Legislature(2021 - 2022)BUTROVICH 205

02/28/2022 03:30 PM Senate RESOURCES

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03:34:52 PM Start
03:35:32 PM Mining Industry Update
04:51:29 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Mining Industry Update TELECONFERENCED
+ Bills Previously Heard/Scheduled TELECONFERENCED
**Streamed live on AKL.tv**
                    ALASKA STATE LEGISLATURE                                                                                  
              SENATE RESOURCES STANDING COMMITTEE                                                                             
                       February 28, 2022                                                                                        
                           3:34 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Joshua Revak, Chair                                                                                                     
Senator Click Bishop                                                                                                            
Senator Gary Stevens                                                                                                            
Senator Jesse Kiehl                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Peter Micciche, Vice Chair                                                                                              
Senator Natasha von Imhof                                                                                                       
Senator Scott Kawasaki                                                                                                          
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
Mining Industry Update                                                                                                          
                                                                                                                                
   - HEARD                                                                                                                      
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record.                                                                                                   
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
DEANTHA SKIBINSKI, Executive Director                                                                                           
Alaska Miners Association                                                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: One of three mining industry slideshow                                                                    
presenters.                                                                                                                     
                                                                                                                                
KAREN MATTHIAS                                                                                                                  
Executive Director                                                                                                              
Council of Alaska Producers                                                                                                     
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: One of three mining industry slideshow                                                                    
presenters.                                                                                                                     
                                                                                                                                
WAYNE HALL                                                                                                                      
Manager, Community and Public Relations                                                                                         
Teck Alaska - Red Dog Mine                                                                                                      
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:  One  of  three  mining  industry  slideshow                                                             
presenters.                                                                                                                     
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:34:52 PM                                                                                                                    
CHAIR  JOSHUA   REVAK  called   the  Senate   Resources  Standing                                                             
Committee meeting  to order at 3:34  p.m. Present at the  call to                                                               
order were Senators Kiehl, Stevens, Bishop, and Chair Revak.                                                                    
                                                                                                                                
^Mining Industry Update                                                                                                         
                     MINING INDUSTRY UPDATE                                                                                 
                                                                                                                                
3:35:32 PM                                                                                                                    
CHAIR REVAK announced  a mining industry update  presented by the                                                               
Alaska Miners  Association, the Council of  Alaska Producers, and                                                               
Teck Red Dog Mine.                                                                                                              
                                                                                                                                
[The   slideshow  presenters   introduced   themselves  and   are                                                               
identified in the minutes below.]                                                                                               
                                                                                                                                
3:36:49 PM                                                                                                                    
DEANTHA    SKIBINSKI,   Executive    Director,   Alaska    Miners                                                               
Association,  Anchorage, Alaska,  one of  three presenters  began                                                               
the   mining   industry   slideshow,  stating   the   association                                                               
represents all  aspects of the  mining industry from  large scale                                                               
mines  and projects,  Alaska's coal  mine,  the individual  small                                                               
placer  operations,   sand  and  gravel,  and   the  vendors  and                                                               
contractors that do business with the mining industry.                                                                          
                                                                                                                                
                                                                                                                                
MS. SKIBINSKI began the Mining Industry Update with slide 2:                                                                    
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
        Overview                                                                                                              
                                                                                                                                
     • Global Factors: Growing Demand                                                                                           
                                                                                                                                
     • US Policy: Increase Domestic Production                                                                                  
                                                                                                                                
     • Alaska's Advantage                                                                                                       
                                                                                                                                
     • Benefits for Alaska and Alaskans                                                                                         
                                                                                                                                
MS. SKIBINSKI said  that during this presentation  she intends to                                                               
discuss  the  existing  and  predicted  significant  increase  in                                                               
demand for  minerals worldwide; the nation's  reliance on foreign                                                               
sources  of minerals  and  the policies  needed  to produce  more                                                               
minerals here  at home; and  satisfying the mineral needs  of the                                                               
nation  by  focusing on  Alaska  to  produce them.  Finally,  the                                                               
presentation  will spotlight  the benefits  of mining  for Alaska                                                               
and Alaskans.                                                                                                                   
                                                                                                                                
MS.  SKIBINSKI recited  a mining  adage  saying mining  underpins                                                               
everything that  we do, from  the airbags  in cars, to  X-rays in                                                               
medical devices,  to the fact  that a  person can walk  into this                                                               
room  and  turn   on  the  light.  Modern   lifestyles  would  be                                                               
impossible  without   mining.  The  global  dependency   on  mine                                                               
products requires the steady production of minerals worldwide.                                                                  
                                                                                                                                
3:37:40 PM                                                                                                                    
MS. SKIBINSKI said that in  terms of obtaining and satisfying the                                                               
world's  need  for minerals,  this  is  just the  beginning.  The                                                               
pursuit of renewable  technology and energy storage  has sent and                                                               
will  continue  to send  the  demand  surging. Subsequently,  the                                                               
production of  these minerals needs  to surge as well.  The World                                                               
Bank, the  International Energy Agency,  and other  entities have                                                               
studied the  global energy goals  and project a  massive increase                                                               
in  mineral needs  moving forward.  The following  slides address                                                               
how the growing demand for minerals can be satisfied.                                                                           
                                                                                                                                
MS. SKIBINSKI advanced to slides 3 and 4:                                                                                       
                                                                                                                                
          Global Factors: Growing Demand for Minerals                                                                         
                                                                                                                                
     Mineral   Production   to   Soar  as                                                                                     
     Demand   for   Clean   Energy   Increases                                                                                
                                                                                                                                
     Washington,  May 11,  2020  - A  new  World Bank  Group                                                                  
     report finds  that the production of  minerals, such as                                                                    
     graphite, lithium and cobalt,  could increase by nearly                                                                    
     500%  by 2050,  to meet  the growing  demand for  clean                                                                    
     energy technologies.  It estimates that over  3 billion                                                                    
     tons of  minerals and metals  will be needed  to deploy                                                                    
     wind,  solar and  geothermal power,  as well  as energy                                                                    
     storage,  required  for   achieving  a  below  2-degree                                                                    
     Celsius future.                                                                                                            
                                                                                                                                
     The report  "Minerals for  Climate Action:  The Mineral                                                                  
     Intensity of  the Clean  Energy Transition"  also finds                                                                  
     that  even   though  clean  energy   technologies  will                                                                    
     require more  minerals, the  carbon footprint  of their                                                                    
     production - from extraction to  end use - will account                                                                    
     for  only 6  percent  of the  greenhouse gas  emissions                                                                    
     generated  by  fossil  fuel  technologies.  The  report                                                                    
     underscores  the  important  role  that  recycling  and                                                                    
     reuse  of  minerals  will play  in  meeting  increasing                                                                    
     mineral demand. It also notes  that even if we scale up                                                                    
     recycling rates  for minerals like copper  and aluminum                                                                    
     by 100%, recycling and reuse  would still not be enough                                                                    
     to meet  the demand  for renewable  energy technologies                                                                    
     and energy storage.                   (The World Bank)                                                                     
                                                                                                                                
     "Over 3  billion tons  of minerals  and metals  will be                                                                    
     needed to  deploy wind, solar and  geothermal power, as                                                                    
     well as energy storage,  required for achieving a below                                                                    
     2?C future."                                                                                                               
                                                                                                                                
     "Even  though clean  energy  technologies will  require                                                                    
     more   minerals,   the   carbon  footprint   of   their                                                                    
     productionfrom  extraction to  end usewill  account for                                                                    
     only 6%  of the  greenhouse gas emissions  generated by                                                                    
     fossil fuel technologies."                                                                                                 
                                                                                                                                
      ...even if  we scale  up recycling rates  for minerals                                                                    
     like copper  and aluminum by 100%,  recycling and reuse                                                                    
     would  still  not be  enough  to  meet the  demand  for                                                                    
     renewable energy technologies and energy storage."                                                                         
                                                                                                                                
MS. SKIBINSKI began the discussion  of how to satisfy the growing                                                               
demand  for  minerals  by  addressing recycling.  As  part  of  a                                                               
mineral strategy, the pursuit of  mineral recycling must continue                                                               
as  well as  investing  in technology  to  improve its  efficacy.                                                               
Understand that  recycling alone  will not  be enough  to satisfy                                                               
the world's mineral needs. She  cited a projection from The World                                                               
Bank and explained  that even if base metal  recycling rates like                                                               
copper and  aluminum doubled, it  would still not be  enough. The                                                               
nation must broaden its approach to satisfy its mineral needs.                                                                  
                                                                                                                                
3:38:47 PM                                                                                                                    
MS. SKIBINSKI  advanced to slide  5, Where Our  Critical Minerals                                                               
are Coming From.  She asked the committee where  they want mining                                                               
to occur knowing that mining  must increase to meet global needs.                                                               
Slide 5  contained headlines  which indicate  the U.S.  is losing                                                               
ground to China in the contest  for clean energy and dominance in                                                               
rare   earth  production.   The  world   has  watched   political                                                               
instability unfold over  the last few days. The  United States is                                                               
reliant  on  minerals that  are  mined  in unfriendly  countries;                                                               
countries with the ability to  hold the U.S. economy hostage. The                                                               
U.S. is importing 90 percent of  its rare earth needs from China.                                                               
The majority of the world's cobalt  is produced in the Congo with                                                               
operations  employing young  children in  poor conditions;  it is                                                               
better for  mining to occur in  a country with strong  safety and                                                               
environmental laws.                                                                                                             
                                                                                                                                
