest Alaska.                                                                                 
                                                                                                                                
WAYNE FLOYD, Co-owner                                                                                                           
Cool Cache Farms                                                                                                                
Nikiski, Alaska                                                                                                                 
POSITION STATEMENT:   During the hearing of HB  217, testified in                                                             
support of Amendment 2.                                                                                                         
                                                                                                                                
CHRIS FLICKINGER, Spokesperson                                                                                                  
Kodiak Chapter                                                                                                                  
Alaska Farm Bureau, Inc.                                                                                                        
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT:   During the hearing of HB  217, testified in                                                             
support of Amendment 2.                                                                                                         
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:06:57 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  ANDY  JOSEPHSON  called the  House  Resources  Standing                                                             
Committee  meeting  to  order at  [1:06]  p.m.    Representatives                                                               
Josephson,  Chenault  (alternate),  Parish,  Talerico,  Drummond,                                                               
Johnson, Lincoln, and Tarr were present at the call to order.                                                                   
                                                                                                                                
         HB 267-RELEASE HUNTING/FISHING RECORDS TO MUNI                                                                     
                                                                                                                                
1:08:01 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  JOSEPHSON announced  that the  first order  of business                                                               
would be  HOUSE BILL NO.  267, "An  Act requiring the  release of                                                               
certain records relating  to big game hunters,  guided hunts, and                                                               
guided   sport   fishing   activities   to   municipalities   for                                                               
verification  of taxes  payable; and  providing for  an effective                                                               
date."                                                                                                                          
                                                                                                                                
[Before the  committee was the  committee substitute (CS)  for HB                                                               
267(CRA), labeled 30-LS0808\J.]                                                                                                 
                                                                                                                                
1:08:12 PM                                                                                                                    
                                                                                                                                
TIM  CLARK,  Staff,  Representative Bryce  Edgmon,  Alaska  State                                                               
Legislature, on  behalf of Representative  Edgmon, sponsor  of HB                                                               
267, paraphrased  from the following sponsor  statement [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     For  boroughs and  other municipalities  that bring  in                                                                    
     revenues  through  levies  on fish  and  game  guiding,                                                                    
     CSHB267(CRA) will  provide a tool to  help confirm that                                                                    
     activities  within   their  jurisdictions   subject  to                                                                    
     taxation  are being  accurately reported  to them.  The                                                                    
     bill  would  allow  municipalities  access  to  certain                                                                    
     records collected by the state  that relate to big game                                                                    
     hunters,  guided hunts,  and guided  sport fishing  for                                                                    
     the  purpose  of  verifying  taxes  payable.  All  such                                                                    
     information would remain confidential.                                                                                     
                                                                                                                                
     The access that  CSHB267(CRA) permits municipalities is                                                                    
     modeled   after   long-existing    provisions   in   AS                                                                    
     16.05.815(a)(4) and  AS 43.75.133, both of  which allow                                                                    
     local governments  to review certain  records, reports,                                                                    
     and  returns  to  verify payment  of  local  commercial                                                                    
     fishing taxes.                                                                                                             
                                                                                                                                
     With  state-government  cutbacks resulting  in  greater                                                                    
     responsibilities  and   costs  being  borne   by  local                                                                    
     governments,  all necessary  resources  should be  made                                                                    
     available  to our  municipalities  to  ensure they  are                                                                    
     receiving the  revenues due to them  according to their                                                                    
     local ordinances.                                                                                                          
                                                                                                                                
MR.  CLARK  pointed out  at  the  time  the information  is  made                                                               
available to municipalities,  the strict confidentiality required                                                               
of state agencies would apply to the municipalities as well.                                                                    
                                                                                                                                
REPRESENTATIVE  PARISH  directed  attention to  [an  email  dated                                                               
2/15/18,  provided in  the committee  packet] in  opposition from                                                               
the  Big  Game Commercial  Services  Board  (BGCSB), Division  of                                                               
Corporations, Business and  Professional Licensing, Department of                                                               
Commerce,  Community &  Economic  Development,  which stated  its                                                               
concern about confidentiality.                                                                                                  
                                                                                                                                
MR.   CLARK  opined   BGCSB  would   be   less  concerned   about                                                               
confidentiality  when apprised  of  [CSHB  267(CRA), Version  J].                                                               
The bill was amended by  the House Community and Regional Affairs                                                               
Standing Committee  to clarify the  confidentiality requirements;                                                               
furthermore,  the consequences  to an  official for  a breach  in                                                               
confidentiality would constitute a class A misdemeanor.                                                                         
                                                                                                                                
CO-CHAIR  JOSEPHSON asked  whether municipalities  feel they  are                                                               
not getting revenue to which they are entitled.                                                                                 
                                                                                                                                
MR.  CLARK  explained  affected municipalities  have  very  large                                                               
jurisdictions  and may  be  unaware of  all  hunting and  fishing                                                               
guiding activities.   In addition, some guides may  be unaware of                                                               
municipal  or borough  ordinances,  and some  may  forget to  pay                                                               
taxes  or fees;  however, most  businesses will  remit delinquent                                                               
taxes when notified.                                                                                                            
                                                                                                                                
CO-CHAIR JOSEPHSON observed some  guides or transporters may work                                                               
outside the seat of government.                                                                                                 
                                                                                                                                
1:13:08 PM                                                                                                                    
                                                                                                                                
MR.  CLARK  agreed and  gave  the  example  of regions  that  are                                                               
accessed by  floatplane and not  through an airport managed  by a                                                               
borough.                                                                                                                        
                                                                                                                                
REPRESENTATIVE JOHNSON  asked whether  there are other  state tax                                                               
records to which municipalities have access.                                                                                    
                                                                                                                                
MR.  CLARK  said  certain Alaska  Statutes  allow  municipalities                                                               
access  to  records regarding  commercial  fishing  from the  Tax                                                               
Division, Department of Revenue.                                                                                                
                                                                                                                                
REPRESENTATIVE  TALERICO   observed  from  his   experience  most                                                               
municipal codes require a municipality  to keep accurate records,                                                               
and  also include  confidentiality clauses;  furthermore, general                                                               
accounting  rules  and  standards   are  explicitly  followed  to                                                               
maintain accuracy for  auditing purposes.  He said  the issue was                                                               
discussed thoroughly at the time the  bill was heard by the House                                                               
Community and Regional Affairs Standing Committee, and expressed                                                                
his confidence in the conduct of municipalities.                                                                                
                                                                                                                                
1:17:21 PM                                                                                                                    
                                                                                                                                
HB 267 was held over.                                                                                                           
                                                                                                                                
^PRESENTATION(S):  Pebble Mine Status Update                                                                                    
          PRESENTATION(S):  Pebble Mine Status Update                                                                       
                                                                                                                              
1:17:55 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOSEPHSON announced that the next order of business                                                                    
would be a presentation by the Pebble Limited Partnership on the                                                                
status of the Pebble Mine.                                                                                                      
                                                                                                                                
