Legislature(1997 - 1998)

02/04/1998 03:42 PM Senate RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
              SENATE RESOURCES COMMITTEE                                       
                   February 4, 1998                                            
                      3:42 P.M.                                                
                                                                               
MEMBERS PRESENT                                                                
                                                                               
Senator Rick Halford, Chairman                                                 
Senator Lyda Green, Vice Chairman                                              
Senator Loren Leman                                                            
Senator Bert Sharp                                                             
Senator Robin Taylor                                                           
Senator Georgianna Lincoln                                                     
                                                                               
MEMBERS ABSENT                                                                 
                                                                               
Senator John Torgerson                                                         
                                                                               
COMMITTEE CALENDAR                                                             
                                                                               
WATERWAY MANAGEMENT ISSUES                                                     
                                                                               
WITNESS REGISTER                                                               
                                                                               
Mr. Mike Marsh, Staff Auditor                                                  
Legislative Audit Division                                                     
P.O. Box 113300                                                                
Juneau, AK 99811-3300                                                          
                                                                               
Mr. Paul Bowers, Director                                                      
Statewide Aviation                                                             
Department of Transportation and Public Facilities                             
P.O. Box 196900                                                                
Anchorage, AK 99519-6900                                                       
                                                                               
Mr. Bruce Botelho, Attorney General                                            
Department of Law                                                              
P.O. Box 110300                                                                
Juneau, AK 99811-0300                                                          
                                                                               
Ms. Joanne Grace, Assistant Attorney General                                   
Department of Law                                                              
P.O. Box 110300                                                                
Juneau, AK 99811-0300                                                          
                                                                               
Ms. Jane Angvik, Director                                                      
Division of Lands                                                              
Department of Natural Resources                                                
3601 C Street, Ste 1122                                                        
Anchorage, AK 99503-5947                                                       
                                                                               
Mr. Jim Culberson, Navigability Team                                           
Division of Lands                                                              
Department of Natural Resources                                                
3601 C. St., Ste 1122                                                          
Anchorage, AK 99503-5947                                                       
                                                                               
Ms. Robin Willis, Biologist                                                    
Division of Habitat and Restoration                                            
333 Raspberry Rd.                                                              
Anchorage, AK 99518-1599                                                       
                                                                               
Ms. Carol Shobe, Realty Services Section                                       
Division of Lands                                                              
Department of Natural Resources                                                
3601 C St. Ste. 960                                                            
Anchorage, AK 99503-5947                                                       
                                                                               
ACTION NARRATIVE                                                               
                                                                               
TAPE 98-5, SIDE A                                                              
Number 001                                                                     
                                                                               
CHAIRMAN HALFORD called the Senate Resources Committee meeting to              
order at 3:42 p.m. and announced the Committee would continue                  
discussion on Waterway Management Issues.  In the last meeting one             
question asked was which corporations had agreed to stipulations               
regarding replacement easements if the continuous easements in the             
court case were not upheld, which they were not.  He referenced a              
list of corporations before the committee that could go back and               
negotiate for discontinuous easements as were envisioned in 17 (b)             
according to court interpretation.                                             
                                                                               
Another thing the committee asked for were copies of the public                
easement atlases which they also had before them along with a copy             
of the Unalaska easement vacation.  He said they didn't have                   
anything back yet on funding allocations and were going to get an              
updated response to the audit report from Department of Law,                   
Department of Fish and Game, and Department of Natural Resources.              
                                                                               
MR. MARSH, Legislative Auditor, said quite a few of the                        
recommendations had already been successfully resolved.                        
Recommendation #1 for DNR personnel who review the easement notices            
and navigability reports to document the rationale for their                   
decisions is now being done according to Mr. Dick Mylius, Division             
of Lands.                                                                      
                                                                               
Recommendation #2 that DNR and ADF&G should facilitate BLM's                   
inclusion of citizen groups in the process for reserving public                
easements was perhaps misunderstood.  He had in mind that they                 
simply have three meetings - one with each of the BLM districts in             
the different areas of Alaska - where the citizen groups could be              
invited and be put on a mailing list.                                          
                                                                               
Recommendation #3 had to do with one particular BLM district that              
has some boiler plate provisions which he understood from Ms.                  
Shobe, Realty Services, had been successfully negotiated and was no            
longer an issue.                                                               
                                                                               
Recommendation #4 has two parts to it recommending that DNR and                
ADF&G personnel who review the easement notices should consult the             
extensive BLM case files as part of their process and he has found             
that this is occurring when necessary.  He has not heard a                     
consensus on spending a little time on each easement consulting the            
people who live and work in the affected areas.  He thought half               
hour phone calls to the individuals should do for that.                        
                                                                               
SENATOR LINCOLN asked why they didn't add village councils to                  
exhibit two.                                                                   
                                                                               
MR. MARSH said if they aren't getting an individual notice, they               
should, because people who live in an area have the best idea about            
where an easement should or should not go.                                     
                                                                               
SENATOR LINCOLN said she hoped the councils were added, if they are            
not already.                                                                   
                                                                               