3:39:29 PM                                                                                                                    
MS. SKIBINSKI advanced  to slide 6, stating this  quote from U.S.                                                               
Senator Lisa Murkowski summed up America's predicament best:                                                                    
                                                                                                                                
               Mined in America: US Policy Needed                                                                             
                                                                                                                                
     "America's  reliance  on   foreign  countries  for  the                                                                    
     production and recycling of our  critical minerals is a                                                                    
     vulnerability to our  national security, a disadvantage                                                                    
     to  our   economy,  and  a  hindrance   to  our  global                                                                    
     competitiveness.  Unfortunately,  the  current  Federal                                                                    
     permitting    and   review    process   is    painfully                                                                    
     inefficient."                                                                                                              
     - Senator Lisa Murkowski                                                                                                   
                                                                                                                                
MS.  SKIBINSKI said  that the  permitting system  must change  to                                                               
turnaround the  nation's vulnerable position. America's  laws are                                                               
among the  strongest and  most stringent  in the  world. However,                                                               
the  federal  government's  implementation   of  these  laws  has                                                               
resulted  in  a  negative  impact on  investment  with  no  added                                                               
benefit to  the environment or  safety. She enjoyed  making these                                                               
same  points  in  the previous  three  administrations,  possibly                                                               
longer, about  the fundamental policies  that are needed  to grow                                                               
mining  in the  U.S. To  varying degrees  these are  the building                                                               
blocks of  what it takes  to get  more mining investments  in our                                                               
country. It is unfortunate that  the nation has taken major steps                                                               
backwards  in these  fundamentals  in the  last  year. While  the                                                               
current  federal administration  touts  a desire  to achieve  its                                                               
climate goals,  acknowledges more mining  has to take  place, and                                                               
purports more  mining needs  to happen  domestically, it  has not                                                               
acted accordingly.                                                                                                              
                                                                                                                                
MS. SKIBINSKI reviewed the following  bullet points, stating that                                                               
to produce more minerals here at home the mining industry needs:                                                                
                                                                                                                                
     • Access to lands                                                                                                          
                                                                                                                                
MS. SKIBINSKI discussed the nations need to have access to                                                                      
mineral deposits; this is particularly true in Alaska where                                                                     
known mineral  potential is mostly in  remote locations. The                                                                    
patchwork  of  land  ownership  in  Alaska  means  exploring                                                                    
mineral deposits on federal lands  will be more challenging.                                                                    
Working  on  state or  private  land  still requires  access                                                                    
across federal lands in most  cases. Instead of multiple use                                                                    
management and access to  deposits, the Biden administration                                                                    
has  instigated significant  changes  with land  management.                                                                    
One  example  of this  is  the  recent reimposition  of  the                                                                    
roadless rule  in the  Tongass National  Forest. Previously,                                                                    
the  roadless  rule  had   an  exemption  which  facilitated                                                                    
mineral   development,   hydropower  projects,   and   other                                                                    
economic development  in the  Tongass National  Forest. This                                                                    
exemption is no longer in place.                                                                                                
                                                                                                                                
     • NEPA process scope and timelines                                                                                         
                                                                                                                                
MS.  SKIBINSKI  said  the  industry   was  affected  by  the                                                                    
cancellation  of   improvements  made  under   the  National                                                                    
Environmental  Policy Act  (NEPA),  the nation's  permitting                                                                    
process created  alongside the nation's  environmental laws.                                                                    
The NEPA  process has swelled  to result in  documents where                                                                    
thousands of  pages have limitless  topic areas, and  it can                                                                    
take years to  pull one of these documents  together. It has                                                                    
become  difficult for  agencies  and  project proponents  to                                                                    
manage and even  more difficult for the public  to engage in                                                                    
and  track.  Recent  attempts  to   make  the  process  more                                                                    
thorough  and efficiently  managed, have  been rolled  back.                                                                    
Previous collaborations  between agencies has suffered  as a                                                                    
result.                                                                                                                         
                                                                                                                                
     • Collaboration amongst agencies                                                                                           
                                                                                                                                
     • Decrease risk of litigation                                                                                              
                                                                                                                                
3:42:07 PM                                                                                                                    
MS. SKIBINSKI said  that regulatory changes that  swing on a                                                                    
pendulum  can  result  in  regulation  processes  that  lack                                                                    
clarity,  and   in  turn,  can  open   projects  and  permit                                                                    
decisions  up to  the  risk  of litigation.  It  is fair  to                                                                    
assume that  all types of  resource development in  the U.S.                                                                    
will encounter  litigation at  some point,  but the  cost of                                                                    
litigation and  delays is  especially detrimental  to Alaska                                                                    
in terms of attracting investment.                                                                                              
                                                                                                                                
     • Public comment improves project; increases support                                                                       
                                                                                                                                
MS.  SKIBINSKI  said  the   mining  industry  believes  that                                                                    
engaging  with the  public early  and often  has a  two-fold                                                                    
benefit:                                                                                                                        
                                                                                                                                
1)  Working with  local,  public  stakeholders improves  the                                                                    
proposal, and                                                                                                                   
                                                                                                                                
2) It demonstrates  that the industry is  working with local                                                                    
communities and helps to gain support for the proposals.                                                                        
                                                                                                                                
     • Spotlight on Ambler Road decision                                                                                        
                                                                                                                                
MS.  SKIBINSKI recapped  a  White  House announcement  which                                                                    
introduced  the next  steps to  a  mineral strategy,  titled                                                                    
"Securing  a  Made  in America  Supply  Chain  for  Critical                                                                    
Minerals." She  asked the committee  to consider  how mining                                                                    
in America could be improved  based on the following events.                                                                    
A  White House  announcement  emphasized  the importance  of                                                                    
critical  minerals,  yet  the actual  details  instruct  the                                                                    
Department of  the Interior to  evaluate the need  to reform                                                                    
mining laws with an insinuation  that domestic mining is not                                                                    
done  responsibly.  That same  day,  the  Department of  the                                                                    
Interior announced  that it had  asked the federal  court to                                                                    
vacate the permit  that was obtained for Ambler  Road and to                                                                    
reopen  the  environmental   analysis  alleging  there  were                                                                    
deficiencies  in  the  process.  This  was  a  process  that                                                                    
spanned three  federal administrations and it  had dozens of                                                                    
public  meetings throughout  Alaska, particularly  along the                                                                    
road  corridor,  with   multiple  opportunities  for  public                                                                    
comment in a transparent process.                                                                                               
                                                                                                                                
MS. SKIBINSKI  admitted that she  talked at length  on slide                                                                    
6,  but it  paints a  picture of  the magnitude  of industry                                                                    
challenges with the federal  administration. She thanked the                                                                    
chair and the  committee for their efforts  to defend Alaska                                                                    
against federal difficulties.                                                                                                   
                                                                                                                                
3:44:17 PM                                                                                                                    
KAREN MATTHIAS, Executive Director,  Council of Alaska Producers,                                                               
Anchorage, Alaska,  one of three presenters  continued the mining                                                               
industry slideshow,  stating the  Council of Alaska  Producers is                                                               
the  trade association  for five  large metal  mines and  several                                                               
advanced development  projects in Alaska. The  soaring demand for                                                               
minerals was just covered. Increasing  production is good for the                                                               
nation's  economy, and  security.  The state  must ensure  Alaska                                                               
gets its  fair share of investments,  not only to be  part of the                                                               
national solution but to grow Alaska's economy.                                                                                 
                                                                                                                                
MS. MATTHIAS highlighted Alaska's advantages listed on slide 7:                                                                 
                                                                                                                                
                       Alaska's Advantage                                                                                       
                                                                                                                                
   • Mineral potential                                                                                                          
                                                                                                                                
   • Strict environmental regulations                                                                                           
                                                                                                                                
   • Excellent track record                                                                                                     
                                                                                                                                
MS.  MATTHIAS  advanced  to  slide 8,  stating  that  the  Fraser                                                               
Institute annual  global survey of mining  companies consistently                                                               
ranks Alaska in  the top five jurisdictions for  its pure mineral                                                               
potential. The map on slide 8  shows that Alaska is so abundantly                                                               
rich in  minerals, that it  was hard to  fit all mineral  data on                                                               
just  one map  to illustrate  the enormous  mineral potential  in                                                               
Alaska.  The  map  depicts  the   minerals  Alaska  is  currently                                                               
producing.  Six  stars mark  large  mines.  Diamonds indicate  44                                                               
statewide  projects,  ranging  from  early-stage  exploration  to                                                               
advanced development. Circles on  the map indicate prospects, all                                                               
the sites  known to  have mineral  potential. The  map emphasizes                                                               
the  contrast  between  the  sizeable   number  of  projects  and                                                               
prospects compared to  the small number of mines. This  is due to                                                               
the challenges of developing a  mine in Alaska. Remote locations,                                                               
lack of infrastructure,  and high cost of energy add  to the cost                                                               
of  developing mines  in the  state. Labor  shortages and  supply                                                               
chain  delays   are  also   development  hindrances,   which  are                                                               
currently being  experienced by all industries  across the board.                                                               
Lastly,   unpredictable  political   interference  with   federal                                                               
permitting sends a negative message to investors and companies.                                                                 
                                                                                                                                