1:19:55 PM                                                                                                                    
                                                                                                                                
MARK HAMILTON, Executive Vice President of External Affairs,                                                                    
Pebble Mine, provided a PowerPoint presentation entitled, "A New                                                                
Path Forward."  He first presented the following observations:                                                                  
                                                                                                                                
   • 1.  The project is located on state land within the Lake                                                                   
     and Peninsula Borough, 200 miles  southwest of Anchorage and                                                               
     17 miles  northwest of  Iliamna; the  project is  located on                                                               
     land that is open for  mineral entry and the prospect should                                                               
     be given  full vetting;  the deposit  was discovered  in the                                                               
     late 1980s  and work began  by Northern Dynasty  Minerals in                                                               
     2004;  the work  has  discovered a  world  class deposit  of                                                               
     copper, gold, and molybdenum                                                                                               
   • 2.  The partnership recognizes the cultural and commercial                                                                 
     importance of  salmon to residents of  Southwest Alaska, and                                                               
     has  undertaken  environmental, engineering,  and  technical                                                               
     work with a focus on  understanding fish and water resources                                                               
     affected by the project, work that has gone ignored                                                                        
   • 3.  The partnership seeks the opportunity to submit plans                                                                  
     for permitting  and reviewing processes in  a manner similar                                                               
     to  other projects;  on  12/22/17, the  U.S.  Army Corps  of                                                               
     Engineers   (USACE)   announced   the   beginning   of   the                                                               
     environmental impact  statement (EIS) process as  set out by                                                               
     the National  Environmental Policy  Act of 1969  (NEPA), and                                                               
     in which the project will participate fully                                                                                
   • 4.  All Alaskans should know the U.S. Environmental                                                                        
     Protection  Agency's (EPA's)  attempt to  block the  project                                                               
     from  filing its  permits created  an unscientific  study to                                                               
     justify  its  goal; the  action  to  preemptively block  the                                                               
     project   was  a   troubling   precedent   for  all   future                                                               
     development in  Alaska; a regulatory agency  should not have                                                               
     the ability to  preemptively stop or approve  a project; the                                                               
     action  has garnered  much opposition  from Alaska  entities                                                               
     and lawmakers                                                                                                              
   • 5.  Many opinions about the project have been formed from                                                                  
     skewed stories and advertising, and without complete and                                                                   
     accurate information                                                                                                       
                                                                                                                                
1:23:40 PM                                                                                                                    
                                                                                                                                
MR. HAMILTON  presented three  slides which  were photos  of Twin                                                               
Lakes that have been used  in opposition advertising; however, he                                                               
said the photos  are of property 85 miles from  the project.  Two                                                               
slides  illustrated the  actual  project site  in  Bristol Bay  -                                                               
which   encompasses  nearly   45,000  square   miles  -   and  an                                                               
illustration  of  the  Bristol  Bay watershed  of  40,000  square                                                               
miles.  An  illustration of the Pebble Mine  study area indicated                                                               
three sub-basins:  North Fork Koktuli  River, South  Fork Koktuli                                                               
River,  and Upper  Talarik Creek,  which  encompasses 400  square                                                               
miles or  1 percent of  Bristol Bay.   Continuing to  the project                                                               
permitting  process, Mr.  Hamilton  presented  a slide  entitled,                                                               
"Project Development  Timeline," and  pointed out the  project is                                                               
presently in the permitting  process, including opportunities for                                                               
public  involvement.     He  said   USACE  and   the  third-party                                                               
independent engineering  and consulting  firms selected  by USACE                                                               
would  establish the  rules for  the EIS.   He  characterized the                                                               
project as a  much smaller mine, and presented  a slide entitled,                                                               
"Pebble Project  Description" that illustrated components  of the                                                               
project, including the transportation  corridor and gas pipeline.                                                               
Slides 15  and 16  depicted hypothetical mine  sites by  EPA that                                                               
were 4.2  square miles and  13.5 square miles. Slide  17 depicted                                                               
the current project  plan of 5.9 square miles; the  study area is                                                               
1  percent of  Bristol Bay,  and  the mine  is approximately  1.5                                                               
percent of  1.0 percent.    A  slide entitled,  "Mine Operations"                                                               
illustrated  the  process  of mining  from  excavating,  hauling,                                                               
crushing  ore to  6-inch pieces,  grinding ore  to powder,  froth                                                               
flotation  with  the addition  of  chemicals,  scraping from  the                                                               
tailings   pond,  concentrate   dewatering  to   final  tailings,                                                               
gold/copper  concentrate   storage  in  sealed   containers,  and                                                               
shipping  to the  smelter.    The next  [untitled  slide] was  an                                                               
artist's  rendition of  the pit  and  overburden pile.   A  slide                                                               
illustrated water  treatment plants which are  a significant part                                                               
of a  mine, and  he explained  the project  would have  two water                                                               
treatment facilities that would  intercept any water reintroduced                                                               
to  the environment;  also  pictured was  the  tailings pile  and                                                               
seepage pond of the Gibraltar mine [British Columbia, Canada].                                                                  
                                                                                                                                
1:30:35 PM                                                                                                                    
                                                                                                                                
Mr.  Hamilton continued  to a  slide entitled,  "Tailings Storage                                                               
Facility" and said the project would  get its dam permit from the                                                               
Alaska Dam  Safety Program, Division  of Mining, Land  and Water,                                                               
Water  Resources   Section,  Department  of   Natural  Resources,                                                               
although the  dam looks more  like one-half  of a mountain.   The                                                               
dam would be  located at the tip of the  tailings facility and is                                                               
the means to  ensure the tailings pond does not  overflow or give                                                               
way.   Another rendition pictured  the tailings facility  and the                                                               
seepage pond designed with a  French drain that is a flow-through                                                               
system to prevent  a large build-up of water behind  the dam.  In                                                               
addition,  about  12  percent  of   the  tailings  may  be  acid-                                                               
generating and thus would be  in another pond covered with water.                                                               
Further,  there  would  be  inner  and  outer  walls  to  contain                                                               
overflow in the pit.  Mr.  Hamilton referred to [the Mount Polley                                                               
mine  disaster in  British Columbia,  Canada], noting  the Pebble                                                               
Partnership  learned a  great  deal about  the  mine disaster  in                                                               
order "to  explore the failure  scenario" because of the  risk to                                                               
the mine  (slides 24 and  25).  He  pointed out the  Mount Polley                                                               
mine tailings dam did not have  a flow-through design - but had a                                                               
1:1.5  slope  instead of  1:3  -  and  was  used to  hold  water.                                                               
Continuing to  slides 27-35,  he restated  the Pebble  Mine study                                                               
area consists  of about 1  percent of the Bristol  Bay watershed;                                                               
in terms of fish production,  the affected watershed is less than                                                               
0.5 of 1 percent, and of  that 82 percent exists in Upper Talarik                                                               
Creek;  however,  mine  facilities  have been  moved  from  Upper                                                               
Talarik Creek  - except for  a road -  leaving a small  number of                                                               
fish at  risk.  Therefore, all  of the tailings storage  and risk                                                               
involves  the North  Fork of  the  Koktuli River.   Although  the                                                               
project is  not fully  designed, EPA  reported in  the case  of a                                                               
breach, over  the course  of one  decade, physical  habitat would                                                               
travel 9  to 30 [kilometers] down  the North Fork of  the Koktuli                                                               
River before it enters the Mulchatna River.  He remarked:                                                                       
                                                                                                                                