MR. MARSH agreed 100 percent.  He said recommendation #5 has to do             
with airport operating agreements and looking at easements as part             
of a total transportation system involving public airports,                    
waterways, as well as access to tracts of public land, some of                 
which are very isolated, and trying to come up with ways to mark               
them.  Unless they are marked, it's very difficult to use them and             
there will be disputes with people using them as to whether they               
are trespassing or within the boundaries of the easement.  The                 
report recommends that it just be part of the contract for                     
maintaining the local airport.                                                 
                                                                               
CHAIRMAN HALFORD asked if there are cases where the easement to the            
airports themselves aren't finalized.                                          
                                                                               
MR. PAUL BOWERS, Director, Statewide Aviation, responded that the              
State has had leases at various airports around the State and some             
of them have expired and the airport is still being operated by the            
State, but clear title is still not resolved.                                  
                                                                               
CHAIRMAN HALFORD asked if there were leases because he thought                 
ANSCA required that the airports be transferred to the State in                
fee.                                                                           
                                                                               
Number 200                                                                     
                                                                               
MR. BOWERS replied that some are transferred and some are not,                 
although ANCSA required it.  Many of the communities have                      
inadequate, substandard airports and they are trying to build new              
airports.  The issue is getting an improved airport that goes                  
beyond the existing airport property line.                                     
                                                                               
CHAIRMAN HALFORD asked him to provide the operative section of the             
Claims Act and a list of the airports that the State doesn't own.              
                                                                               
MR. MARSH said recommendation #6 required more study, but was                  
regarding getting easements marked in local areas by conditioning              
grants involving land use to unincorporated communities or unnamed             
recipients.  He said it was not unusual in traditional subdivision             
platting that there be requirements like dedicating land for                   
drainage, streets, schools, etc.                                               
                                                                               
Recommendation #7 has to do with easement atlases, MR. MARSH said.             
                                                                               
CHAIRMAN HALFORD said as he reads 17 (b) there is no requirement               
for any time frame with regard to their use.  He doesn't see                   
easements disappearing in 2001 or that they must be used.  In fact,            
some of the transfers to the State and the corporations won't even             
have occurred by then.  "Should we be challenging that federal                 
regulation as a matter of policy," he asked.                                   
                                                                               
ATTORNEY GENERAL BRUCE BOTELHO responded that the Unalaska matter              
is an example where the State has filed an appeal and that action              
was pending in front of the Department of Interior, Land Appeals               
Board.  The question deals with the broader issue.                             
                                                                               
MS. JOANNE GRACE, Assistant Attorney General, said she thought the             
proper approach was to appeal any termination of an easement that              
BLM does to the extent we aren't able to convince the Department of            
Interior to vacate that termination.  In a particular case they                
would challenge the regulations in court and maybe make an argument            
that the agency exceeded its authority in providing for termination            
of those easements where the statute didn't provide it.  But they              
wouldn't do it just on the face of the regulations.  As far as she             
knows, the Unalaska case is the only termination that's occurred to            
date.                                                                          
                                                                               
SENATOR HALFORD wondered when the feds adopt a regulation that is              
so blatantly different than the statute, wasn't there a better way             
than waiting  until it bites us before we swat it?                             
                                                                               
MS. GRACE replied in certain cases they need particular facts to               
bring a challenge.  In this case, it may be invalid on its face and            
we could just bring a facial challenge to the regulation as being              
beyond the authority of the agency.  As far as she knows, this has             
only happened once.  So she didn't know how big a problem this                 
would ultimately be, but it is something they could look into.                 
                                                                               
CHAIRMAN HALFORD said he would like something back on whether there            
is some way we can do a more generic approach to that than waiting             
for them to act and then going to court.  He was afraid with a                 
short deadline, everything would happen at once.  He asked if the              
State has cases prior to Gulkana River where the title to the                  
stream bed of a navigable river has been transferred to a third                
party and we don't do anything about it for 20 or 30 years, and                
then somebody decides they are going to do something with that                 
resource.  Are we going to have a very good case, if we say that               
was a fraudulent transfer, the land had already been transferred to            
the State of Alaska?                                                           
                                                                               
MS. GRACE answered that theoretically we would not lose our title              
through the passage of time and theoretically a court would simply             
look at the issue of whether the waterway is navigable under                   
applicable federal standards.  It shouldn't make a difference that             
30 years has passed.  After a long passage of time, maybe 50 - 75              
years from now, a court might sympathize more with a private land              
owner who said to the court that the United State conveyed this                
property to them and that they have used it and the State has never            
asserted an interest in this property.  The court might apply a                
rule of property which says this is the person who has acted like              
he's an owner, and therefore, the court sympathies would be more               
with that person than they may be with the State who never asserted            
title to those navigable waters.  So a private land owner wouldn't             
be able to make that kind of argument if the State is on record as             
determining that waterway to be navigable.                                     
                                                                               
CHAIRMAN HALFORD asked what constitutes a State navigability                   
determination.                                                                 
                                                                               
MS. GRACE said that there is a formal process the State goes                   
through.  The Director of the Division of Lands signs what is                  
called a State navigability determination.   Her understanding is              
that when the public  calls the Department of Natural Resources and            
asks if the waterway is navigable, if the State's response is yes,             
then there's a formal written navigability determination that the              
DNR has conducted.                                                             
                                                                               