3:46:33 PM                                                                                                                    
MS. MATTHIAS advanced to slide  9, Mining Development Takes Time,                                                               
stating  that  it  is  a  long  process  to  bring  a  mine  into                                                               
production  even in  the best  of circumstances.  The graphic  on                                                               
slide  9  shows   a  mine  timeline,  depicting   the  stages  of                                                               
development,  from  its infancy  to  operational  maturity. In  a                                                               
perfect world,  the feasibility and permitting  stages would take                                                               
ten  years,  but recently  these  stages  have taken  longer.  As                                                               
global  demand  for  minerals  increases,  commodity  prices  are                                                               
expected to stay robust, and  projects are progressing. The state                                                               
is  on the  cusp  of realizing  Alaska's  potential. The  state's                                                               
large  mines have  been in  production  for many  years, and  are                                                               
still going  strong. They are exploring  and permitting expansion                                                               
to continue operating in years ahead.                                                                                           
                                                                                                                                
3:47:16 PM                                                                                                                    
MS. MATTHIAS  explained that the map  on slide 10 takes  a closer                                                               
look at  mines in the state.  While the industry is  proud of its                                                               
contribution   to   state   revenue,  it   could   increase   the                                                               
contribution  by  bringing more  mines  into  operation. The  map                                                               
illustrates the  regional impact  of mining.  The red  stars show                                                               
large producing  mines, which operate  24/7 throughout  the year.                                                               
Large  mines  employed 3,000  miners  and  onsite contractors  in                                                               
2020. Moving from north to south, the large mines are:                                                                          
                                                                                                                                
- Red Dog,  the world's largest zinc concentrate  producer. It is                                                               
an open  pit mine on  Northwest Alaska Native  Association (NANA)                                                               
land.                                                                                                                           
                                                                                                                                
- Fort  Knox, the largest  producing gold  mine in Alaska.  It is                                                               
located outside Fairbanks. The employees  are able to live in the                                                               
Fairbanks North Star Borough and commute to work.                                                                               
                                                                                                                                
-  Pogo is  an underground  gold mine  near Delta  Junction. Pogo                                                               
built and  maintains a 50-mile road  to access the mine  from the                                                               
road system.                                                                                                                    
                                                                                                                                
- Usibelli Coal  Mine is immediately adjacent  to Denali National                                                               
Park. It  has been in  operation since  1943 and has  been family                                                               
owned  the entire  time. A  report  has been  distributed to  the                                                               
committee that provides more detail about Usibelli.                                                                             
                                                                                                                                
-  Greens Creek  and  Kensington are  both  underground mines  in                                                               
Southeast  Alaska and  their  workers commute  to  work by  boat.                                                               
Greens Creek  is the  top silver producer  in the  United States,                                                               
producing 30 percent of the nation's domestic supply of silver.                                                                 
                                                                                                                                
The  industry has  two  projects in  permitting:  Donlin Gold  in                                                               
Western Alaska and Pebble in Southwest Alaska.                                                                                  
                                                                                                                                
This  map   also  highlights  the  industry's   current  advanced                                                               
exploration  projects with  green circles.  Moving from  north to                                                               
south these projects are:                                                                                                       
                                                                                                                                
- Upper Kobuk in the Ambler Mining District, Northwest Alaska.                                                                  
- Graphite Creek near Nome                                                                                                      
- Livengood near Fairbanks                                                                                                      
- Manh Choh in Tetlin                                                                                                           
- Palmer near Haines                                                                                                            
- Niblack on Prince of Wales Island                                                                                             
                                                                                                                                
MS. MATTHIAS said there are dozens more projects and deposits:                                                                  
                                                                                                                                
- Dawson which is a small underground gold mine                                                                                 
- Bokan Mountain which is a rare earth project                                                                                  
                                                                                                                                
Both of  these projects are on  Prince of Wales Island.  The wide                                                               
distribution of yellow  circles on the map represents  one of the                                                               
over 90  communities in Alaska  where a mining  industry employee                                                               
lives.                                                                                                                          
                                                                                                                                
3:49:58 PM                                                                                                                    
MS.  SKIBINSKI advanced  to slide  11, stating  placer mines  are                                                               
commonly referred  to as  the state's  seventh large  mine. There                                                               
are  approximately 170  active  placer  mining operations  across                                                               
Alaska. The  slide depicts a  variety of different  placer mining                                                               
methods.  Placer   mining  is  generally  small-scale.   Gold  is                                                               
recovered  from  dirt  using  water   and  gravity.  These  mines                                                               
resemble  a neighborhood  construction project  that has  a small                                                               
footprint  and  an  average  of four  employees.  Many  of  these                                                               
operations  are  family owned  and  operate  seasonally when  the                                                               
ground is not frozen.                                                                                                           
                                                                                                                                
3:50:45 PM                                                                                                                    
SENATOR  BISHOP  directed attention  to  the  bullet point  about                                                               
rigorous permitting on  slide 12 and posited that  more should be                                                               
done to  highlight that Alaska does  it right. He shared  a story                                                               
about giving  two regulators from  the Army Corps of  Engineers a                                                               
tour  of  a  site  that  was placer  mined  15  years  ago.  They                                                               
commented on  the pristine wilderness  and were surprised  to see                                                               
the regrowth and habitat that  had flourished since the mine shut                                                               
down. He also pointed to a  representative sitting in the back of                                                               
the room who  was doing reclamation before it was  a federal law.                                                               
He apologized for the interruption.                                                                                             
                                                                                                                                
MS.  SKIBINSKI  commented  that  Senator  Bishop  is  right.  The                                                               
presenters  have photos  of interior  projects, dozens  of placer                                                               
mines, and a coal mine,  illustrating Senator Bishop's point, not                                                               
to mention regulators who have  voiced similar praise. The mining                                                               
industry has  received many national  awards for  its reclamation                                                               
work from the Bureau of  Land Management (BLM) and the Department                                                               
of the Interior. The industry is proud of the work miners do.                                                                   
                                                                                                                                
3:52:50 PM                                                                                                                    
MS.   SKIBINSKI   advanced  to   slide   12,   Doing  it   Right:                                                               
Environmental  Safeguards. She  said that  Alaska miners  have to                                                               
work within an environmental regime.  The industry maintains that                                                               
the  state's mining  operations  and the  agencies that  regulate                                                               
them account  for what is  a world class regulatory  system. Mine                                                               
permits protect  all aspects of  the environment,  including air,                                                               
land, water, fish  and wildlife, and public  health. The industry                                                               
strives  to reduce  emissions, energy,  and water  consumption by                                                               
continually  seeking  efficiencies and  improvements.  Throughout                                                               
its lifespan  a mine has  strict regulatory  oversight, including                                                               
reclamation and restoration  of the site after  closure. The mine                                                               
must  have tailored  financial assurance  prior to  operation, so                                                               
that  the  public  does  not  bear the  burden  if  the  cost  of                                                               
reclamation falls to the state.                                                                                                 
                                                                                                                                
     • Rigorous permitting regulations                                                                                          
     • Strict operational oversight                                                                                             
     • Reducing emissions and increasing efficiency                                                                             
     • Closure/Reclamation                                                                                                      
     • Financial Assurance prior to operating                                                                                   
                                                                                                                                
3:53:51 PM                                                                                                                    
MS.  SKIBINSKI advanced  to slide  13  which shows  the scope  of                                                               
mining  permits. This  list  was supplied  by  the Department  of                                                               
Natural Resources (DNR).                                                                                                        
                                                                                                                                
              No Single Permit to Mine: there are                                                                             
                 many permits & authorizations                                                                                
                                                                                                                                
         Mine permitting is a mixture of State, Federal                                                                         
        and local permitting requirements. Each project                                                                         
                           is unique.                                                                                           
                                                                                                                                
       STATE                                                                                                                    
     ? Plan of Operations (DNR)                                                                                                 
     ? Reclamation and Bonding (DNR)                                                                                            
     ? Waste Management Permits and Bonding (ADEC)                                                                              
     ? CWA Section 402 APDES Water Discharge Permit                                                                             
     ? Certification of ACOE Permits (ADEC)                                                                                     
     ? Sewage Treatment System Approval (ADEC)                                                                                  
     ? Air Quality Permits (ADEC)                                                                                               
     ? Fish Habitat and Fishway Permits (ADF&G)                                                                                 
     ? Water Rights (DNR)                                                                                                       
     ? Right of Way/Access (DNR/DOT)                                                                                            
     ? Tidelands Leases (DNR)                                                                                                   
     ? Dam Safety Certification (DNR)                                                                                           
     ? Cultural Resource Protection (DNR)                                                                                       
     ? Monitoring Plan                                                                                                          
     (Surface/Groundwater/Wildlife)                                                                                             
     (DNR/DEC/DFG)                                                                                                              
                                                                                                                                
