Legislature(1997 - 1998)

02/25/1998 03:37 PM Senate RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
              SENATE RESOURCES COMMITTEE                                       
                  February 25, 1998                                            
                      3:37 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                                                             
                                                                               
Confirmation Hearings:                                                         
                                                                               
Ms. Mary McDowell, Commercial Fisheries Entry Commission                       
Mr. Robert Curchill, Board of Game                                             
Mr. Peter Garay & Mr. Michael White, Board of Marine Pilots                    
Ms. Camille Oechsli, Alaska Oil and Gas Conservation Commission                
                                                                               
ACTION NARRATIVE                                                               
                                                                               
TAPE 98-14, SIDE A                                                             
Number 001                                                                     
                                                                               
CHAIRMAN HALFORD called the Senate Resources Committee meeting to              
order at 3:37 p.m.                                                             
                                                                               
MS. MARY MCDOWELL, Commercial Fisheries Entry Commission, said she             
has a background that has prepared her for this job and reviewed               
her resume' for the committee.  She thought it important for Entry             
Commissioners to be fair-minded and objective, to have good                    
understanding of how fisheries work, and be able to work with all              
kinds of people with diverse backgrounds.                                      
                                                                               
SENATOR LEMAN said he appreciated the work she has done over the               
years in fisheries issues and noted he might be perceived as having            
a conflict of interest since he is the holder of a commercial                  
fishing license.                                                               
                                                                               
SENATOR SHARP asked how many people are on the Commission.                     
                                                                               
MS. MCDOWELL answered three full-time paid commissioners.                      
                                                                               
SENATOR LINCOLN noted for the record that she has the exact same               
card that Senator Leman has, a setnet card for 1998.                           
                                                                               
CHAIRMAN HALFORD asked how an enforcement system that would devalue            
the permit as the record of violations increased would work in                 
terms of the Commission.                                                       
                                                                               
MS. MCDOWELL said the Commission has been working closely with the             
House Committee on HB 285 to come up with something that would be              
enforceable and workable.  They have removed the part that would               
actually devalue the permit at a certain point.                                
                                                                               
CHAIRMAN HALFORD said if the violations travel with the permit,                
someone who is an aggressive line fisherman, who thinks he might               
get caught, would pay less for a permit that has only one more                 
strike as opposed to one that has three strikes.  He didn't mean               
that the Commission necessarily does the devaluation, but he                   
thought the marketplace might do it.                                           
                                                                               
MS. MCDOWELL said the Commission would have to keep track of the               
demerits by getting information from the Department of Public                  
Safety and the Court System.  She said it's tougher to make it work            
with the traveling demerits.  There are various kinds of permits               
that would have to be noticed at every transaction.  A computer                
system would be needed to keep track of all of everything.                     
                                                                               
CHAIRMAN HALFORD said some Supreme Court opinions dealing with                 
equal access have referred, sometimes obliquely, to limited entry,             
and there have been some statements made in those opinions that the            
primary reason limited entry is not in conflict with other                     
provisions of the Constitution is the conservation section that                
allows for the elimination of permits.  He asked if she saw any                
danger to the system in a Constitutional challenge, because they               
have taken no action to eliminate permits.                                     
                                                                               
MS. MCDOWELL said that they had looked at the buy back program                 
provisions, because there is a lot of interest in it now. There is             
a problem with the current buy back statute in the way the                     
dedicated fund is set up.  However, there should be legislative                
ways to get around that and the other problem is the John's case               
and equal access.  Supreme Court cases have pointed out that there             
are ways to add permits to fisheries, but it's very difficult to               
take them back out.  If you did take permits back out of a fishery,            
if there's a challenge later on equal access, you might be forced              
to put them back in.                                                           
                                                                               
CHAIRMAN HALFORD said unless something is done at some point, the              
justification that the Supreme Court used for holding that limited             
entry was constitutional will no longer be there.  He thought this             
should be a significant consideration.                                         
                                                                               
SENATOR TAYLOR said that each of the moratoriums, the most recent              
being the dungeness crab, were a mess.  He asked if the Commission             
was ever going to start acting like a commission and going out and             
saying this is a limited fishery and that they were exercising the             
authority they have based upon a logical realistic basis.                      
Number 205                                                                     
                                                                               
MS. MCDOWELL responded that she appreciated the frustration.                   
Emerging fisheries are developing so quickly, because people are               
trying to get into new fisheries as the old ones don't support them            
any more.  The moratorium statutes are so cumbersome that it is                
very difficult to act quickly enough when something is happening               
that fast.  The limited entry statutes were designed with salmon               
fisheries in mind, so they are hard sometimes to apply to the other            
fisheries.                                                                     
                                                                               