Number 390                                                                     
                                                                               
MS. JANE ANGVIK, Director, Division of Lands, said she had members             
of the Navigability Team with her, and directed the committee to               
the Navigability Criteria Evaluation Form, which Ms. Carol Caroll              
should have a copy of.  One of the processes they go through in                
making a navigability determination is to review the factual case              
with respect to a particular water body by the utilization of this             
criteria.  This criteria evaluation is one of the products of the              
Navigability Team since its inception nearly a year and a half ago.            
It is not only used to evaluate the physical data we have in all of            
our files, that is DNR, ADF&G, and DOL, but also used to see if                
it's a good candidate as a possible water body to litigate.                    
                                                                               
CHAIRMAN HALFORD said they have copies of the form.  He asked if               
they do this to a water body that is already transferred and, if               
not, what do they do with a water body that has already been                   
transferred to a third party corporation that is obviously                     
navigable.                                                                     
                                                                               
MS. ANGVIK answered they have not gone back on the pre-Gulkana                 
cases, because they are working forward.  They are evaluating                  
conveyances that are still being made.  They have also made                    
navigability determinations on waterways and water bodies either               
where there is existing management conflict or where there have                
been questions raised either by members of the public, by the                  
mining community, by sportfishing interests or by someone in the               
public. Much or their methodology is predicated on where the demand            
for a navigability determination is requested.                                 
                                                                               
CHAIRMAN HALFORD asked what they tell the public when there's a                
river that has been transferred to a third party that is obviously             
navigable above and below and they ask if they can be there or not.            
                                                                               
MS. ANGVIK replied that it depends on where it is and what the                 
situation is.                                                                  
                                                                               
MR. JIM CULBERSON, Navigability Team, said that he tries to                    
determine whether or not a river has been conveyed.  If it hasn't              
been conveyed, they make an assertion of ownership.  If it has been            
conveyed, he first informs the person that it has been conveyed and            
at the time of conveyance the federal government thought it was                
non-navigable, that the State feels it's navigable, and that it's              
a disputed issue.  It's a possibility that trespass action could be            
brought against them for using the land.  The navigability is a                
defense of the trespass. There is no real clear answer for pre-                
Gulkana decisions.                                                             
                                                                               
CHAIRMAN HALFORD asked for the two or three most potentially                   
contentious of those that were transferred pre-Gulkana.                        
                                                                               
MR. CULBERSON said that the State feels the Arolik River is                    
navigable and that we own it.  That's probably the hottest issue.              
Another one involves the Chuitna River in which case the BLM                   
conveyed half of the river to the Tyonek Native Corporation and                
determined that the other half was navigable.  That created a tense            
situation trying to determine where the middle of the river was and            
who owned what.  The other issue was the Karluk River which has a              
brochure outlining disagreements and public rights.                            
                                                                               
CHAIRMAN HALFORD asked how many pre-Gulkana transfers he thought               
would end up with that kind of conflict when use is increased.                 
                                                                               
MR. CULBERSON said he thought there are about 100 water bodies in              
the State that continually come up where there are conflicts                   
between the owner and the user.                                                
                                                                               
MS. ANGVIK asked how many of those were pre-Gulkana conveyed.                  
                                                                               
MR. CULBERSON said he thought almost all of them were pre-Gulkana              
and that's almost always the issue.                                            
                                                                               
Number 466                                                                     
                                                                               
CHAIRMAN HALFORD said he thought it was a dangerous position to be             
in where both sides thought the law was on their side.                         
                                                                               
MS. ANGVIK said that where there have been flagrant assertions of              
ownership by upland owners.  Troopers have been called in and have             
been able to maintain the peace and the law.                                   
                                                                               
MS. GRACE added that it depends on how the conflict arises.  If                
there's a private civil trespass action between two individuals,               
the State may never know about it.                                             
                                                                               
CHAIRMAN HALFORD asked if he understood correctly that the State               
would not defend the title of the State to the navigable waters on             
behalf of the public citizen that's using it.  He asked what the               
State would do.                                                                
                                                                               
MS. GRACE said she wasn't suggesting the State wouldn't take a                 
side.  She was suggesting that the State might never know about it.            
There are a couple of issues here; one is title to the submerged               
lands and the rights it gives the public and the second is the                 
right the public has to use waterways regardless of who owns the               
submerged lands.  In this State, the public has the right to use               
any  waterway that's navigable under State statute which is very               
broadly defined - essentially anything that's navigable in fact.               
This is a different standard than navigability for title purposes.             
So the State takes the position that the public has the right to               
use the water of any river that's navigable, in fact.  Someone                 
mentioned on Friday that it's not particularly clear what rights go            
along with that.  It's perfectly clear that the public can use the             
waterway, but it's not clear how much of the bed they can use, if              
any or what portage rights they might have.  Things like that.                 
                                                                               