      FEDERAL                                                                                                                   
       US EPA Air Quality Permit review                                                                                         
       US EPA Safe Drinking Water Act (UIC Permit)                                                                              
       US ACOE S. 404 Dredge and Fill Permit                                                                                    
       US ACOE S. 10 Rivers and Harbors Act                                                                                     
       US ACOE S. 106 Historical & Cultural Resources                                                                           
       Protection                                                                                                               
       NMFS Threatened & Endangered Species Act                                                                                 
       Consultation                                                                                                             
       NMFS Marine Mammal Protection Act                                                                                        
       NMFS Essential Fish Habitat                                                                                              
       NMFS Fish and Wildlife Coordination Act                                                                                  
       USFWS Threatened & Endangered Species Act                                                                                
       Consultation                                                                                                             
       USFWS Bald Eagle Protection Act Clearance                                                                                
       USFWS Migratory Bird Protection                                                                                          
       USFWS Fish & Wildlife Coordination Act                                                                                   
                                                                                                                                
     These are only some of the permits required!                                                                             
                                                                                                                                
Permitting  a mine  in  Alaska  takes many  years  from start  to                                                               
finish. The  process includes  planning, an  environmental study,                                                               
review,  testing,  and  approval.  Dozens of  local,  state,  and                                                               
federal  government agencies  are  involved in  the process.  The                                                               
permits listed  above are typical for  a large mine on  state- or                                                               
privately-owned  land  and  would  still  require  a  significant                                                               
amount of federal authorization.  By comparison, a mine permitted                                                               
on  federally owned  land requires  many additional  permits like                                                               
those  under the  Bureau of  Land Management  and-or U.S.  Forest                                                               
Service regulations. These  permits contain multiple stipulations                                                               
that agencies can  and do prescribe. The  stipulations are either                                                               
outside  of or  in  addition  to governing  laws  and mines  must                                                               
perform on them.                                                                                                                
                                                                                                                                
Slide 13 points out that there  is no one decision to approve one                                                               
single permit  for a mine in  Alaska. None of the  steps within a                                                               
mine  permitting   process  guarantee   approval.  There   is  no                                                               
automatic  yes, no  rubber stamp.  Every mine  is different,  and                                                               
each  requires   a  tailor-made  environmental   mitigation  plan                                                               
discussed  and altered  at  length  by both  the  agency and  the                                                               
project proponent before advancing a stage forward.                                                                             
                                                                                                                                
3:55:25 PM                                                                                                                    
MS. SKIBINSKI  advanced to slide  14, Permitting Flow  Chart. DNR                                                               
supplied  this chart  dissecting Alaska's  specific environmental                                                               
management.  It provides  an overview  of how  many agencies  and                                                               
departments  are  involved  in evaluating  mining  proposals  and                                                               
their  monitoring  goals  through  all the  mine  stages.  It  is                                                               
important to  understand that  multiple opportunities  for public                                                               
participation  continuously   occur  throughout   the  permitting                                                               
process. The  importance of public  participation is on  par with                                                               
"no  automatic approvals"  in the  permitting process.  The chart                                                               
shows that a large mine  permit requires thirteen public notices,                                                               
and  the state  sponsors an  additional four  as a  courtesy. The                                                               
process is  transparent and designed  to ensure the public  has a                                                               
voice in state mining activity.                                                                                                 
                                                                                                                                
3:56:12 PM                                                                                                                    
MS.  MATTHIAS  advanced to  slide  15,  stating that  the  strict                                                               
oversight in  permitting also  continues through  the operational                                                               
life of the mine:                                                                                                               
                                                                                                                                
                  Strict Operational Oversight                                                                                  
                                                                                                                                
                Alaska: the best mine monitoring                                                                                
                      system in the world                                                                                       
                                                                                                                                
     • Water quality monitoring                                                                                                 
     • Bottom-to-top comprehensive biomonitoring                                                                                
      • Third-party of both the mine and the regulatory                                                                         
        agencies                                                                                                                
                                                                                                                                
Alaska has  one of the  best water quality monitoring  systems in                                                               
the world with respect to mines. It has two distinct parts:                                                                     
                                                                                                                                
First,  water   quality  monitoring.  This  is   fairly  standard                                                               
globally, but Alaska's system is more comprehensive than many.                                                                  
                                                                                                                                
Second,  Alaska goes  further and  does  biomonitoring, which  is                                                               
less  common in  other  jurisdictions. The  Alaska Department  of                                                               
Fish  and Game  (ADF&G)  oversees the  monitoring  of algae,  the                                                               
benthic  zone, and  fish, including  metals uptake,  habitat, and                                                               
population. Alaska does  more and better monitoring  than most of                                                               
the world, and it is a system of which to be proud.                                                                             
                                                                                                                                
MS.  MATTHIAS  advanced to  slide  16,  Reclamation and  Closure,                                                               
which  clarifies misunderstood  reclamation laws  with these  key                                                               
points:                                                                                                                         
                                                                                                                                
    • Alaska law (AS 27.19) requires that a mine site must                                                                      
        be returned to a stable condition compatible with                                                                       
        the post-mining land use                                                                                                
                                                                                                                                
     • Plan must be approved  by  DNR Commissioner  before                                                                      
        operations begin                                                                                                        
                                                                                                                                
     • Financial assurance applies to all companies                                                                             
                                                                                                                                
A mining company  must provide financial assurance  at the outset                                                               
and  may  not  use  the funds  for  reclamation  work.  Financial                                                               
assurance  funds are  guaranteed  to  the state  so  that if  the                                                               
company cannot  perform the  reclamation, the  state can  step in                                                               
without tapping its treasury. It  does not matter where a company                                                               
is  headquartered  or  who owns  the  land;  financial  assurance                                                               
applies to all companies mining in Alaska.                                                                                      
                                                                                                                                
     • Reviewed every 5 years or earlier if necessary                                                                           
                                                                                                                                
Finally,  the   financial  assurance  amount  is   not  set  then                                                               
forgotten.  The  guarantees  are  reviewed every  five  years  or                                                               
whenever a significant change requires review.                                                                                  
                                                                                                                                
3:58:17 PM                                                                                                                    
MS. MATTHIAS  advanced to slide  17, Poker Flats -  Usibelli Coal                                                               
Mine, stating a couple of good reclamation examples follow:                                                                     
                                                                                                                                
     DNR   Commissioner   Corri  Feige:   "In   successfully                                                                    
     achieving   Phase  III   bond  release,   Usibelli  has                                                                    
     demonstrated  the fundamental  strength of  our state's                                                                    
     mineral development system. We  can develop our land to                                                                    
     produce  resources  to  meet  the  state's  energy  and                                                                    
     economic  needs,  then  restore  the  land  to  provide                                                                    
     healthy habitat for people and wildlife."                                                                                  
     September 2021                                                                                                             
                                                                                                                                
Alaska's coal mines require a  three-phase bonding process. Phase                                                               
I  includes backhoeing  and regrading  to restore  or approximate                                                               
the original  contour; this  may occur within  the first  year of                                                               
mining.  Phase   II  requires  planting  native   vegetation  and                                                               
establishing drainages;  this can  take several years.  Phase III                                                               
requires successful completion of the first two stages plus:                                                                    
                                                                                                                                
-a minimum of ten years after the completion of Phase II, plus                                                                  
-two  years   of  vegetation   studies  to   validate  sufficient                                                               
vegetative cover and diversity.                                                                                                 
                                                                                                                                
Phase  III  is  a  fairly   involved,  multi-step  process.  When                                                               
Usibelli Coal  Mine began its  operation in the Poker  Flats area                                                               
near Denali  National Park almost  forty years ago,  it committed                                                               
to restoring the land and posted  a bond backing that promise. As                                                               
Senator  Bishop mentioned  earlier, this  was before  reclamation                                                               
was required. The  company did it because it was  the right thing                                                               
to do.  DNR declared that  Usibelli had achieved top  tier, Phase                                                               
III status  last September. Alaska  can and does develop  land to                                                               
produce resources to meet the  state's energy and economic needs,                                                               
then restores  the land  to provide healthy  land for  people and                                                               
wildlife. Usibelli is right to be proud of its achievement.                                                                     
                                                                                                                                
3:59:56 PM                                                                                                                    
CHAIR  REVAK agreed,  saying that  sometimes the  worst is  heard                                                               
about  the interface  of mining  and the  environment, but  it is                                                               
important to note,  again and again, that  Usibelli was restoring                                                               
the site before it was the law  because it was the right thing to                                                               
do.  There are  many miners  and organizations  that go  to great                                                               
lengths  to be  good stewards.  Television ads  show an  opposing                                                               
message from  time to time, but  in many cases, the  land is left                                                               
better than it was found.                                                                                                       
                                                                                                                                