The Commission has a bill before the legislature right now to                  
streamline the process. The problem with the threat of a moratorium            
is that speculators do jump in.  She said there are trade-offs in              
any scenario.  She said that over half of the permits in the                   
dungeness fishery are transferable.                                            
                                                                               
CHAIRMAN HALFORD asked why any permits should be transferable.                 
                                                                               
MS. MCDOWELL said the legislature struggled with that question when            
they first enacted the limited entry statute and the main reason               
for that was to establish a system that was constitutional, would              
meet interstate commerce laws, and still favor Alaskans.  She noted            
that 77 percent of the permits still belong to Alaskans today.                 
                                                                               
CHAIRMAN HALFORD asked what percent of the total gross permit value            
is still in Alaska.  He thought it was substantially less than 77              
percent.                                                                       
                                                                               
MS. MCDOWELL responded that the fisheries that are extremely high              
percent of Alaskans are small fisheries.  She said one of the                  
arguments used in enacting this is that people who have a financial            
stake in the fishery may have a larger interest in the long term               
health of the fishery and sound management over the long term.                 
                                                                               
The Legislature by statute gave the Commission the responsibility              
to determine what constitutes a significant economic hardship and              
a minor economic hardship.  In establishing point systems, the                 
Commission figures out a system based on years of participation,               
quantities sold, consistent participation, ownership of a vessel,              
comparing fishing income with other incomes, etc.  The law says if             
they hit the minor economic hardship level, that permit would be               
nontransferable.                                                               
                                                                               
CHAIRMAN HALFORD reiterated that he would not vote to help, in any             
way create any transferable permit, to add more artificial value to            
the debt load of permit holders.  He thought that at some point,               
the legislature or voters by initiative will repeal transferable               
permits.                                                                       
                                                                               
SENATOR TAYLOR moved to send the standard letter to the Joint Body             
of the Legislature regarding Ms. McDowell.  There were no                      
objections.                                                                    
                                                                               
Number 333                                                                     
                                                                               
MR. ROBERT CHURCHILL, Board of Game, said he had hunted and fished             
since he was 11 years old.  He reviewed his resume' for the                    
Committee.  The reason he wants to be appointed is because he has              
hunted all his life and he wants to pay back the benefits he has               
received.  Hunting needs strong advocates and teaches good life                
lessons to the people who participate in it.                                   
                                                                               
SENATOR LINCOLN asked him to comment on the Alaska Resources                   
Consulting Group which he owns.                                                
                                                                               
MR.CHURCHILL answered that basically he is the group and he does               
work in labor relations and human resources aspects and about three            
years ago he had people requesting him for assistance, so he                   
established a business.  Last year, due to time constraints, he                
didn't put a lot of time into it.  He worked for small businesses              
that could not afford a human resources staff.                                 
                                                                               
SENATOR LINCOLN asked if he was planning to work around the many               
days he would being working on the Board with his employer.                    
                                                                               
MR. CHURCHILL said he has talked it over with his family and his               
employer and feels confident that will not be an issue.                        
                                                                               
SENATOR LINCOLN asked if he had hunted in the Interior and                     
Southeast and asked what kind of hunting he did.                               
                                                                               
MR. CHURCHILL replied that he does some moose hunting and upland               
birds; he has hunted as far north as the Fairbanks area.  He hasn't            
been in units 23 or 26.                                                        
                                                                               
CHAIRMAN HALFORD asked which areas he had hunted in since he has               
been a resident.                                                               
                                                                               
MR. CHURCHILL said he had hunted the Kenai Peninsula, the greater              
Anchorage area, and most of the Parks Highway.                                 
                                                                               
SENATOR LEMAN asked if he had any thoughts about what should be                
done in unit 13 and off-road vehicles.                                         
                                                                               
MR. CHURCHILL replied that he was asked to co-chair a group of                 
hunters regarding this issue.  They have met twice and it seems                
there is a real lack of education among new ORV users.  It doesn't             
seem to be a problem of people maliciously tearing up the                      
countryside.  They have talked about working with the ORV industry             
and putting a good video together on good techniques for their                 
usage.  One of the limiting factors right now is that there are                
only so many places you can park your rig and take your ORV out.               
There also doesn't seem to be a good general knowledge of ORV                  
trails.                                                                        
                                                                               
CHAIRMAN HALFORD asked if he thought regulation of means of access             
should be one of the ways Boards should use to control the level of            
harvest.                                                                       
                                                                               
Number 425                                                                     
                                                                               
MR. CHURCHILL answered in certain circumstances it could be used.              
It's probably more easily dealt with by using seasons and bag                  
limits.                                                                        
                                                                               
CHAIRMAN HALFORD asked what he thought about allocation between                
hunting groups.                                                                
                                                                               