This is something the State would probably welcome litigation on,              
because it's something they want clarified.  The public has the                
right to use any waterway that's navigable in fact and in the right            
case she thought the State would like to get some of the peripheral            
issues of exactly what that means resolved.  If it were a case                 
where we felt we owned the submerged lands, and therefore felt the             
public has the right to use the submerged lands, as they have the              
right to use any State lands, then she presumed the State would                
step in and defend the public's right.  She couldn't promise they              
would, because that is a policy decision, but generally their                  
position is yes, they are here to protect the public's rights.                 
                                                                               
CHAIRMAN HALFORD asked if there was anything in between going to               
court and litigating a hundred different conveyances at the rate of            
two a year for the next fifty years or whatever.  What if by                   
statute the State asserted title as navigable to all submerged                 
lands under any lake larger than X and any river with a flow more              
than X, unless someone can prove otherwise.  He asked if there was             
some way the State can reverse some of the burdens that take                   
forever.                                                                       
                                                                               
MS. GRACE responded that we certainly could do that and she thought            
it would clearly put the public and private upland owners on notice            
as to what the State believes it owns.  It wouldn't determine                  
title.  It would still be open to challenge by private upland                  
owners.                                                                        
                                                                               
CHAIRMAN HALFORD said if we do that now and they don't do anything             
for another 50 years, doesn't that put the court and history on our            
side?  It would be the opposite if we do nothing.                              
                                                                               
MS. GRACE answered that she thought it would. She also thought it              
would be a strong position for the State to say they put the public            
on notice in whatever way 50 years ago.  It might be more flexible             
to have a statute that provides the agencies with some way to                  
declare things rather than have a law that you would have to amend             
every year, because the State would continually be doing                       
navigability determinations.                                                   
                                                                               
CHAIRMAN HALFORD said we're behind by 500.  So we could take the               
first 500 and then the agencies.                                               
                                                                               
MS. GRACE responded that as long as the law made it perfectly clear            
that it wasn't an exclusive list.                                              
                                                                               
SENATOR TAYLOR said he thought it would work.                                  
                                                                               
MS. GRACE said she thought they would want to make it clear that we            
weren't taking title, but asserting what's there.                              
                                                                               
CHAIRMAN HALFORD said they weren't done with this question because             
it weaves itself all the way along.  He asked if there were any                
other questions on recommendations five, six, and seven.                       
                                                                               
MR. MARSH responded that he thought seven was misunderstood.  They             
were simply indicating that the atlases have real limited                      
potential, given the limited State resources and constantly                    
changing easements and to consider putting them on USES maps and a             
host of other publications.  His understanding from talking to Ms.             
Shobe is that she's in the process of trying to implement this.                
                                                                               
Number 566                                                                     
                                                                               
SENATOR LEMAN asked if the Department could make information                   
available electronically, because even commercially available maps             
were changing too fast.                                                        
                                                                               
MS. MARSH said to the extent that people have access to Internet or            
can physically come into navigability central in Anchorage at DNR              
that's very viable and is probably the way to get the very most up-            
to-date information.  It depends on people throughout the State                
having access to the Internet and being friendly with using it.  It            
also depends on some government agency having the resources to                 
continually update the information that's kept on the Internet.                
                                                                               
MS. ANGVIK added that there are three easement atlases that are                
digitized - Kodiak, Prince William Sound, and Kenai as well as the             
navigability map which is in digitized format.  All of this                    
material will eventually be available on our website.  The                     
intention is that anything we have in electronic form will be                  
available to the public as widely as the State can disseminate it              
as quickly as they can.                                                        
                                                                               
SENATOR LEMAN asked if it made sense to make it available as soon              
as possible and to quit printing the documents that soon go out of             
date.                                                                          
                                                                               
MS. ANGVIK replied that they are all in favor of making it                     
electronically available as soon as possible, but there are still              
parts of the State that are not digitized.  She agreed that it is              
a lot easier to update the digitized record than the written                   
record.                                                                        
                                                                               
TAPE 98-5, SIDE B                                                              
                                                                               
CHAIRMAN HALFORD said it looks like BLM requires an invitation from            
the affected corporation prior to marking the easements on that                
corporation land.  Why would a corporation want to mark easements,             
like Chugach did, unless they were obvious and in use.  He asked               
for someone to describe how the feds do it now and show the                    
committee an example of a vacation application in Unalaska.                    
                                                                               
MS. ROBIN WILLIS, Access Defense Manager, explained that they have             
been requesting marking of easements in a variety of areas.  When              
they wrote a letter to BLM requesting that they mark easements, in             
this instance, along the Karluk River, the response they got was               
that the corporations were required to make an invitation for them             
to be a party to the actual location of the easement and that one              
of the upland owners in that particular area was not particularly              
interested in getting the easements marked and the State didn't                
have any recourse in that particular location.  The attempts they              
have made at requesting marking have occurred.                                 
                                                                               
CHAIRMAN HALFORD said if there is a requirement that they be used              
and documented somewhere prior to 2001, and if the person who owns             
the underlying title can not tell you where it is so that you can't            
use it or document it, it seems like all the cards are on one side             
of the table.                                                                  
                                                                               
MS. WILLIS said that was their impression, too, and they haven't               
found a way around it.                                                         
                                                                               
SENATOR TAYLOR asked if the Public Trust Doctrine meant nothing.               
                                                                               