4:00:40 PM                                                                                                                    
MS.  MATTHIAS  stated  that  Alaska   does  not  have  a  lot  of                                                               
reclamation examples  because most of  the mines that  started in                                                               
the modern mining era are  still operating. Alaska's oldest mines                                                               
are  Red Dog  and Greens  Creek,  both mines  began operating  in                                                               
1989,  and both  are  still in  operation.  While reclamation  is                                                               
ongoing  during  operations,  a   full  closure  simply  has  not                                                               
happened at most mines in the  state. One exception is True North                                                               
Mine.                                                                                                                           
                                                                                                                                
MS. MATTHIAS  advanced to slide 18,  quoting Commissioner Feige's                                                               
acclaim for the full reclamation of True North Mine:                                                                            
                                                                                                                                
     True North - Kinross Alaska                                                                                              
                                                                                                                                
     DNR  Commissioner Corri  Feige: "The  developers leased                                                                    
     state  land, produced  a  valuable  commodity to  serve                                                                    
     global  markets,  employed  Alaskans,  and  paid  state                                                                    
     taxes  and   royalties.  When  they  were   done,  they                                                                    
     remediated the  effects of their work  and returned the                                                                    
     land to the state for  its next use. The system works."                                                                    
     October 27, 2020                                                                                                           
                                                                                                                                
4:01:51 PM                                                                                                                    
MS.  MATTHIAS  advanced to  slide  19,  Benefits for  Alaska  and                                                               
Alaskans which  pictures the  roots, trunk and  leaves of  a tree                                                               
planted in  soil. The soil  represents state land,  federal land,                                                               
and Alaska Native corporation land;  the roots represent science-                                                               
based  policy  and  regulations;   the  trunk  represents  mining                                                               
companies and landowners; and the  leaves represent how all parts                                                               
benefit  each other  when properly  nurtured. These  benefits are                                                               
not limited to  job opportunities and contributions  to state and                                                               
local  tax.  Other  benefits   include  vocational  training  and                                                               
scholarships,  supporting  local  goods and  service  industries,                                                               
supporting  Alaska nonprofits,  and  promoting  a safety  culture                                                               
learned on-the-job  and passed on  at home and to  the community.                                                               
The following  mine example delves  deep to illustrate  how mines                                                               
and  projects collaborate  with  different  communities and  what                                                               
that partnership looks like at the Red Dog Mine.                                                                                
                                                                                                                                
4:02:39 PM                                                                                                                    
WAYNE  HALL,  Manager,  Community   and  Public  Relations,  Teck                                                               
Alaska-Red Dog Mine, Juneau, Alaska,  a mining industry slideshow                                                               
presenter  added the  following personal  touch to  show how  the                                                               
mining  industry benefits  people. He  moved to  Juneau in  1971.                                                               
Juneau  is a  town  built on  mining.  It is  a  town that  still                                                               
utilizes   infrastructure  from   those  mining   days,  like   a                                                               
hydroelectric  facility. He  left Juneau  to obtain  a degree  in                                                               
environmental  science,  returned to  work  at  the Greens  Creek                                                               
Mine, and  now works at the  Red Dog Mine. Working  in the mining                                                               
industry  benefitted himself,  his family,  a lot  of friends  in                                                               
Juneau and in Northwest Alaska.                                                                                                 
                                                                                                                                
MR. HALL advanced to slide 20,  NANA, Red Dog Mine, Teck, stating                                                               
this is an  opportunity to brag on the mining  industry. It shows                                                               
some of  the different compartmental  areas of how  mines produce                                                               
benefits.  In  the  case  of  the Red  Dog  Mine,  NANA  Regional                                                               
Corporation owns the land and  the resource. Red Dog is fortunate                                                               
to have a great partnership with NANA.                                                                                          
                                                                                                                                
MR. HALL  pointed out a couple  of areas of focus  that people do                                                               
not think  about often. One  is local  control. When the  Red Dog                                                               
Mine  development  was  proposed, the  Northwest  Arctic  Borough                                                               
(NAB) was formed. The borough created an opportunity:                                                                           
- for the region to make decisions for themselves,                                                                              
- to decide how to generate revenue from the mine, and                                                                          
- for  local control  of schools  and the  school district.  In a                                                               
related  sense, mining  helped  expand educational  opportunities                                                               
with the  magnet school, GeoForce, scholarships  and internships,                                                               
and participation  in the Alaska  Native Science  and Engineering                                                               
Program  (ANSEP).  Mining  also generated  opportunities  in  the                                                               
trades and post-secondary education.                                                                                            
                                                                                                                                
4:05:27 PM                                                                                                                    
MR. Hall stated that many people  do not realize that monies from                                                               
the resource  mined at Red Dog  are reaching every corner  of the                                                               
state. He  reviewed slide 21, a  bar graph with stacks  of dollar                                                               
bills representing the  mine dollars that are  circulating in the                                                               
Alaska economy:                                                                                                                 
                                                                                                                                
     Broad Benefits of Development                                                                                            
                                                                                                                                
                                       ~75 percent U.S. zinc                                                                  
                                     production & largest zinc                                                                  
                                      mine in the world (2019)                                                                  
                                                                                                                                
                          Red Dog Mine                                                                                          
                                                                                                                                
     $2.65 BILLION proceeds paid to NANA since mining began                                                                     
            (thru FY 2021)                                                                                                      
                                                                                                                                
MR.  Hall stated  that NANA  shared  70 percent  of its  proceeds                                                               
through the  7(i) and 7(j)  sections of the Alaska  Native Claims                                                               
Settlement Act (ANCSA).                                                                                                         
                                                                                                                                
     $1.6 BILLION in total 7(i) payments (thru FY 2021)                                                                         
                                                                                                                                
MR. Hall  stated that $1.6 billion  has been paid out  to all the                                                               
other Alaska Native  Corporations and most of  the Alaska Village                                                               
Corporations as well.                                                                                                           
                                                                                                                                
     $1.4 BILLION Payments to State of Alaska, AIDEA                                                                            
            (thru 2021)                                                                                                         
                                                                                                                                
MR.  Hall stated  that  the  State of  Alaska  has received  $1.4                                                               
billion  over  the  years thru  corporate  taxes,  Alaska  mining                                                               
license taxing,  and shipping containers through  the state-owned                                                               
Alaska  Industrial  Development   and  Export  Authority  (AIDEA)                                                               
facility. Red  Dog ships its  concentrates out through  the AIDEA                                                               
facility;                                                                                                                       
                                                                                                                                
     $318 MILLION to NAB since mining began (thru 2021)                                                                         
     $270 MILLION Spent on goods in Alaska in 2021                                                                              
     ~$80 MILLION Annual wages (2021)                                                                                           
                                                                                                                                
4:06:44 PM                                                                                                                    
SENATOR BISHOP pointed  out that $318 million  was contributed to                                                               
the borough thru 2021, $270 million  was spent on goods in Alaska                                                               
in 2021,  and $80 million was  paid-out in annual wages  in 2021.                                                               
These numbers show the economic impact  Red Dog has on the state.                                                               
Alaska  needs more  mining to  drive the  state's gross  domestic                                                               
product and  bend the  economic curve upwards,  which is  not the                                                               
trajectory the state is on now.                                                                                                 
                                                                                                                                
4:07:33 PM                                                                                                                    
MR. HALL advanced to slide 22:                                                                                                  
                                                                                                                                
     Broad Benefits of Development                                                                                            
                                                                                                                                
     Organization        Project             Amount                                                                           
     City of Kivalina    Evacuation Road     $1,000,000                                                                         
     City of Kivalina    Electrical Intertie $3,500,000                                                                         
     City of Selawik     Water & Sewer       $1,000,000                                                                         
     Native Village      Wellness Program    $378,872                                                                           
       of Selawik                                                                                                               
     Ipnatchiaq          New Generator       $147,750                                                                           
       Electric Co                                                                                                              
     Native Village      On-demand           $166,049                                                                           
       of Deering        Water Heaters                                                                                          
     Native Village      Water & Sewer       $579,331                                                                           
       of Buckland                                                                                                              
                                                                                                                                
MR.  HALL stated  that Red  Dog  has two  primary mechanisms  for                                                               
providing funding specific to some of the NAB projects:                                                                         
                                                                                                                                
1. Payment  in lieu of taxes,  which generates 90 percent  of the                                                               
borough's revenue.                                                                                                              
                                                                                                                                
2. The  Village Improvement Fund.  The balance is between  $4 and                                                               
$8 million,  having a  floor of  $4 million and  a ceiling  of $8                                                               
million. It  is based on mine  profits, so even in  bad times the                                                               
fund  balance  will  be  no  less  than  $4  million.  Since  the                                                               
beginning, the fund has made significant payouts.                                                                               
                                                                                                                                
MR. HALL pointed  out that a 7-mile evacuation road  was built on                                                               
a spit  from Kivalina inland.  The road had erosion  problems, so                                                               
$1 million in NAB project funds  helped with repairs to the road.                                                               
Additionally,  NAB used  $3.5 million  in project  funds for  the                                                               
electrical intertie  at the  end of  the new  road, which  is the                                                               
location for the  new Kivalina school and  proposed townsite. The                                                               
amount of money is significant.  These funds can be leveraged for                                                               
grants,  other  opportunities,  and other  funding  because  seed                                                               
money is available.                                                                                                             
                                                                                                                                