     But, remember  that the EPA specifically  said a couple                                                                    
     of  things that  apply.   One  is, specifically,  [EPA]                                                                    
     said  they  would not  use  the  best engineering,  and                                                                    
     number two,  they would not  allow remediation.   Well,                                                                    
     Mount   Polley   began    very,   very   quickly   with                                                                    
     remediation, so we're looking  at a tailing[s] facility                                                                    
     that  could possibly  threaten .02  percent of  all the                                                                    
     sockeye  in  Bristol  Bay.     Remember  they  said  no                                                                    
     mitigation -  you're legally  and morally  obligated to                                                                    
     do remediation and that's what Mount Polley did.                                                                           
                                                                                                                                
1:35:38 PM                                                                                                                    
                                                                                                                                
MR.  HAMILTON further  explained Mount  Polley immediately  began                                                               
revegetation and quickly  restored the water, and  the plants and                                                               
fish  returned one  year later  (slides 37-39).   For  the Pebble                                                               
project, environmental  management continues,  including updating                                                               
permits  and  favorable  regulatory  inspections.   He  said  the                                                               
project  transportation  system  is   designed  to  minimize  any                                                               
ecological impact  by utilizing an ice-breaking  ferry instead of                                                               
a road.   He presented a slide  entitled, "Transportation System"                                                               
and a  slide entitled "Ice-Breaking Ferry"  that pictured various                                                               
ferries  and  gave  an  example  of  their  use.    Mr.  Hamilton                                                               
concluded  the  use of  a  ferry  would  result in  fewer  bridge                                                               
crossings of  streams, fewer roads,  and less impact  on wetlands                                                               
[slide entitled,  "Ferry Reduces Wetland Impact"].   Returning to                                                               
the  concentrate   in  the  mine,  a   slide  entitled,  "Mineral                                                               
Concentrate  in Covered  Containers" pictured  concentrate loaded                                                               
in a truck and placed in  sealed containers for transfer into the                                                               
hold of a  ship; the ships would  travel to a smelter  in the Far                                                               
East  every two  weeks.   An illustration  of port  operations in                                                               
Turnagain   Arm  was   presented.     He   continued  to   energy                                                               
infrastructure, noting  the project needs about  230 megawatts to                                                               
power the mine; natural gas  would be supplied by a 188-mile-long                                                               
pipeline from  existing natural gas  infrastructure on  the Kenai                                                               
Peninsula to the mine, further  energizing Southwest Alaska.  For                                                               
example, the project would provide  electric power to villages at                                                               
cost  via state-funded  infrastructure.    Expansion of  electric                                                               
power and natural gas would  present a business opportunity for a                                                               
Native corporation  to form  a utility.   Moreover,  Mr. Hamilton                                                               
suggested additional  power would  enhance the economic  value of                                                               
the  Bristol Bay  fishery.   Because of  the permitting  time and                                                               
construction  period,  the project  has  three  years to  prepare                                                               
workers  for construction  jobs, and  sufficient time  to educate                                                               
the mining engineers needed for mine production.                                                                                
                                                                                                                                
1:41:15 PM                                                                                                                    
                                                                                                                                
Mr. Hamilton  said the Pebble Mine  is not the biggest  in Alaska                                                               
(slide 52).  Although the price  of ore seven years in the future                                                               
is unknown,  the mine would be  a boon to the  Lake and Peninsula                                                               
Borough,  adding approximately  $20  million  into the  borough's                                                               
economy.  He  estimated the project's budget at  $400 million per                                                               
year, providing  over 750 direct  jobs, and  1,500-2,000 seasonal                                                               
and  construction  phase  jobs,  at an  average  mining  wage  of                                                               
$100,000.   He  stressed mining  jobs are  highly desired  in the                                                               
region and workers are exceptional.   A slide entitled, "Mining &                                                               
Fish Co-Exist"  illustrated mine locations  in the state,  and he                                                               
said mining  and fish co-exist  in every mine  in the state.   He                                                               
turned to environmental  issues and said copper  is increasing in                                                               
value because  of electric  cars and  cell phones;  mining cannot                                                               
continue  only in  countries  without environmental  protections.                                                               
Speaking  not as  a  representative  of Pebble  Mine,  but as  an                                                               
Alaskan,  he urged  the committee  to review  the methodology  of                                                               
opponents to  development, and their  tactics such as  those used                                                               
against  the  development  of  the Pebble  Mine  and  the  Arctic                                                               
National Wildlife Refuge.                                                                                                       
                                                                                                                                
1:44:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CHENAULT spoke of  Mr. Hamilton's previous careers                                                               
and  expressed his  interest in  why Mr.  Hamilton "has  taken on                                                               
this project."                                                                                                                  
                                                                                                                                
MR. HAMILTON  responded he was  happy in retirement;  however, he                                                               
spent one  month reviewing the  circumstances of the  project and                                                               
then decided "this is a wrong that needs to be righted."                                                                        
                                                                                                                                
REPRESENTATIVE  PARISH asked  how the  tailings storage  would be                                                               
adapted to cold weather.                                                                                                        
                                                                                                                                
MR. HAMILTON  said the  ice-breaking ferry  would cross  the lake                                                               
once  per day  during  production carrying  sealed containers  of                                                               
concentrate.   For the  tailings facility  there is  less concern                                                               
about dust in  winter, but snowpack and snowmelt  must be closely                                                               
monitored.  He concluded cold presents no effect.                                                                               
                                                                                                                                
REPRESENTATIVE PARISH asked about  the tailings operations at the                                                               
Red Dog mine, the Fort Knox mine, and the Pogo mine.                                                                            
                                                                                                                                
1:48:23 PM                                                                                                                    
                                                                                                                                
MR. HAMILTON  stated all have  tailings facilities and  Fort Knox                                                               
also has  a leach pile; all  monitor water usage and  storage due                                                               
to their importance to mine operations.                                                                                         
                                                                                                                                
CO-CHAIR  JOSEPHSON  recalled  testimony  [presented  before  the                                                               
committee  on 2/27/17]  by United  Tribes of  Bristol Bay  (UTBB)                                                               
informing the committee that 150  borehole sites were visited and                                                               
107 were  documented, [71] with  environmental issues.   Co-Chair                                                               
Josephson  surmised from  looking at  slides of  the sites  - and                                                               
from testimony  from a  UTBB consultant -  the boreholes  did not                                                               
look not fully  restored, which is why the  Department of Natural                                                               
Resources  (DNR) required  "a  special bond  for  Pebble that  it                                                               
previously  hadn't required."   He  asked whether  Pebble asserts                                                               
the  borehole  sites were  fully  restored,  and for  information                                                               
related to the exploration bonds that were required.                                                                            
                                                                                                                                