MR. CHURCHILL answered that they had to keep things fair.                      
                                                                               
SENATOR SHARP asked how many Board meetings he had attended and                
participated in.                                                               
                                                                               
MR. CHURCHILL answered Nome, Bethel, and ORV meeting.                          
                                                                               
SENATOR GREEN asked if the Legislature received a lot of                       
information from him last year.                                                
                                                                               
MR. CHURCHILL answered that he had given them a lot of information             
on Ms. Nicole Evans, Anchorage Advisory Committee.                             
                                                                               
SENATOR TAYLOR asked him to explain his position on consumptive use            
and management of predators.                                                   
                                                                               
MR. CHURCHILL said one of the first things he was involved in was              
the predator control plan with the Anchorage Advisory Committee.               
Predators eat a lot of ungulates and if they want those populations            
to recover, they have to be dealt with.  One of the surprising                 
things he found was in order to really make a reduction in a wolf              
population, you have to knock down over 60 percent of the                      
population.  It's complex, but wolves are probably the easiest                 
predator to manage.  There are groups in the State that have                   
managed them for a long time.  Bears are more difficult because of             
counting them and their reproductive cycles.  The other predator               
they deal with taking caribou are eagles which he wouldn't touch               
with a 10 foot pole.                                                           
                                                                               
Number 468                                                                     
                                                                               
SENATOR TAYLOR asked how effective the neutering system is with the            
wolves.                                                                        
                                                                               
MR. CHURCHILL said he is really unfamiliar with that system; the               
only one that he has dealt with is hunting with a rifle or actively            
trapping.  He didn't think there was enough evidence to clearly                
establish what would happen with neutering and moving wolves.  He              
thought the Board had to be biologically driven and economically               
conscious.                                                                     
                                                                               
SENATOR TAYLOR mentioned that he had helped take wolves around the             
40 Mile herd and he thought that was extremely effective.                      
                                                                               
MR. CHURCHILL added that they took a very large number of wolves,              
about 60 percent.                                                              
                                                                               
SENATOR LINCOLN asked him to clarify when he became a resident.                
                                                                               
MR. CHURCHILL said he moved up late in 1986 and wasn't eligible                
until 1987 to be a resident.                                                   
                                                                               
SENATOR LINCOLN asked if he was a trapper.                                     
                                                                               
MR. CHURCHILL answered that he has a trapping license so he can                
take fur bearers when he hunts.  He hasn't actually been on a trap             
line.                                                                          
                                                                               
SENATOR TAYLOR asked what his views were on using the Fish and Game            
Advisory Committees in solving issues that come before the Board.              
                                                                               
MR. CHURCHILL answered that he thought it was a good way to get                
information from the communities.  The average citizen shows up at             
a lot of those meetings.  He thought they are great; they are all              
volunteer.  It's a good return on value and they get good                      
information.                                                                   
                                                                               
CHAIRMAN HALFORD asked what was the projected cost per wolf on the             
sterilization program.                                                         
                                                                               
MR. CHURCHILL said he couldn't answer that.  The 40-Mile plan was              
worked out before he came to the Board.  The only thing he can                 
remember is a request for an agenda change.                                    
                                                                               
SENATOR TAYLOR asked for his thoughts on making regulations for                
every complaint they hear.                                                     
                                                                               
Number 550                                                                     
                                                                               
MR. CHURCHILL said the ORV issue was portrayed by some to be                   
chronic.  The Board met and no one provided any evidence that there            
was a chronic conflict.  There haven't been any regulations                    
implemented and have tried to resolve the issue in other ways.                 
There needs to be good information to establish a conflict.                    
                                                                               
TAPE 98-14, SIDE B                                                             
                                                                               
SENATOR GREEN moved to send the standard letter to the Joint Body              
of the Legislature regarding Mr. Churchill.  There were no                     
objections and it was so ordered.                                              
                                                                               
MR. PETER S. GARAY, Alaska Marine Pilots, said the pilotage his                
group services is west of Kodiak Island to the end of the Aleutians            
and up to the Canadian Arctic border. He reviewed his resume for               
the Committee.  He said this appointment is an honor for him.  He              
looks forward to participating in discussions that promote a safe              
and efficient system of marine pilotage in Alaska.                             
                                                                               
He said he is inheriting a Board where things are working smoothly.            
Problems are being resolved within the existing framework.  He                 
thought it was important that former Board member, Mike O'Harick,              
was  still attending meetings to help his transition.  Some of the             
projects he is working on are competency assessment and pilot                  
performance evaluation.  These are substantial projects that should            
make a better product.  In the past pilots could go for 20 - 30                
years and never have to open their tool bag; now they are opening              
them up.  There is an RFP out for a simulator and there have been              
constructive discussions about the performance evaluation and how              
each pilot group will implement that.                                          
                                                                               