MR. HALL  expressed industry  pride in  this program.  The people                                                               
from  these  communities decide  how  to  use the  infrastructure                                                               
funds.  A  commission meets  to  make  decisions on  applications                                                               
received  from all  the communities.  So, all  eleven communities                                                               
decide how to use the funding. It is quite a unique model.                                                                      
                                                                                                                                
4:09:34 PM                                                                                                                    
MR. HALL advanced to slide 23, Jobs and Livelihoods:                                                                            
                                                                                                                                
     Teck Alaska Persons on Roster as of September 2021                                                                         
                                                                                                                                
     ? Regular  527                                                                                                             
           (56.4% NANA Shareholder)                                                                                             
                                                                                                                                
     ? Seasonal & Temp - 92                                                                                                     
            (96.7% NANA Shareholder)                                                                                            
                                                                                                                                
                73% of employees live in Alaska                                                                                 
                                                                                                                                
MR.  HALL   explained  the  difference   between  a  job   and  a                                                               
livelihood.  Red   Dog  Mine  has   jobs,  but  it   also  offers                                                               
livelihoods. Many employees enjoy working  four months out of the                                                               
year  during the  shipping season,  spending the  balance of  the                                                               
year enjoying a  subsistence lifestyle. Red Dog sees  itself as a                                                               
steppingstone.  Between  1300  and 1500  NANA  shareholders  have                                                               
worked at  the mine  and progressed  into other  areas throughout                                                               
the  state. Red  Dog is  part  of the  path, offering  on-the-job                                                               
training, which employees carry to  the next opportunity. Red Dog                                                               
tries to  improve NANA shareholder  numbers and is proud  that 73                                                               
percent of its workforce lives in Alaska.                                                                                       
                                                                                                                                
4:10:48 PM                                                                                                                    
MR.  HALL advanced  to slide  24, Jobs  and Livelihood,  In-House                                                               
Apprenticeship Program:                                                                                                         
                                                                                                                                
                            Training                                                                                        
                        8,500 hrs avg/yr                                                                                      
     Trades Apprentices                                                                                                       
     • Powerhouse, Electrical, Millwright                                                                                       
        Heavy Equipment & Light Vehicle                                                                                         
        Mechanic                                                                                                                
     • Apprentices are 25 percent of the total trades                                                                           
                                                                                                                                
     Mill Operator Apprentice Program                                                                                         
     • Commenced in 2016                                                                                                        
     • First Mine in North America                                                                                              
                                                                                                                                
Red Dog  Mine has  a trades and  apprenticeship program,  and the                                                               
programs are  listed on  the slide  above. Red  Dog is  the first                                                               
mine in North  America to work with the U.S.  Department of Labor                                                               
to  develop a  federally recognized  apprenticeship program,  the                                                               
Mill Operator Apprenticeship  Program. Highly trained individuals                                                               
are  coming  out  of  these   programs.  These  achievements  are                                                               
significant.                                                                                                                    
                                                                                                                                
MR.  HALL  advanced   to  slide  25,  Alaska   Built  and  Alaska                                                               
Infrastructure. The  slide shows two building  modules. One photo                                                               
shows a  heavy piece of  equipment transporting  a mammoth-sized,                                                               
prefabricated  powerhouse module;  it was  built in  the Port  of                                                               
Anchorage.  The  other  photos  are  of  the  expanded  personnel                                                               
accommodations  complex. All  of the  accommodation modules  were                                                               
built in a facility located in  Big Lake, then transported to and                                                               
assembled at the  mine site. He reiterated that  the modules were                                                               
built in Alaska and employed Alaskans.                                                                                          
                                                                                                                                
4:12:16 PM                                                                                                                    
MR.  HALL  advanced   to  slide  26,  Alaska   Built  and  Alaska                                                               
Infrastructure.  Pictured in  the slide  are the  DeLong Mountain                                                               
Regional Transportation  Port Facility  and associated  road. The                                                               
facility is  a state asset and  a great example of  the financing                                                               
work done by AIDEA. He expressed  his belief that two of Alaska's                                                               
largest  buildings,  by  square  footage,  are  located  in  this                                                               
complex. Red  Dog stores  its concentrates  all winter  long here                                                               
while waiting  for the Chukchi  Sea's spring thaw.  Also pictured                                                               
on slide 26  is the Kiana Junior High  School. Eleven communities                                                               
qualified  themselves  to tap  into  the  bond market  when  they                                                               
formed  a borough.  All but  one of  the eleven  communities have                                                               
used the bond  market to build a new school;  the eleventh is yet                                                               
to be built.                                                                                                                    
                                                                                                                                
4:13:31 PM                                                                                                                    
SENATOR BISHOP commented  on slide 24, Jobs  and Livelihoods, In-                                                               
House  Apprenticeship  Program.  He noted  that  apprentices  are                                                               
employed in 25 percent of the  total trade positions in the mine.                                                               
The mine  does not  have to  look as hard  to find  its workforce                                                               
when this model is embraced.  When recruitment starts from day 1,                                                               
employees are  indoctrinated into the model.  It makes recruiting                                                               
easier for the  Human Resources Office and it is  the right thing                                                               
to do.                                                                                                                          
                                                                                                                                
MR. HALL commented  that having a ready work horse  that wants to                                                               
embrace a lot those trades has been a successful model.                                                                         
                                                                                                                                
4:14:31 PM                                                                                                                    
CHAIR REVAK  asked whether  Red Dog Mine  produces 75  percent of                                                               
the nation's zinc consumption.                                                                                                  
                                                                                                                                
MR. HALL answered not consumption.  Out of all the zinc producers                                                               
in the  United States, Red  Dog Mine  produces 75 percent  of the                                                               
nation's output.                                                                                                                
                                                                                                                                
CHAIR REVAK  asked whether any of  that zinc is used  for dietary                                                               
supplement.                                                                                                                     
                                                                                                                                
MR.  HALL  answered  yes.  The  United  Nations  Children's  Fund                                                               
(UNICEF) has  a program that  combines salts with zinc,  the Zinc                                                               
Association  is   involved  with  this  program.   In  developing                                                               
nations, a  lot of youth and  babies die from dehydration  due to                                                               
diarrhea. The hydration salts have  been incredibly successful in                                                               
reducing  child  mortality  due  to  dehydration.  A  very  small                                                               
portion of  production is used  in rehydration tablets;  but yes,                                                               
zinc is used as a dietary supplement.                                                                                           
                                                                                                                                
CHAIR REVAK said  that is fantastic. He has  become more familiar                                                               
with  zinc's  immune system  benefits  over  the last  couple  of                                                               
years. To think that a mine  in the NAB could be benefiting, even                                                               
saving lives by improving the immune system is interesting.                                                                     
                                                                                                                                
4:16:02 PM                                                                                                                    
SENATOR  STEVENS  asked  for more  information  about  the  state                                                               
reclamation fund; where  the money comes from; where  it is right                                                               
now; and can Alaskans be  assured that sufficient funds have been                                                               
set aside.                                                                                                                      
                                                                                                                                
MS.  MATTHIAS  answered that  a  company  must set  up  financial                                                               
reassurance  before  completing  much  work  and  start-up.  Some                                                               
financial  instruments  are  available,  like  bonding,  and  she                                                               
expressed surprise that the law still  allows a company to put up                                                               
gold. Financial reassurance is like an insurance policy.                                                                        
                                                                                                                                
MS. MATTHIAS  said that the  longer a  mine is in  operation, the                                                               
greater  the reclamation  effort required.  The opposite  is also                                                               
true.  A shorter-lived  mine  requires  less habitat  restoration                                                               
effort. It is  more economical and in its interest  for a mine to                                                               
complete the  work while  staff and  equipment are  still on-site                                                               
before the  mine ceases operations. If  the mine fails to  do the                                                               
reclamation  work, the  state will  assess  the reclamation  cost                                                               
based on  using third-party  contractors, and  third-party audits                                                               
will oversee the work. A company  that uses its own on-site staff                                                               
and equipment is a more  cost-effective reclamation strategy than                                                               
walking  away,  letting the  state  take  hold of  the  financial                                                               
instrument,  and hiring  third-party contractors  to do  the job.                                                               
Each mine  has its own  individual financial assurance;  money is                                                               
not  pooled.  Small mine  reclamation  works  differently, but  a                                                               
specific  amount is  set aside  for  large mines.  The amount  is                                                               
periodically updated so  that the state can step in  at any stage                                                               
of  operation  and take  care  of  reclamation using  third-party                                                               
contractors.                                                                                                                    
                                                                                                                                
4:18:21 PM                                                                                                                    
CHAIR  REVAK drew  attention to  the map  with many  projects and                                                               
prospects and  the disproportionate  number of  mines, commenting                                                               
that  it  would   seem  the  number  of  mines   should  be  more                                                               
significant. He  questioned the ratio  of projects  and prospects                                                               
to  the  number  of  large mines.  He  asked  whether  permitting                                                               
complicates  the  process  of  developing a  mine  and  what  the                                                               
legislature could do to help the process.                                                                                       
                                                                                                                                