1:50:46 PM                                                                                                                    
                                                                                                                                
MR. HAMILTON  said the Pebble  boreholes have all  been inspected                                                               
and closed; in  fact, boreholes were shown in some  of the slides                                                               
he  presented, but  cannot  be seen.   Like  a  closed oil  well,                                                               
everything  around a  closed borehole  is restored.   He  advised                                                               
remediation is  planned at the start  of a project and  a bond is                                                               
posted to ensure a mine is closed and environmentally evaluated.                                                                
                                                                                                                                
CO-CHAIR  JOSEPHSON  expressed  his  understanding  DNR  required                                                               
Pebble to post an atypical cash bond.                                                                                           
                                                                                                                                
MR.  HAMILTON opined  DNR increased  the  level of  environmental                                                               
protection.                                                                                                                     
                                                                                                                                
CO-CHAIR JOSEPHSON read  a portion of a letter  dated 11/30/16 to                                                               
Andy  Mack, commissioner,  DNR,  from  Robert Heyano,  president,                                                               
UTTB, as follows:                                                                                                               
                                                                                                                                
     In short,  our scientists found acidic  soils with high                                                                    
     metal concentrations,  leaking wells,  dead vegetation,                                                                    
     and improper  drill casing closures at  inspected drill                                                                    
     sites;  all  causes of  concern  for  safety and  water                                                                    
     quality in Bristol Bay.                                                                                                    
                                                                                                                                
CO-CHAIR JOSEPHSON questioned whether  Mr. Hamilton's position is                                                               
all  of Pebble's  1,700 drill  sites have  been sealed  and fully                                                               
inspected.                                                                                                                      
                                                                                                                                
MR. HAMILTON said  that is absolutely true; the  project has been                                                               
inspected 57  times by DNR  and the  Alaska Department of  Fish &                                                               
Game.                                                                                                                           
                                                                                                                                
CO-CHAIR JOSEPHSON  asked whether  Pebble needs to  reserve water                                                               
rights to  Upper Talarik Creek,  even though the  current project                                                               
does not  include using that  part of  the basin for  tailings or                                                               
development.                                                                                                                    
                                                                                                                                
MR. HAMILTON  acknowledged there is  the possibility as  the mine                                                               
is  dug, some  water  flowing  into Upper  Talarik  Creek may  be                                                               
diverted  into  the  mine; therefore,  the  project  must  "claim                                                               
impact," although no facilities would  be built at that location.                                                               
However,  there would  be the  impact  of the  road across  Upper                                                               
Talarik Creek, and  he stressed the importance of  impact to this                                                               
area because  82 percent  of the  sockeye are in  the creek.   In                                                               
addition,  the  area  is  very   important  for  subsistence  and                                                               
recreational  fishing, thus  permits are  required.   However, he                                                               
said the water  would have to flow uphill to  reach Upper Talarik                                                               
Creek.                                                                                                                          
                                                                                                                                
1:55:42 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  JOSEPHSON recalled  the new  project plan  proposes the                                                               
operational  phase  of the  mine  would  be  20 years;  he  asked                                                               
whether Pebble  would be  willing to covenant  and contract  to a                                                               
system "that would hold Pebble to this 20-year mine plan."                                                                      
                                                                                                                                
MR. HAMILTON restated  the only mine plan submitted  to permit is                                                               
to dig for sixteen  years, and then to use low  grade ore for the                                                               
last four  years; any other  plans would require  new permitting.                                                               
He said "... I really can't  speak for the leadership of Northern                                                               
Dynasty, but  I would suspect  that they  would not choose  to do                                                               
that."                                                                                                                          
                                                                                                                                
CO-CHAIR JOSEPHSON, for  clarification, restated Northern Dynasty                                                               
would not  choose to reach  an agreement  with the state  to "fix                                                               
the footprint" in a development phase.                                                                                          
                                                                                                                                
MR. HAMILTON  said, "No, they  would fix  the footprint ..."   In                                                               
further  response  to  Co-Chair  Josephson,  he  opined  Northern                                                               
Dynasty would  not ask  for an extension  of the  new operational                                                               
plan  -  or expand  the  footprint  of  the  mine -  for  several                                                               
reasons:   the mine is designed  for 20 years; the  [Pebble] mine                                                               
may  operate extremely  well for  years, but  there may  be other                                                               
[mining operations]  in Bristol Bay;  the future is unknown.   He                                                               
said,  "...  I can't  imagine  it.   We  could  ask  that to  the                                                               
leadership of  Northern Dynasty, but  that's my opinion,  I can't                                                               
imagine why you'd do such a thing."                                                                                             
                                                                                                                                
CO-CHAIR  JOSEPHSON  turned  attention to  the  application  fees                                                               
Pebble  has  paid  for  miscellaneous   land  use  permit  (MLUP)                                                               
applications  that  were  submitted  to  the  Office  of  Project                                                               
Management and Permitting (OPMP), DNR.                                                                                          
                                                                                                                                
MR. HAMILTON explained  the standard procedure is  that a project                                                               
can  "pay to,  in essence,  move up  ... the  chain" in  order to                                                               
supplement  [for the  cost of]  the department's  extra workload.                                                               
He  spoke  in support  of  the  state's procedure,  although  the                                                               
project would "get nothing from  it."  Further, the NEPA process,                                                               
and oversight by  USACE, depoliticizes the process  and selects a                                                               
third-party  engineering  firm  that  is  paid  by  Pebble.    He                                                               
concluded  Pebble cannot  - and  does not  expect to  - gain  any                                                               
value from the policy.                                                                                                          
                                                                                                                                
2:00:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TALERICO  returned attention to the  design of the                                                               
tailings dam.                                                                                                                   
                                                                                                                                
MR. HAMILTON said the  design is a 3:1 slope, which  is a Class I                                                               
(high)  dam;  although  there  are no  faults  beneath  the  mine                                                               
footprint, the dam is designed as  if there were.  He advised the                                                               
project anticipates  the Alaska  Dam Safety Program  will require                                                               
Class I dam engineering standards  for all tailings facilities in                                                               
the future.                                                                                                                     
                                                                                                                                
REPRESENTATIVE  TALERICO advised  a  3:1 slope  is  the angle  of                                                               
repose  required   for  pulverized   sandstone  and  thus   is  a                                                               
substantial stability factor.                                                                                                   
                                                                                                                                
MR.  HAMILTON restated  the dam  design  is a  lesson from  Mount                                                               
Polley, and reviewed its features.                                                                                              
                                                                                                                                
CO-CHAIR  JOSEPHSON expressed  his understanding  there are  many                                                               
other risks feared by the  residents of Southwest Alaska, such as                                                               
dewatering.                                                                                                                     
                                                                                                                                
MR. HAMILTON said correct.   However, his presentation is focused                                                               
on the risk of a dam  failure because a dam failure that destroys                                                               
the fishery of Bristol Bay frightens the most people.                                                                           
                                                                                                                                
REPRESENTATIVE LINCOLN  posed a  scenario following  an extension                                                               
of  the 20-year  mine life  plan, and  asked for  amounts of  the                                                               
known or estimated mining reserves  located in the areas adjacent                                                               
to the existing site, at the initial production rate.                                                                           
                                                                                                                                