MS. GRACE answered that there is a jurisdictional problem, if he is            
suggesting the State file suit against the federal government to               
force marking of 17 (b) easements.  When the State files suit on               
behalf of the public, the Ninth Circuit holds that it can't file               
suit against the United States, because the United States                      
ultimately has the public's interest at heart.  The State,                     
therefore, doesn't have standing to file suit against the United               
States.                                                                        
                                                                               
CHAIRMAN HALFORD asked if that was common to all circuits.                     
                                                                               
MS. GRACE answered that it is black letter law.                                
                                                                               
SENATOR TAYLOR said they were not talking about the federal                    
government, but the upland owner, especially along the Karluk                  
River.                                                                         
                                                                               
MS. GRACE said she didn't know the answer, because she hadn't                  
looked into the issue.  There would be a question of whether the               
upland owner has a duty to mark 17 (b) easements.                              
                                                                               
CHAIRMAN HALFORD said that section 17 (b) is pretty short and a lot            
is hanging on that.  It seems like it would be worth seriously                 
researching, at least, action against the apparent statute of                  
limitations that they're tying into these easements that they don't            
want us to know about, mark, or use and which will thereby                     
disappear under their regulations.                                             
                                                                               
SENATOR TAYLOR said he is informed that along the Karluk River                 
there is a trail that goes from Larson Bay over the ridge and all              
the way down the Karluk River and that trail has been used                     
historically probably for millennia.  He has walked part of it                 
himself and didn't have any difficulty in determining where it was.            
It would seem if our personnel wanted to mark that,  they couldn't             
be excluded by the upland property owner.  Are we just asking                  
people if they would like us to come on the land and if they say               
no, we don't do anything or are we attempting to assert these                  
rights and failing to take to court or to use such other action as             
may be necessary to assert these rights, he asked.                             
                                                                               
MS. WILLIS pointed out that in the area of Soldovia, BLM went out              
to  mark easements and had a community meeting and before they                 
could mark them, they were informed they would be cited for                    
trespass and put into jail if they tried to mark the easements,                
because they would have to go across private property to get there.            
As a result, BLM decided to go home without marking the easements.             
They are the managing agency for the 17(b) easements as they exist.            
The  State doesn't even have ownership management authority on                 
those easements at all.  So marking them is even more difficult for            
us than it would be for the federal agencies.                                  
                                                                               
CHAIRMAN HALFORD asked if they were told they would be put in jail             
for trespass on private land not subject to the easement to get                
across to the easement or was it on the private land that was                  
subject to the easement itself.                                                
                                                                               
MS. WILLIS answered that it was private property that needed to be             
walked across in order to get to where the 17 (b) easement was to              
be marked.                                                                     
                                                                               
CHAIRMAN HALFORD said the 17 (b) has to be by definition connected             
to pubic property from some direction or other - either by a public            
waterway or property.  It seems the BLM people should have just                
used the other way.                                                            
                                                                               
MS. WILLIS explained that they were approached and decided against             
proceeding.  She knew that BLM had tried to mark easements where               
there was confusion and have been deterred by a variety of methods             
and that was one of them.                                                      
                                                                               
CHAIRMAN HALFORD asked her to send him documentation of them being             
deterred.                                                                      
                                                                               
SENATOR SHARP asked if a public easement can only be marked by a               
government agency or can it be marked by anyone considered public.             
                                                                               
MS. WILLIS explained that the federal agencies are the managers of             
the 17 (b) easements, so BLM, Fish and Wildlife Service, Park                  
Service, or Forest Service are traditionally the agencies                      
responsible for marking and managing the easements.  They                      
traditionally request that the private upland owner accompany them             
in the process and on occasion the State is invited to assist.                 
                                                                               
SENATOR LEMAN asked if it was correct that they either mark it                 
themselves or do they have someone under contract who marks it.                
                                                                               
MS. WILLIS said that was correct.                                              
                                                                               
CHAIRMAN HALFORD asked Ms. Willis to go over the specifics of the              
Unalaska case.                                                                 
                                                                               
MS. WILLIS explained that the road system in Unalaska was created              
in the 1940's by the military and the Corporation received title to            
the land prior to the Andress litigation which had to do with                  
whether continuous shore line and stream side easements were                   
reserved or not.  That decision was made in 1978 and was in a                  
transitional phase until 1979 at which point they came up with the             
current regulations which include periodic site easements rather               
than continuous shore line easements.  She said the overview before            
the Committee is intended to show them there is no access between              
downtown and Humpy Cove.  The only access the public has to public             
lands are the simple easements they see on the map. The portion of             
the road that's between Summer Bay and Humpy Cove was conveyed                 
during the transition between the discussions for Andress on                   
continuous versus periodic points.  It was not part of the groups              
of conveyances for which there was a conformance where you replaced            
continuous shore line easements with periodic site easements.                  
Consequently, the road going to Humpy Cove didn't have a site                  
easement and the Fish and Wildlife Service has that as one of their            
justifications for terminating this easement, because they say it              
does not access public waters.  In fact, the patent says it goes to            
the public waters of Humpy Cove.                                               
                                                                               