MS.   SKIBINSKI   replied   that    the   ratio   of   mines   is                                                               
disproportionately low  to the number of  projects and prospects.                                                               
She  pointed out  that the  geographic distribution  of deposits,                                                               
stating  they  are far  from  infrastructure,  roads, ports,  and                                                               
energy sources.  If some of these  deposits were in Nevada,  on a                                                               
road  system,   they  would   already  be   developed.  Available                                                               
infrastructure makes  development tremendously  cheaper. However,                                                               
a lack of infrastructure does  prevent development, and the state                                                               
has good examples of companies  that successfully developed mines                                                               
in challenging  areas. Mr.  Hall could  give statistics  on AIDEA                                                               
funding  which helped  make  the  DeLong Mountain  transportation                                                               
system a  reality. Using  AIDEA to invest  in the  development of                                                               
infrastructure is a good step  towards getting a mine online. The                                                               
legislature   could  help   by   finding   ways  to   incentivize                                                               
infrastructure,   large  company   investment   in  Alaska,   and                                                               
encourage companies  that want to invest  significant capital for                                                               
a mine. Slide 9 shows the  timeline for the development of a mine                                                               
but  does not  show  the  100s of  millions  if  not billions  of                                                               
dollars   spent   on   exploring,  permitting,   and   ultimately                                                               
constructing a project.                                                                                                         
                                                                                                                                
MS. SKIBINSKI  said the legislature  could send the  message that                                                               
Alaska is a  secure place to spend your big  dollars, and as long                                                               
as the  regulatory tests  of our  nation's permitting  system are                                                               
met,  your mine  will  be permitted  and constructed.  Regulatory                                                               
certainty,  the cost  of infrastructure,  and building  in Alaska                                                               
are the biggest factors investors consider.                                                                                     
                                                                                                                                
MS. MATTHIAS drew attention to the  diamonds on the map of mines,                                                               
projects, and  prospects. The diamonds are  projects somewhere in                                                               
between  early   exploration  and  advanced   development.  These                                                               
projects  have   invested  a  significant  amount   of  money  to                                                               
determine:                                                                                                                      
- if what they think is there is in enough quantity, and                                                                        
- if the grade is high enough                                                                                                   
to be economically feasible to build a mine.                                                                                    
                                                                                                                                
MS.  MATTHIAS said  the circles  are prospects.  Circles indicate                                                               
geologists  have   a  good  indication  of   potential,  but  the                                                               
significant  drilling  required  to determine  what  is  actually                                                               
there has not been completed. Do  not assume the circles could be                                                               
a  mine tomorrow;  they  are  at the  very  beginning  of a  long                                                               
process. Circles  must explore, drill, and  assess results before                                                               
looking at  a preliminary economic  assessment to  determine mine                                                               
feasibility. Then, they  drill some more, explore  some more, and                                                               
work  some  more  while  simultaneously  launching  environmental                                                               
studies, all in  an effort to get closer to  making a decision on                                                               
whether or not to  build. A lot of holes are  drilled that do not                                                               
immediately result in a mine.                                                                                                   
                                                                                                                                
4:23:16 PM                                                                                                                    
CHAIR  REVAK  expressed  uncertainty whether  the  Ambler  Mining                                                               
District is a diamond or a circle  but expects a lot of money was                                                               
spent to get where they are  in the process. The discussion today                                                               
mentioned permitting,  but access  is also another  challenge for                                                               
mines.  It is  upsetting to  see that  the carpet  was pulled-out                                                               
from under the Ambler project, and  he asked what kind of message                                                               
this  sends to  the industry.  He  inquired about  the status  of                                                               
moving forward to deliver needed minerals to the world.                                                                         
                                                                                                                                
MR.  HALL  answered a  message  of  frustration. He  addressed  a                                                               
previously  asked question  about opportunities.  One opportunity                                                               
is to consider areas where  Alaska can do the permitting in-house                                                               
rather than through  the federal government. When  the state went                                                               
through the  process of obtaining  primacy under the  Clean Water                                                               
Act  for  the APS  program,  the  Red  Dog Mine  operations  were                                                               
greatly  impacted. The  permits are  still rigorous  and have  to                                                               
meet  all   the  Clean  Water  Act   requirements,  but  Alaskans                                                               
understand  the  context,  land,  and water  bodies,  making  the                                                               
process  smoother.  The  primary  hurdle  for  mines  is  wetland                                                               
permitting. He expressed his belief  that wetland permitting is a                                                               
key  opportunity  and  encouraged  the  legislature  to  consider                                                               
taking  primacy over  the wetlands  program. Also,  fund agencies                                                               
well enough; the industry needs good people to get permits.                                                                     
                                                                                                                                
MS.  SKIBINSKI   added  to  Mr.  Hall's   comment  regarding  the                                                               
frustrating Ambler  Road decision.  With the exception  of ANCSA,                                                               
the  Alaska National  Interest  Lands  Conservation Act  (ANILCA)                                                               
governs  all state  land ownership.  ANILCA specifically  granted                                                               
Ambler access,  through the area,  to get to a  known mineralized                                                               
region.  This fact  adds  insult to  injury in  the  case of  the                                                               
Ambler project and the Alaska  Miners Association was dismayed by                                                               
the decision.                                                                                                                   
                                                                                                                                
4:26:32 PM                                                                                                                    
CHAIR  REVAK agreed  with Ms.  Skibinski's statement,  especially                                                               
given  the  Russian  hostilities  in Ukraine  and  the  focus  on                                                               
critical and  strategic minerals. The federal  government is also                                                               
pushing  green  and  renewable energy  infrastructure,  which  is                                                               
great,  but the  conversation with  Alaska's regulatory  partners                                                               
has  been frustrating.  The fact  is  that every  ounce of  green                                                               
energy infrastructure is mined from  the ground. He asked whether                                                               
Alaska's  regulatory partners  understand the  connection between                                                               
green energy infrastructure and mining.                                                                                         
                                                                                                                                
MS.  SKIBINSKI  answered that  on  the  federal level,  officials                                                               
indicate they understand the need  for a huge increase in mineral                                                               
production   to  meet   the  nation's   alternative  energy   and                                                               
technology  goals.  Unfortunately,  their actions  do  not  match                                                               
their words.                                                                                                                    
                                                                                                                                
CHAIR REVAK stated that Alaska  has about every strategic mineral                                                               
the nation might  need. He asked how much progress  has been made                                                               
towards the production of strategic minerals in the state.                                                                      
                                                                                                                                
MS. SKIBINSKI  defined the  difference between  critical minerals                                                               
and  strategic minerals.  Critical means  that you  need it,  and                                                               
strategic means that  you do not have it. A  strategic mineral is                                                               
available in the ground, but the  country is not producing it and                                                               
does not have  access to it. She emphasized a  mine can extract a                                                               
strategic  mineral from  the  ground and  put  it in  production.                                                               
Alaska has  strategic rare earth  minerals that are  not produced                                                               
domestically,  for example,  cobalt. The  industry would  like to                                                               
pursue the production of domestic mineral deposits in Alaska.                                                                   
                                                                                                                                
CHAIR  REVAK asked  what  the challenges  for  mining rare  earth                                                               
minerals  are; the  status of  cobalt mining  in Alaska;  and the                                                               
hurdles to strategic mineral production.                                                                                        
                                                                                                                                
MS.  SKIBINSKI answered  that one  of the  most promising  cobalt                                                               
deposits was in the Ambler Mining District.                                                                                     
                                                                                                                                
CHAIR REVAK commented  that the nation has begged  for rare earth                                                               
mineral  production  to  reduce reliance  on  aggressive  foreign                                                               
countries. He stressed  the importance of talking  about the lack                                                               
of  domestic  production,  especially  as the  war  continues  in                                                               
Eastern Europe. The  federal decision to roll-back  on Ambler was                                                               
a blow.  He asked  whether there  is hope  for the  production of                                                               
strategic minerals.                                                                                                             
                                                                                                                                
MS. SKIBINSKI answered yes. The  Department of the Interior (DOI)                                                               
asked the  court to vacate  the lawsuit brought  by environmental                                                               
nongovernmental  organizations (ENGOs).  DOI  announced its  plan                                                               
for more consultations  with the region and  reexamination of the                                                               
environmental  analysis.   DOI  did   not  veto  nor   use  other                                                               
mechanisms  to take  it off  the table.  She reiterated  that the                                                               
process  was  transparent and  thorough  and  went through  three                                                               
different  administrations. Unfortunately,  the delay  is costly.                                                               
DOI plans  to re-engage in the  process, optimistically speaking,                                                               
the reexamination might lead to an approval.                                                                                    
                                                                                                                                