MR.  HAMILTON said  there are  enormous reserves  in the  region.                                                               
Initially,  the proponents  of the  mine focused  on mining  $400                                                               
billion of ore; in fact, the  ore body is the largest undeveloped                                                               
copper and  gold find in  the world.   However, about  four years                                                               
ago, a mining consultant suggested  designing a smaller mine with                                                               
the  fewest environmentally  damaging  aspects of  any mine  ever                                                               
built;  for example,  no  use  of cyanide  to  mine  the last  15                                                               
percent of gold.                                                                                                                
                                                                                                                                
2:06:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LINCOLN  related others' concern about  a smaller,                                                               
responsible  mine that  expands  production once  in  place.   He                                                               
asked what  opportunities are available  to the  local population                                                               
and the borough to address future expansion.                                                                                    
                                                                                                                                
MR. HAMILTON said the NEPA  process includes extensive periods of                                                               
public  comment;  in  addition,  expansion would  require  a  new                                                               
permitting process  with the additional burden  of the cumulative                                                               
effects of the first mine.  He restated the future is unknown.                                                                  
                                                                                                                                
REPRESENTATIVE LINCOLN  asked what  opportunities there  would be                                                               
for local  residents or boroughs  located closest to the  mine to                                                               
comment on a proposed expansion.                                                                                                
                                                                                                                                
2:08:25 PM                                                                                                                    
                                                                                                                                
MR. HAMILTON  stated at the  time [of a proposed  expansion], the                                                               
mine's record will have determined its future.                                                                                  
                                                                                                                                
CO-CHAIR JOSEPHSON  observed the  issuance of a  permit is  not a                                                               
democratic  process and  therefore,  strong  local and  statewide                                                               
opposition would  not necessarily  preclude the mine  from moving                                                               
to a different phase of development.                                                                                            
                                                                                                                                
MR.  HAMILTON   agreed;  however,  true   environmental  concerns                                                               
brought  forward through  the EIS  process  must be  successfully                                                               
addressed.                                                                                                                      
                                                                                                                                
REPRESENTATIVE DRUMMOND  returned attention to a  slide entitled,                                                               
"Tailings Storage  Facility" and  asked for  a definition  of PAG                                                               
tails.                                                                                                                          
                                                                                                                                
MR. HAMILTON  explained PAG  is an  acronym for  potentially acid                                                               
generating rock;  he restated  about 12  percent of  the tailings                                                               
come from PAG ore, so to  prevent PAG tailings from forming acid,                                                               
they are covered with water.                                                                                                    
                                                                                                                                
REPRESENTATIVE DRUMMOND surmised 12  percent of the tailings will                                                               
remain  permanently  covered  with  water after  the  project  is                                                               
closed.                                                                                                                         
                                                                                                                                
MR.  HAMILTON  suggested  PAG  tailings may  be  processed  by  a                                                               
heretofore  unknown  methodology;  otherwise, when  the  mine  is                                                               
closed,  PAG tailings  will  remain  in the  bottom  of the  pit,                                                               
covered with water, in perpetuity.                                                                                              
                                                                                                                                
REPRESENTATIVE  DRUMMOND questioned  whether the  main embankment                                                               
illustrated would be 600 feet above the original ground level.                                                                  
                                                                                                                                
2:12:20 PM                                                                                                                    
                                                                                                                                
MR. HAMILTON  explained the embankment  would start at  about 250                                                               
feet and  would increase  in height  by about  25 feet  every two                                                               
years  to contain  tailings and  water.   In further  response to                                                               
Representative Drummond, he said  the initial construction of the                                                               
embankment would be 250 feet above the original ground.                                                                         
                                                                                                                                
REPRESENTATIVE  DRUMMOND  asked  how  the  concentrate  would  be                                                               
loaded onto the ferry.                                                                                                          
                                                                                                                                
MR.  HAMILTON said  the  ferry that  crosses  Lake Iliamna  would                                                               
carry the trucks  loaded with concentrate; the  trucks would then                                                               
drive 35 miles  to the port for storage.   In further response to                                                               
Representative Drummond,  he confirmed the project  would need to                                                               
dredge in Lower Cook Inlet for the loading operation.                                                                           
                                                                                                                                
REPRESENTATIVE PARISH asked for the location of the smelter.                                                                    
                                                                                                                                
MR. HAMILTON restated the smelter would be in the Far East.                                                                     
                                                                                                                                
REPRESENTATIVE  PARISH asked  how the  project would  accommodate                                                               
intermittent  permafrost  and  changes   due  to  warming  Arctic                                                               
temperatures.                                                                                                                   
                                                                                                                                
MR.  HAMILTON said  he would  provide a  specific answer  from an                                                               
engineer.                                                                                                                       
                                                                                                                                
2:17:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PARISH  asked  whether  Pebble  would  work  with                                                               
Donlin  [Gold]  on  a  [natural]   gas  pipeline  to  the  Donlin                                                               
prospect.                                                                                                                       
                                                                                                                                
MR. HAMILTON said he would provide information in this regard.                                                                  
                                                                                                                                
REPRESENTATIVE PARISH inquired  as to the status  of support from                                                               
local Tribes.                                                                                                                   
                                                                                                                                
MR. HAMILTON  advised Pebble is  working closely with  two Tribal                                                               
governments in the Lake and  Peninsula Borough; support is strong                                                               
as  residents are  looking forward  to jobs  that would  stop the                                                               
outflow of residents from villages to cities.                                                                                   
                                                                                                                                
CO-CHAIR  JOSEPHSON  recommended  members  refer to  page  70  of                                                               
[Attachment] D  of the December  2017, USACE  application, [4.1.4                                                               
Closure/Post-Closure  Phase,  4.1.4.1   Water  Management  Plan],                                                               
which read as follows [in part]:                                                                                                
                                                                                                                                
     The pit  will continue  to fill until  the pit  lake is                                                                    
     formed.   Surface runoff from  the walls may  result in                                                                    
     metal  leaching.    Water quality  is  expected  to  be                                                                    
     acidic with  elevated metals  due to  overall oxidation                                                                    
     of  the open  pit walls.   The  pit lake  water quality                                                                    
     will be monitored, and  appropriate precautions will be                                                                    
     taken to manage wildlife activity  on the lake. ... The                                                                    
     water level should  never rise above 50  feet below the                                                                    
     elevation in which ground water flows ...                                                                                  
                                                                                                                                
CO-CHAIR JOSEPHSON said the foregoing  causes concern, along with                                                               
a reference  to a possible  need "to change altogether  the water                                                               
treatment plan as required."                                                                                                    
                                                                                                                                
2:21:11 PM                                                                                                                    
                                                                                                                                
MR.  HAMILTON  explained  the  project  seeks  to  fill  the  pit                                                               
completely and store  all the ore underwater;  however, the water                                                               
level must be 50 feet down,  to prevent the water pressure in the                                                               
pit from  reversing the  flow of  ground water  that has  come in                                                               
contact  with the  exposed  rocks.   He  said the  abovementioned                                                               
permit application to USACE will  be investigated and will reveal                                                               
less   environmentally   damaging  practical   alternatives   for                                                               
consideration. and will become part of the EIS.                                                                                 
                                                                                                                                