MR. GARAY said he came to realize it was important for people like             
him who have the experience to take part in the affairs of their               
business.  He briefly expounded on his experience sailing around               
the world on different ships and assessing and handling difficult              
personnel situations.                                                          
                                                                               
CHAIRMAN HALFORD asked what he thought about single port pilotage              
in Alaska.                                                                     
                                                                               
MR. GARAY said he didn't think it would work, because there are                
sporadic traffic patterns where for a three week period (in Kodiak,            
for example)there would be 20 ships  and then nothing else for the             
rest of the year.  Likewise for the Pribiloffs where there's six               
weeks of intense activity.  There is only one port that sustains               
year-round activity and that's Dutch Harbor.                                   
                                                                               
CHAIRMAN HALFORD said he asked because he wants to provide benefits            
to local people.  There are local people who know their ports very,            
very well, but have no interest and wouldn't have the ability to               
serve as pilots in any other place.  A system that is region-wide              
makes it unreachable for many of those people.  He thought they                
couldn't make a living at it, but could make a partial living at               
it.                                                                            
                                                                               
MR. GARAY explained that it's a long road to become a marine pilot.            
He said there is an apprentice program that can be used.                       
Unfortunately, there isn't anyone in western Alaska that has the               
entry level license.  That's a significant hurdle. He said they                
hear about the factory trawler program that employs the locals, but            
they are employed in the bowels of the factory ship.  They don't               
have a chance to move up into management.  They need to enter into             
this profession at a mid-management level.  Going to the maritime              
Academy is a wonderful opportunity to learn and go in any direction            
you want.                                                                      
                                                                               
CHAIRMAN HALFORD asked if single port licensure was prohibited by              
State law.                                                                     
                                                                               
MR. GARAY said he thought it was.  Kuskokwim used to be a single               
port, because there was only one man who could do the work.  But he            
doesn't do it any more.                                                        
                                                                               
CHAIRMAN HALFORD said there is some legitimacy in single port                  
pilotage especially in river ports, like the Kuskokwim and maybe               
the Yukon - anywhere the local knowledge weighs against ship                   
handling.                                                                      
                                                                               
SENATOR LINCOLN asked when he moved to Alaska.                                 
                                                                               
Number 448                                                                     
                                                                               
MR. GARAY answered he moved his whole family to Homer in 1990 which            
is his only residence.                                                         
                                                                               
SENATOR TAYLOR moved to send the standard letter to the Joint Body             
of the Legislature regarding Mr. GARAY.  There were no objections              
and it was so ordered.                                                         
                                                                               
MR. MICHAEL WHITE, Board of Marine Pilots, said he moved to Alaska             
in 1979 after graduating from law school.  He reviewed his resume'             
for the Committee.  He is interested with the Marine Pilot Board,              
because his law practice has been in and out of various maritime               
issues and has wanted to get back into public service and was                  
honored that the Governor appointed him.                                       
                                                                               
CHAIRMAN HALFORD asked if he was a public member of this Board.                
                                                                               
MR. WHITE answered yes.                                                        
                                                                               
CHAIRMAN HALFORD asked if his practice brought him into this area.             
                                                                               
MR. WHITE replied that his experience is very indirect as he                   
represented the family of a marine pilot who was killed in a plane             
crash.  When he worked on the State's legal team for the Exxon                 
Valdez oil spill, it became apparent to him how very important it              
is to the State that marine pilot issues are handled well.                     
                                                                               
Number 400                                                                     
                                                                               
SENATOR TAYLOR said he knows Mr. White personally and holds him in             
high regard.                                                                   
                                                                               
CHAIRMAN HALFORD said the only question he has is that he's at arms            
link from the Board.                                                           
                                                                               
MR. WHITE said he understands that from having been a judge in the             
past he is very familiar with advocate situations.                             
                                                                               
SENATOR TAYLOR moved to send the standard letter to the Joint Body             
of the Legislature regarding Mr. White.  There were no objections              
and it was so ordered.                                                         
                                                                               
Number 401                                                                     
                                                                               
MS. CAMILLE' OECHSLI, Alaska Oil and Gas Conservation Commission,              
said she first moved to Alaska in 1977 and reviewed her resume' for            
the Committee.  She said she enjoys her work very much and has                 
experience in the oil and gas field from the Attorney General's                
office, although she still has a lot to learn.                                 
                                                                               
SENATOR TAYLOR moved to send the standard letter to the Joint Body             
of the Legislature regarding Ms. Oechsli.  There were no objections            
and it was so ordered.                                                         
                                                                               
CHAIRMAN HALFORD adjourned the meeting at 4:35 p.m.                            

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