MS. WILLIS said they have done a lot of work with the community and            
they are very concerned about not being able to get to their                   
favorite recreational areas.  There are only five salmon streams in            
the location where they can fish and get subsistence fish.  They               
requested that the State protect their interests and they are                  
attempting to do so.  This is in the middle of litigation. This is             
a termination requested by Fish and Wildlife Service of an                     
easement, because it doesn't have a site easement associated with              
it.  It is clearly something that has been used for a very long                
time by the community and is still very important to the locals.               
                                                                               
MS. ANGVIK added that they have officially appealed this action and            
the BLM has also disagreed with the Fish and Wildlife Service.                 
                                                                               
CHAIRMAN HALFORD asked if the State owned all the tide and                     
submerged land on the shore line in that area.                                 
                                                                               
MS. WILLIS answered no, the tidelands were conveyed to the town of             
Unalaska, although a 50 ft. wide public easement was reserved along            
the coast for purposes of public access, similar to a public trust.            
                                                                               
CHAIRMAN HALFORD asked if the land was conveyed to the State at                
statehood and the State conveyed it further to the local                       
government.                                                                    
                                                                               
MS. WILLIS said that was correct.                                              
                                                                               
CHAIRMAN HALFORD said it was obvious that it was public land and               
public access.  He asked if the allotment at Morris Cove cut off               
the road that goes over to Alangik Bay.                                        
                                                                               
MS. WILLIS said it does, except within the allotment they reserved             
a 25 ft. trail easement so people can legitimately walk along that             
trail to Alangik Bay.                                                          
                                                                               
CHAIRMAN HALFORD asked if that was a trail or a road now.                      
                                                                               
MS. WILLIS said that it's a road up to the allotment, a trail                  
through the allotment, and it's not really even a marked trail to              
Alangik Bay.                                                                   
                                                                               
CHAIRMAN HALFORD asked if the allotment preceded the trail, then.              
                                                                               
MS. WILLIS answered that it did.                                               
                                                                               
CHAIRMAN HALFORD asked if there were any other cases where they                
were notifying her of action on potentially vacating a 17 (b)                  
easement.                                                                      
                                                                               
MS. WILLIS answered there were a number of places where they have              
litigation outstanding like Afognak Island where the State believes            
there are two large lakes that are navigable.  The only easements              
that were reserved were two site easements and they want to                    
terminate those, because of their feeling that they are non-                   
navigable water bodies.                                                        
                                                                               
CHAIRMAN HALFORD asked how large the lakes were.                               
                                                                               
MS. WILLIS answered that they were 400 - 500 acres.                            
                                                                               
CHAIRMAN HALFORD asked if the federal government transferred the               
submerged lands under those lakes.                                             
                                                                               
MS. WILLIS answered they were meandered out under survey rules, so             
they didn't convey them, but they have riparian rights associated              
with them as the upland owner.                                                 
                                                                               
CHAIRMAN HALFORD asked if there was any federal withdrawal that                
preceded statehood in those cases.                                             
                                                                               
MS. WILLIS answered that she didn't believe so.                                
                                                                               
MR. CULBERSON added that there was a withdrawal for a fish culture             
preserve that predated the forest and then there was a forest                  
withdrawal.  Both of those were prestatehood and that was their                
justification for not recognizing the State's ownership in the                 
submerged lands.                                                               
                                                                               
CHAIRMAN HALFORD asked if that was what was necessary to beat us on            
those.                                                                         
                                                                               
MR. CULBERTSON answered there was first a fish culture preserve on             
Afognak Lake, which probably related to the Lake.  That was later              
revoked and replaced by a forest reserve that didn't have the                  
withdrawal attribute of the other court cases.  This particular                
case has both scenarios.                                                       
                                                                               
Number 380                                                                     
                                                                               
SENATOR TAYLOR asked what is motivating the Fish and Wildlife                  
Service.                                                                       
                                                                               
MS. WILLIS answered that they have difficulty managing easements               
that are not close to where their units are located.  This one is              
managed out of Palmer, the Corporation is probably frustrated that             
they can't have more management taking place on the easement.  Fish            
and Wildlife Service doesn't have anyone locally to do it.                     
                                                                               
SENATOR TAYLOR said the information he had was that the community              
was maintaining the road.                                                      
                                                                               
MS. WILLIS replied that the community maintains the road at least              
out to Summer Bay itself, but it doesn't maintain it to Humpy Cove.            
                                                                               
MS. ANGVIK explained that the issue for the private upland owners              
is that the public is trespassing on their uplands by way of that              
road.  They are the ones who have persuaded Fish and Wildlife                  
Service that the easement is causing the public to trespass on                 
their private lands.                                                           
                                                                               
SENATOR TAYLOR asked who was the upland owner.                                 
                                                                               
MS. WILLIS answered Unalaska Corporation.                                      
                                                                               
MS. ANGVIK said while this has all been under discussion of the                
navigability program, it's within the Realty Service Section and is            
funded out of the general fund and isn't funded by the Navigability            
Program.  It isn't included in the scope of waterway issues.                   
                                                                               
CHAIRMAN HALFORD thanked her for that clarification. He asked the              
Department of Law if there was anything, including money, stopping             
the State from marking 17 (b) easements should we choose to do so.             
                                                                               