CO-CHAIR JOSEPHSON  advised the  Berkley Mine  in Montana  used a                                                               
similar model and is a source of concern due to leaching.                                                                       
                                                                                                                                
MR. HAMILTON  restated Pebble  will be  required to  address this                                                               
issue as part of the EIS permitting process.                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON asked  whether the  tailings [embankment]                                                               
would be vegetated.                                                                                                             
                                                                                                                                
MR. HAMILTON said vegetation would grow  on the slope, but not on                                                               
the tailings;  ultimately, the embankments would  be covered with                                                               
overburden which would support vegetation.                                                                                      
                                                                                                                                
REPRESENTATIVE JOHNSON asked whether  the containers on the ferry                                                               
would be sealed, and who has  oversight on the plan to cross Lake                                                               
Iliamna.                                                                                                                        
                                                                                                                                
MR. HAMILTON responded  the containers are sealed;  he was unsure                                                               
about  oversight,  or how  an  accident  on  the ferry  would  be                                                               
handled, but said that issue would be addressed in the EIS.                                                                     
                                                                                                                                
REPRESENTATIVE  LINCOLN   returned  attention  to   the  tailings                                                               
facility  and  observed  the  east   embankment  is  60  feet  in                                                               
elevation; he  surmised the  east embankment  is an  extension of                                                               
the natural rise in elevation.                                                                                                  
                                                                                                                                
MR. HAMILTON indicated yes.                                                                                                     
                                                                                                                                
REPRESENTATIVE LINCOLN  asked whether  it is legally  possible to                                                               
enact a local hire preference for a project on state land.                                                                      
                                                                                                                                
2:27:10 PM                                                                                                                    
                                                                                                                                
MR. HAMILTON stated the issue  is preparing workers so that local                                                               
organizations  have  the  capacity   to  fill  jobs  that  become                                                               
available.   He favored employing  locals by any  organization in                                                               
order to  lower transportation costs.   He said there is  time to                                                               
train workers  for all  of the needed  skills, provided  there is                                                               
support for  the project.  In  fact, Pebble and the  Arctic Slope                                                               
Regional  Corporation  (ASRC)  have   begun  to  investigate  the                                                               
existing  and potential  capacities of  the village  corporations                                                               
within  the Lake  and Peninsula  Borough that  could compete  for                                                               
mine jobs.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  LINCOLN  cautioned local  hire  may  not be  cost                                                               
effective   because  transportation   costs   are  high   between                                                               
villages, and  restated his question about  local hire provisions                                                               
for projects not on private land.                                                                                               
                                                                                                                                
CO-CHAIR JOSEPHSON  observed the  mining plan requires  access to                                                               
land  owned by  regional Native  corporations and  the state;  he                                                               
questioned  how Pebble  would  gain  access to  all  of the  land                                                               
needed to move its product to the west side of Cook Inlet.                                                                      
                                                                                                                                
MR. HAMILITON acknowledged  about 65 percent of  the land belongs                                                               
to the state and about 35  percent belongs to one of two regional                                                               
corporations, and said negotiations are ongoing in this regard.                                                                 
                                                                                                                                
CO-CHAIR JOSEPHSON  turned to the  issue of financing  $5 billion                                                               
to $6  billion in  construction costs,  and asked  whether Pebble                                                               
intends for the state to invest in the mine.                                                                                    
                                                                                                                                
MR. HAMILTON  said no.   The project has recently  partnered with                                                               
First Quantum  Minerals, which  is a  company experienced  in the                                                               
construction of copper  mines and that has a  policy of involving                                                               
local residents  in its work.   Proposed are investments  of $150                                                               
million per year  for three years, followed by a  payment of $1.3                                                               
billion, in order for First Quantum to own half of the project.                                                                 
                                                                                                                                
CO-CHAIR  JOSEPHSON noted  Pebble  has asked  the  state to  help                                                               
build a powerline.                                                                                                              
                                                                                                                                
2:34:00 PM                                                                                                                    
                                                                                                                                
MR. HAMILTON  said, "quite likely."   He suggested the  source of                                                               
the capital  to build powerlines  to transmit power to  a village                                                               
utility  could  come  from  the  Power  Cost  Equalization  (PCE)                                                               
program  because this  would  be a  one-time  expense that  would                                                               
eliminate the need for PCE.                                                                                                     
                                                                                                                                
REPRESENTATIVE   CHENAULT   cautioned   the   committee   against                                                               
restricting  a project  from future  expansion because  the state                                                               
has  greatly  benefitted  from  expansion [by  the  oil  and  gas                                                               
industry] at Prudhoe Bay.                                                                                                       
                                                                                                                                
2:36:00 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOSEPHSON  pointed out  the difference in  tax structure                                                               
between the oil and gas industries and the mining industry.                                                                     
                                                                                                                                
REPRESENTATIVE  PARISH  requested  a  future  response  regarding                                                               
Pebble's  plan to  address acid  generating dust  disposal during                                                               
the winter months.                                                                                                              
                                                                                                                                
2:36:18 PM                                                                                                                    
                                                                                                                                
MARIT  CARLSON-VAN DORT,  Director  of  Regional Affairs,  Pebble                                                               
Partnership,  in  response  to Representative  Parish,  said  the                                                               
positions of local Tribes adjacent  to the project site differ in                                                               
response to the  mine from opposition to neutrality;  some of the                                                               
Tribes and  village corporations  located nearer the  project are                                                               
neutral  and   support  a  full  NEPA   permitting  process  that                                                               
evaluates  the   project  on   its  merits.     In   response  to                                                               
Representative  Lincoln,  she  confirmed there  is  no  statutory                                                               
requirement for local hire preference  because the project is not                                                               
located  on Alaska  Native Claims  Settlement  Act (ANCSA)  land;                                                               
however,   Pebble  intends   to   maximize   local  hire   during                                                               
negotiations with landowners related  to right-of-way access.  In                                                               
response  to  Co-Chair Josephson,  regarding  access  to land  to                                                               
complete the  route of the  project, she said Pebble  has entered                                                               
into negotiations with some of  the landowners and surface rights                                                               
owners.  Ms.  Carlson Van-Dort noted one of her  primary roles is                                                               
to explore ways the Pebble  Partnership can maximize the economic                                                               
benefit of the  project for those living in the  region, and near                                                               
the  project site,  through public  discussion about  contracting                                                               
opportunities for village corporations and all local businesses.                                                                
                                                                                                                                