MS. SHOBE answered that at any time any of the federal agencies                
involved could transfer management of the easement to the State.               
Easement management regulations were never completed back in 1983              
and are part of a holding draft pattern.  Because of the cost this             
would be a horrendous task, but it could be done if we want to do              
it.  All we have to do is ask the federal agencies involved.                   
                                                                               
MR. MARSH added that this is one of the major issues of the audit              
that the easements are unmarked in many cases and it's hard for the            
public to locate them and hard to use them.  He understands from               
talking to BLM that any time the State would like to take over                 
easement marking, they can do so both legally and with BLM's                   
blessing.  However, that is an expensive cross to bear.  From a                
practical perspective, it's hard to mark things against people's               
will and maintain that marking.  The practical solution from the               
auditor's perspective is to get the land owners to contract with               
the State as a condition of various services to just mark the                  
easements and maintain the marking in a routine manner as a                    
condition of getting things they want in return from the State.                
                                                                               
CHAIRMAN HALFORD said particularly for easements between the                   
airport and the river, DOT ought to be able to maintain the 600                
yds. down to the river.                                                        
                                                                               
SENATOR LINCOLN noted there were two corporations which were not               
listed with the native corporations that have a 17 (b) agreement               
with the Department of Interior.  She asked Mr. Marsh why and asked            
for an explanation of those which had received patent and owe the              
17 (b).                                                                        
                                                                               
MR. MARSH said he didn't produce the list.                                     
                                                                               
CHAIRMAN HALFORD said that was from Division of Water and the                  
discussion was in the context of if the State lost the court case              
on continuous shore line easements, and he could see why they did,             
then the corporations had agreed to come back and grant                        
discontinuous easements for the same purposes.                                 
                                                                               
MR. CULBERSON said he pulled this list from a case file that was               
submitted to them by BLM in 1983 as part of a proposal for their               
two phase process.  The first phase of the process was to terminate            
the [indisc] easements and the second phase was to acquire the                 
donations.  It may be that this list only contains conveyances that            
had illegal easements that were being terminated as opposed to all             
conveyances that may have been subject to the agreement.  It's                 
possible that BLM made an error in preparing the list.                         
                                                                               
MS. ANGVIK said that probably the critical issue is  the second                
list where the final patent has been conveyed to the corporations.             
Now it's between them and BLM with respect to where the 17 (b)                 
easements are.                                                                 
                                                                               
CHAIRMAN HALFORD questioned the resource agencies of the State, if             
there was a record of correspondence and have we asked BLM to                  
follow up on those conveyances and get those easements.                        
                                                                               
MR. CULBERSON answered that yes they have and BLM gave priority to             
some of the conveyances until they initiated the "patent plan                  
process."  At the time they decided they were only going to deal               
with conveyances in areas where they were doing surveys which is               
the way they have focused their budget.  They only address easement            
issues in areas where they intend to go in the next field season               
and do on the ground surveys.                                                  
                                                                               
CHAIRMAN HALFORD asked if they do allotments and easements at the              
same time.                                                                     
                                                                               
MR. CULBERSON said that is correct.                                            
                                                                               
CHAIRMAN HALFORD asked if they mark the easements when they do                 
them.                                                                          
                                                                               
MR. CULBERSON said no.  The mission of the BLM is to convey land               
and in order to do that, they have to survey it.  Marking 17 (b)               
easements is not part of the process.                                          
                                                                               
CHAIRMAN HALFORD responded that the federal law the land is                    
conveyed under says the easements shall be reserved and if they are            
conveying the land without the easements, they are violating the               
federal law; and if the easements aren't there in the initial                  
conveyance, they can never be added.  He asked if anything he said             
was wrong.                                                                     
                                                                               
MR. CULBERSON replied that the initial conveyance has a paragraph              
in it that says they have right under the easement agreement to                
come back in and reserve the easement at a later date.                         
                                                                               
CHAIRMAN HALFORD said that may be better than having easements that            
are going to be canceled in 2001.                                              
                                                                               
MS. SHOBE added there was an agreement with almost all the                     
corporations with the Secretary of Interior during the period of               
time of the litigation that finally resulted in saying that coast              
line easements were invalid.  Each one of the interim conveyances              
(i.c.) had the language in it that says they can come back and                 
"donate" the site easements.  She asked BLM today about why they               
aren't doing this as a special project and they said it is under               
their patent plan process of trying to focus their staff in one                
general area and to move forward on their main goal.  They are                 
reserving the easements, but they just aren't marked.                          
                                                                               
SENATOR TAYLOR asked if they were marked on some kind of plat or               
graph or are they just including some generic paragraph that at                
some date in the future they may come back to ask for this                     
easement.                                                                      
                                                                               
MS. SHOBE said on the situations that Mr. Marsh has brought up                 
where they have to conform under the Andress agreement, there is a             
paragraph in the specific i.c. that says they can come back and do             
it, but on every single i.c. and patent there is a topographical               
map that BLM puts together on a 1 to 6,300 scale with a line drawn             
to indicate a site or trail easement.  That is not on the official             
record; it is with the file and with the documents conveyed to the             
native corporation.  The State gets a copy of it, and that's the               
basis for the easement atlases.  If the corporation chooses to                 
record their conveyance document and  attaches the maps, it is in              
the recorder's office.  That is the only public notice that BLM                
has.                                                                           
                                                                               