2:39:16 PM                                                                                                                    
                                                                                                                                
ABE  WILLIAMS informed  the committee  he is  a fourth-generation                                                               
commercial  fisherman born  and raised  in Bristol  Bay.   He has                                                               
served fifteen years  as president of a  village corporation, six                                                               
years on the Bristol Bay  School District school board, and three                                                               
years  on  the  Bristol  Bay  Borough assembly.    In  2010,  Mr.                                                               
Williams became affiliated  with the Pebble project  and he noted                                                               
its value to  the region and to the residents  located closest to                                                               
the  site  of  the  project.   He  acknowledged  there  are  many                                                               
concerns  from  fisherman  who participate  in  the  Bristol  Bay                                                               
fishery; however,  he confirmed  there is  local interest  in the                                                               
project  by   the  communities  of   Southwest  Alaska.     Rural                                                               
communities  are losing  population  and some  local schools  are                                                               
closing due  to the serious  economic issues affecting  the state                                                               
and specific  areas of the state.   For any project  located in a                                                               
region such as  Southwest Alaska, it is important  that the state                                                               
and the federal  government review the project for  its impact on                                                               
local residents.   He said there is support for  the project from                                                               
those whose voices have not  been heard, and expressed hope their                                                               
testimony  would be  brought forward  during the  NEPA permitting                                                               
process.                                                                                                                        
                                                                                                                                
CO-CHAIR  JOSEPHSON   asked  whether   the  Bristol   Bay  Native                                                               
Corporation (BBNC) will allow access to the subsurface lands.                                                                   
                                                                                                                                
MR. WILLIAMS said he could not  speak on behalf of the management                                                               
of BBNC, although he is  a shareholder.  He noted [profit-sharing                                                               
provisions  of   ANCSA],  and  said,  "...   Bristol  Bay  Native                                                               
Corporation is an  owner of subsurface right and I,  I think that                                                               
could quite possibly create some  angst if they weren't, in fact,                                                               
utilizing  those resources  for sale  or for  the benefit  of not                                                               
only  their  own  shareholders,  but  at  the  same  time,  other                                                               
regional corporations  and village corporations within  the State                                                               
of Alaska.                                                                                                                      
                                                                                                                                
          HB 217-RAW MILK SALES; FOOD EXEMPT FROM REGS                                                                      
                                                                                                                                
2:43:35 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  JOSEPHSON announced  that the  final order  of business                                                               
would  be HOUSE  BILL NO.  217, "An  Act relating  to the  Alaska                                                               
Food, Drug, and Cosmetic Act; relating  to the sale of milk, milk                                                               
products, raw milk,  and raw milk products; and  providing for an                                                               
effective date."                                                                                                                
                                                                                                                                
CO-CHAIR JOSEPHSON handed the gavel to Co-Chair Tarr.                                                                           
                                                                                                                                
CO-CHAIR  TARR informed  the committee  an amendment  provided in                                                               
the committee  packet [related to  labeling Alaska  food products                                                               
(raw milk),  and discussed at  the hearing of 2/14/18]  would not                                                               
be moved for adoption.                                                                                                          
                                                                                                                                
2:45:22 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR moved to adopt  Amendment 2, labeled 30-LS0593\J.3,                                                               
Wayne, 2/15/18.                                                                                                                 
                                                                                                                                
CO-CHAIR JOSEPHSON objected for discussion purposes.                                                                            
                                                                                                                                
CO-CHAIR TARR said due to the  growing interest in farm tours and                                                               
visits,  there is  a need  to protect  farmers who  seek to  host                                                               
tours  on their  farms.   Currently,  AS 09.65.290(e)(3),  limits                                                               
liability related  to sports or recreational  activities, and the                                                               
bill seeks to add farm touring  to the list of activities in this                                                               
statute.    Further, Amendment  2  adds  the definition  of  farm                                                               
touring on page 2, lines 1-3, which read:                                                                                       
                                                                                                                                
          (4)  "farm touring"  means briefly visiting a farm                                                                    
     to observe  or experience aspects of  raising, growing,                                                                    
     producing,  cultivating, harvesting,  or processing  an                                                                    
     agricultural  product as  a tourist,  without receiving                                                                    
     pay.                                                                                                                       
                                                                                                                                
CO-CHAIR TARR explained the amendment  would also allow a tourist                                                               
to pick fruit or flowers on a farm.                                                                                             
                                                                                                                                
REPRESENTATIVE DRUMMOND  asked whether  dinners served on  a farm                                                               
would be considered farm touring as defined by the amendment.                                                                   
                                                                                                                                
CO-CHAIR TARR said yes.                                                                                                         
                                                                                                                                
2:47:50 PM                                                                                                                    
                                                                                                                                
WAYNE  FLOYD,  Co-owner,  Cool  Cache Farms,  said  his  farm  in                                                               
Nikiski specializes in  peonies and food products.   He expressed                                                               
his support  for the amendment because  the agricultural industry                                                               
is now  expanding into  [farm touring] which  is a  new industry;                                                               
agriculture  in  Alaska  is  becoming  known  and  is  attracting                                                               
visitors.   Farms carry liability  insurance, but  insurers raise                                                               
rates on policies  for tourism activities such  as selling U-pick                                                               
products.   Thus,  the amendment  would help  farmers keep  their                                                               
expenses down, so  they can compete with products  from the Lower                                                               
48.  Mr.  Floyd pointed out because the  tourism industry already                                                               
has protection,  adding farm  tourism is  logical and  would help                                                               
small farms grow.                                                                                                               
                                                                                                                                
REPRESENTATIVE  PARISH asked  how often  injuries are  associated                                                               
with U-pick activities.                                                                                                         
                                                                                                                                
MR. FLOYD explained farms with  beehives may have bees on flowers                                                               
that can lead to stung noses,  but farmers want to have insurance                                                               
against reasonable and valid claims.                                                                                            
                                                                                                                                
2:52:08 PM                                                                                                                    
                                                                                                                                
CHRIS  FLICKINGER,  Spokesperson,  Kodiak  Chapter,  Alaska  Farm                                                               
Bureau, Inc., said  people stop by at his ranch  and want to help                                                               
brand the animals, which could lead to injuries.                                                                                
                                                                                                                                
2:52:51 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOSEPHSON withdrew his objection.   There being no other                                                               
objection, Amendment 2 was adopted.                                                                                             
                                                                                                                                
CO-CHAIR  TARR  reviewed  HB  217,  as  amended,  which  includes                                                               
provisions  to  allow  the Department  of  Natural  Resources  to                                                               
market the  Alaska Grown trademark; provides  product procurement                                                               
preference  permissive  from 7  percent  to  15 percent;  creates                                                               
consistent statewide  policy for  the cottage food  industry with                                                               
informed  consumer   consent;  included  a  provision   for  farm                                                               
touring.                                                                                                                        
                                                                                                                                
2:54:16 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOSEPHSON  moved to report the  committee substitute for                                                               
HB 217,  labeled 30-LS0593\J, Wayne,  2/6/18, as amended,  out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal notes.                                                                                                                   
                                                                                                                                
REPRESENTATIVE  TALERICO objected  for discussion  purposes.   He                                                               
stated  his interest  in an  amendment previously  discussed [but                                                               
not moved  for adoption  related to  labeling food  products (raw                                                               
milk)] which addresses an issue  critical to local producers.  He                                                               
urged for continued work on this issue.                                                                                         
                                                                                                                                
CO-CHAIR TARR suggested a subcommittee  representing all areas of                                                               
the state  could continue hearing  testimony from farmers  on the                                                               
[labeling of food products and] raw milk issue.                                                                                 
                                                                                                                                
REPRESENTATIVE PARISH directed  attention to the bill  on page 2,                                                               
lines 26-28, which read [in part]:                                                                                              
                                                                                                                                
      "THIS PRODUCT WAS MADE IN A PRIVATE FACILITY THAT IS                                                                      
     NOT SUBJECT TO STATE OR MUNICIPAL REGULATION";                                                                             
                                                                                                                                
REPRESENTATIVE PARISH  stated his preference for  the language in                                                               
the original version of the bill, which read:                                                                                   
                                                                                                                                
     This product was made in a private kitchen that is not                                                                     
     inspected by a state or local agency.                                                                                      
                                                                                                                                
                                                                                                                                
CO-CHAIR  TARR  said the  change  in  language was  suggested  by                                                               
Legislative Legal Services, Legislative Affairs Agency.                                                                         
                                                                                                                                
2:57:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TALERICO  removed his  objection.  There  being no                                                               
further objection,  CSHB 217(RES) was  reported out of  the House                                                               
Resources Standing Committee.                                                                                                   
                                                                                                                                
2:58:49 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Resources Standing Committee meeting was adjourned at 2:58 p.m.                                                                 
                                                                                                                                

Document Name Date/Time Subjects
HB 267 1 CSHB267(CRA), Version J.pdf HRES 2/16/2018 1:00:00 PM
HRES 2/23/2018 1:00:00 PM
HB 267
HB 267 2 Version D.PDF HRES 2/16/2018 1:00:00 PM
HB 267
HB 267 3 Explanation of Changes--HB 267 to CSHB267(CRA) 2.8.18.pdf HRES 2/16/2018 1:00:00 PM
HRES 2/23/2018 1:00:00 PM
HB 267
HB 267 4 CSHB267(CRA) Sponsor Statement--Release of Hunting and Fishing Records to Municipalities 2.8.18.pdf HRES 2/16/2018 1:00:00 PM
HRES 2/23/2018 1:00:00 PM
HB 267
HB 267 5 Fiscal Note HB267-DCCED-CBPL-01-19-18.pdf HRES 2/16/2018 1:00:00 PM
HRES 2/23/2018 1:00:00 PM
HB 267
HB 267 6 Fiscal Note HB267-DFG-DSF-01-19-18.pdf HRES 2/16/2018 1:00:00 PM
HRES 2/23/2018 1:00:00 PM
HB 267
HB 267 7 Fiscal Note HB267-DFG-DWC-01-19-18.pdf HRES 2/16/2018 1:00:00 PM
HRES 2/23/2018 1:00:00 PM
HB 267
HB 267 8 Supporting Document--BBEDC Support Letter 1.26.2018.pdf HRES 2/16/2018 1:00:00 PM
HRES 2/23/2018 1:00:00 PM
HB 267
HB 267 Big Game Commercial Services Board Hunt Record and Activity Report--2.8.2018.PDF HRES 2/16/2018 1:00:00 PM
HRES 2/23/2018 1:00:00 PM
HB 267
HB 267 Supporting Document--Lake and Peninsula Borough Municipal Code Title 6--1.12.2018.pdf HRES 2/16/2018 1:00:00 PM
HB 267
HB 267 Supporting Document--Legal Consequences for Violating Confidentiality 2.8.18.pdf HRES 2/16/2018 1:00:00 PM
HRES 2/23/2018 1:00:00 PM
HB 267
Big Game Commercial Services Board re HB 267.pdf HRES 2/16/2018 1:00:00 PM
HB 267
Pebble Partnership Presentation.pdf HRES 2/16/2018 1:00:00 PM
Pebble Mine
HB217 (CS) Version J 2.6.18.pdf HRES 2/7/2018 1:00:00 PM
HRES 2/14/2018 1:00:00 PM
HRES 2/16/2018 1:00:00 PM
HB 217
HB217 CS Version J - Sectional Analysis 2.7.18.pdf HRES 2/7/2018 1:00:00 PM
HRES 2/16/2018 1:00:00 PM
HB 217
CSHB217 Summary of Changes Ver J to A 2.12.18.pdf HRES 2/14/2018 1:00:00 PM
HRES 2/16/2018 1:00:00 PM
HB 217
HB 217 Fiscal Note - DNR-AGR 2.1.18.pdf HRES 2/14/2018 1:00:00 PM
HRES 2/16/2018 1:00:00 PM
HB 217
HB217 Fiscal Note - DEC-EHL 1.26.18.pdf HRES 1/31/2018 1:00:00 PM
HRES 2/7/2018 1:00:00 PM
HRES 2/14/2018 1:00:00 PM
HRES 2/16/2018 1:00:00 PM
HB 217
HB217 Fiscal Note - DEC-EH 1.26.18.pdf HRES 1/31/2018 1:00:00 PM
HRES 2/7/2018 1:00:00 PM
HRES 2/14/2018 1:00:00 PM
HRES 2/16/2018 1:00:00 PM
HB 217
HB217 Supporting Document - Alaska Chamber Endorses Food Freedom 10.12.17.pdf HRES 1/31/2018 1:00:00 PM
HRES 2/7/2018 1:00:00 PM
HRES 2/14/2018 1:00:00 PM
HRES 2/16/2018 1:00:00 PM
HB 217
HB217 Supporting Document - Food Hub 2.13.18.pdf HRES 2/14/2018 1:00:00 PM
HRES 2/16/2018 1:00:00 PM
HB 217
HB 217 CS Version J - FarmTouring - Amendment Two - Rep. Tarr 2.15.18.pdf HRES 2/16/2018 1:00:00 PM
HB 217
HB 217 CS Version J Amendment One, Rep. Tarr 2.13.18.pdf HRES 2/14/2018 1:00:00 PM
HRES 2/16/2018 1:00:00 PM
HB 217
HB 267 Letter of opposition from BGCS Board.pdf HRES 2/16/2018 1:00:00 PM
HB 267
HB 267 CSHB267(CRA) Sectional Summary--Release of Hunting and Fishing Records to Municipalities 2.13.18.pdf HRES 2/16/2018 1:00:00 PM
HRES 2/23/2018 1:00:00 PM
HB 267
HB 267 Opposing Document - Letter from Big Game Commercial Services Board 2.16.18.pdf HRES 2/16/2018 1:00:00 PM
HRES 2/23/2018 1:00:00 PM
HB 267
HB 267 Supporting Document--Yakutat Support 2.15.18.pdf HRES 2/16/2018 1:00:00 PM
HRES 2/23/2018 1:00:00 PM
HB 267
Letter to HRES Chair Josephson - From Hamilton.pdf HRES 2/16/2018 1:00:00 PM
Argon Report - April 2017.pdf HRES 2/16/2018 1:00:00 PM
Pebble Project 2017 Care and Maintenance Work Plan.pdf HRES 2/16/2018 1:00:00 PM
DNR Field Summary Report for Pebble - Sept 2017.pdf HRES 2/16/2018 1:00:00 PM
Pebble Project 2017 Reclamation Report.pdf HRES 2/16/2018 1:00:00 PM