CHAIRMAN HALFORD asked if that would constitute notice to a third              
party that 15 years later contests the existence of an easement on             
land that they bought from one of the native corporations.                     
                                                                               
Number 140                                                                     
                                                                               
MS. GRACE said she wasn't familiar with the i.c. paragraph and                 
asked if they have the option of recording with the map.                       
                                                                               
MS. SHOBE answered that Alaska is a nonmandatory recordation state,            
so if they want to pull those maps off of their conveyance                     
documents, they do not need to record them.  Because sometimes they            
are unwieldy and it costs per page to record them and they need to             
be broken down, a lot of the maps were not recorded, but she has               
copies of them.                                                                
                                                                               
CHAIRMAN HALFORD asked if 15 years down the road a corporation                 
sells a 20 acre parcel to a third party, who then after a period of            
10 years develops and utilizes this parcel of ground fully and goes            
to get title insurance, does the title insurance company insure                
title to that parcel with no easements shown.                                  
                                                                               
MS. SHOBE answered that she hoped the title companies would have               
had this information and would not give a title policy out that                
would include such an easement.                                                
                                                                               
CHAIRMAN HALFORD asked where they would get the information.                   
                                                                               
MS. SHOBE answered they can get it many ways.  Most title companies            
have copies of the 163 maps.                                                   
                                                                               
MR. CULBERSON explained that normally the process a title company              
would use in doing a title search is that it is subject to all the             
reservations in the federal patent which contain 17 (b) easements.             
It would be the responsibility of the person receiving the title               
report to go to BLM and look at the reservations in the patent.                
                                                                               
SENATOR TAYLOR said he was fascinated by the name of "Statehood                
Defense Unit."  He asked how many were in the unit.                            
                                                                               
MS. GRACE explained that their funding was not broken down person              
by person.  When the attorneys work on a statehood defense matter,             
they charge that to statehood defense money.                                   
                                                                               
ATTORNEY GENERAL BOTELHO explained that a study Senator Taylor was             
referring to was a study done in the first year of this                        
administration.  Essentially, 27 attorneys were to participate on              
various committees and look at the consequences of various issues              
involving native governments in the State.  They are now in front              
of the Supreme Court and will have a decision in the next several              
weeks to three months.                                                         
                                                                               
SENATOR TAYLOR asked if there was any involvement in RS 2477's or              
17 (b).                                                                        
                                                                               
ATTORNEY GENERAL BOTELHO said not in that exercise.  RS 2477 is an             
ongoing issue and is billed against statehood defense.                         
                                                                               
SENATOR SHARP asked how many right of ways were transferred and                
sold for the Exxon Valdez back to a government agency.                         
                                                                               
CHAIRMAN HALFORD said some of those became State lands.                        
                                                                               
MR. MARSH said it was their suggestion that the legislature study              
basin wide adjudication further, because it is already in statute              
and has the potential to resolve some long term water related                  
issues.  This is a study type issue and was meant to be an                     
alternative to the federal government having a rather bad attitude             
about attempting to settle these things without long term                      
litigation.                                                                    
                                                                               
The potential for basin wide adjudications is that it settles                  
various rights over an entire river system or hydrologic unit of               
which there are six in the State.                                              
                                                                               
MR. MARSH said the remaining recommendations were narrow in scope.             
Number 9 was advice for the record for people who put obstructions             
across navigable waterways and what ought to be done about this                
problem.  Some people suggested criminal prosecution.                          
                                                                               
TAPE 98-6, SIDE A                                                              
Number 001                                                                     
                                                                               
They further recommend in #10 that peace officers have the                     
authority to enforce injunctive orders that are obtained.  The                 
final recommendation was where some State employees were doing                 
water management duties and were interfered with in their access to            
navigable waterways and the adjacent land.  The statutes provide               
for a land surveyor and private employment to have the ability to              
go on to land to execute their function.  They saw no reason to not            
have the same rights for waterway management employees of the                  
State.                                                                         
                                                                               
ATTORNEY GENERAL BOTELHO said they concurred with recommendations              
well, like in consumer protection.                                             
                                                                               
MR. MARSH said his remarks were well taken in the enforcement of               
municipal zoning ordinances at the local level.  Frequently private            
citizens will have the right to pursue what they think is a zoning             
violation in their neighborhood.                                               
                                                                               
CHAIRMAN HALFORD said he would like to come to some conclusions                
that produce a product.  The expertise and interest are in the                 
state departments, the native corporations, and the general                    
population.  The other thing to do would be to pay native                      
corporations to mark the easements, if they are already delineated.            
He said there are two issues he is going to work on this session -             
RS 2477's and navigability and the pieces of public access around              
them that give us a chance to enjoy the resources of the State.  He            
said he would like any suggestions possible.  He thought there had             
to be some middle ground and that we couldn't afford to wait                   
forever.                                                                       
                                                                               
CHAIRMAN HALFORD adjourned the meeting at 5:25 p.m.                            

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