4:31:44 PM                                                                                                                    
MS.  MATTHIAS cautioned  members not  to limit  the focus  to the                                                               
list of critical and strategic  minerals. The problem with making                                                               
lists is  that it leads to  questioning why an item  got left off                                                               
or  put on.  DOI put  zinc  on the  2022 Final  List of  Critical                                                               
Minerals this  year, which  is great  because zinc  is important.                                                               
However,  copper  did  not  make  the list  because  there  is  a                                                               
sufficient   supply  domestically.   Herein  lies   the  problem.                                                               
International  organizations,   like  the   International  Energy                                                               
Agency and  the World  Bank, have emphasized  a huge  increase in                                                               
copper will  be needed for renewable  technologies and electrical                                                               
transmission.  This  was  discussed early  in  the  presentation.                                                               
America needs to produce more  copper, and its development should                                                               
not be  ignored just because  it is not  on the list.  Ambler and                                                               
Pebble  are  among multiple  sites  in  Alaska that  have  copper                                                               
deposits.  The  state  should  look  at  all  minerals  that  are                                                               
currently  produced,   their  use   and  need   domestically  and                                                               
globally, and  look at  minerals that  could be  produced whether                                                               
the minerals are on a list or not.                                                                                              
                                                                                                                                
4:33:10 PM                                                                                                                    
SENATOR  STEVENS  asked  the presenters  to  reflect  on  foreign                                                               
ownership  of  mining  in  Alaska.  He  expressed  concern  about                                                               
foreign ownership  in the fishing  industry, and  assumed foreign                                                               
ownership  is also  a concern  in  mining. He  asked whether  any                                                               
mines are  Chinese-owned and  why so  few American  companies are                                                               
involved in mining.                                                                                                             
                                                                                                                                
MS. MATTHIAS answered Alaska has  six large mines. Three are U.S.                                                               
owned companies,  two are Canadian  owned, and one  is Australian                                                               
owned.  She  argued  that  every   industry  in  this  state  has                                                               
benefitted from foreign  investments, including fishing, tourism,                                                               
mining, oil, and  others. Mining requires huge sums  of money for                                                               
exploration let  alone bringing a  mine into  development. Access                                                               
to a large  amount of capital is imperative as  well as access to                                                               
expertise. It makes  sense to reach out to  an investment partner                                                               
rather  than putting  all an  organization's  resources into  one                                                               
venture, consider NANA in this  scenario. In the mining industry,                                                               
it is standard  to reach out to companies who  have resources and                                                               
expertise,   choosing  selectively   to  find   the  right   fit.                                                               
Attracting  investors is  not a  bad thing  for Alaska.  In fact,                                                               
most  countries  and  jurisdictions compete  to  attract  foreign                                                               
investment. She summated  that yes, mines in  Alaska have foreign                                                               
owners. They  brought investment  capital making it  possible for                                                               
the  mine to  produce. Mining  stimulates the  economy, increases                                                               
the gross  state product, and  helps Alaskans buy items  that are                                                               
not produced here, whether it is  cars, food or other items which                                                               
come in on ships, barges, and planes.                                                                                           
                                                                                                                                
4:35:34 PM                                                                                                                    
SENATOR  STEVENS acknowledged  the point  then expressed  concern                                                               
about entangling alliances. He explained  that it would not be in                                                               
the best interest of Alaska  to have large countries, like Russia                                                               
and  China,   involved  in  the   state's  mining   industry.  He                                                               
illustrated  the concern  by directing  attention to  the current                                                               
affairs  unfolding  in  Europe,  Germany's  reliance  on  Russian                                                               
energy,  and  Germany's reluctance  to  take  a hard  stance.  He                                                               
expressed hope that  the mining industry here  is never entangled                                                               
politically.                                                                                                                    
                                                                                                                                
MS. MATTHIAS replied that she is  not aware of Russian or Chinese                                                               
investments at-scale in Alaska, and  certainly not in the Council                                                               
of Alaska Producers (CAP) membership.                                                                                           
                                                                                                                                
MS. SKIBINSKI added  that she is not aware of  Russian or Chinese                                                               
investments at  any scale but  will research  it and get  back to                                                               
the committee.                                                                                                                  
                                                                                                                                
4:36:45 PM                                                                                                                    
CHAIR REVAK  agreed with  Senator Stevens.  Alaska relies  on oil                                                               
from Russian neighbors for mining  hydrocarbons; Alaska spent $20                                                               
billion last  year. He expressed  interest in what  percentage of                                                               
the Russian GPD $20 billion totaled.                                                                                            
                                                                                                                                
4:37:12 PM                                                                                                                    
SENATOR  KIEHL redirected  the discussion  from international  to                                                               
inter-state. He repeated Mr. Hall's  statistic that 73 percent of                                                               
Teck-Alaska's employees live in-state,  and the number of Alaskan                                                               
employees  varies   among  large   mines.  Certainly,   the  high                                                               
apprentice utilization is a great  step. He asked what additional                                                               
steps were  taken to increase  the number of Alaskans  working in                                                               
the Alaska mining industry.                                                                                                     
                                                                                                                                
MR. HALL answered that he cannot speak to other mines, but Teck-                                                                
Alaska  targets development  opportunities,  like the  apprentice                                                               
program.  A   program  that  has   not  been  discussed   is  the                                                               
Accelerated  Development  Program  for Leadership  which  selects                                                               
candidates  according to  their potential  to become  leaders and                                                               
providing tools  to help  them. For  instance, the  program would                                                               
target  someone exhibiting  good leadership  skills over  someone                                                               
exhibiting   good  welding   skills.  The   program  focuses   on                                                               
leadership   development   and   advancing   the   candidate   to                                                               
supervisory  opportunities.  Teck-Alaska  targets where  it  puts                                                               
money  associated with  bursary scholarships.  The purpose  is to                                                               
recruit youth from the region  to enter mining careers and direct                                                               
them to  postsecondary education  degrees. It can  be challenging                                                               
and not everyone  is cutout for a rotational  job at Teck-Alaska.                                                               
The idea  is to support a  young person through school,  but that                                                               
person may  end up  being very marketable  in another  place. For                                                               
example, one young, great NANA  shareholder with an environmental                                                               
degree did  a job  for a  year. It was  not a  good fit  for him,                                                               
which   is  fine,   because  the   job  is   supposed  to   be  a                                                               
steppingstone.   Now  he   works   for   Arctic  Slope   Regional                                                               
Corporation (ASRC).  Teck-Alaska tries  to think  of new  ways to                                                               
generate local  jobs and develop  people, focusing  on education,                                                               
youth, developing the people that  you have, and being deliberate                                                               
and purposeful.                                                                                                                 
                                                                                                                                
MS. MATTHIAS  added that  each mine is  different. Mines  want to                                                               
hire  Alaskans, support  vocational  training, scholarships,  and                                                               
programs  that  prepare  workers  for the  mining  industry.  The                                                               
following  programs demonstrate  the industry's  desire to  reach                                                               
out and provide opportunities for  those with college degrees and                                                               
high school diplomas alike:                                                                                                     
                                                                                                                                
- Delta  Junction has  an underground  mine training  center. Two                                                               
Juneau  mines use  the Delta  Mine Training  Center to  train new                                                               
hires.  Pogo is  an underground  mine in  the Interior  that also                                                               
uses the training center.                                                                                                       
                                                                                                                                
-  Both Juneau's  mines collaborated  with University  of Alaska-                                                               
Southeast (UAS) to offer the Pathway to Mining Careers program.                                                                 
                                                                                                                                
- The  University of Alaska-Fairbanks has  the mining engineering                                                               
and geology programs.                                                                                                           
                                                                                                                                
A project  is at an  advantage when it  can plan years  ahead for                                                               
its workforce  needs. Donlin  Mine reached  out to  middle school                                                               
students years  before start-up. The mine  provided middle school                                                               
students  with information  about  job availability,  emphasizing                                                               
the  mine's  need  for accountants,  food  service  staff,  human                                                               
resources  staff,  logisticians,  and miners.  Mines  located  in                                                               
remote sites  are micro-communities. If  you can think of  a job,                                                               
you can probably do it at a remote location.                                                                                    
                                                                                                                                
4:42:38 PM                                                                                                                    
SENATOR BISHOP revisited the issue of permitting.                                                                               
                                                                                                                                
4:42:45 PM                                                                                                                    
SENATOR  KIEHL  asked  about  extending   the  life  of  a  mine,                                                               
significant expansions, and the permitting process involved.                                                                    
                                                                                                                                
MR. HALL  replied that  extending mine life  falls into  two main                                                               
areas:                                                                                                                          
                                                                                                                                
First, continued exploration of the  mine. He gave the example of                                                               
a  potential  opportunity  under consideration  about  ten  miles                                                               
north of  the Red Dog  Mine, underground  and on state  land. Red                                                               
Dog hopes  to obtain the  ore from  that location and  process it                                                               
through  its facility.  Red Dog  is  currently in  the middle  of                                                               
permitting  a  road, obtaining  an  air  permit, and  underground                                                               
drilling, which  is needed to  get the  data necessary to  make a                                                               
determination  on  project  viability.  Right  now,  it  is  only                                                               
possible to drill in the  summertime. By going underground, it is                                                               
possible to drill  year-round which will speed up  the process of                                                               
collecting  data. A  host of  permits are  required for  housing,                                                               
potable water,  wetland permits, etcetera; permitting  requires a                                                               
significant amount  of time and  engagement. This is true  for an                                                               
advanced exploration  project too.  Once the  exploration project                                                               
is permitted and the company  makes the decision to move forward,                                                               
the mine has to go  through another permitting process to extract                                                               
the  ore  source. Extending  mine  life  requires taking  a  long                                                               
approach and  questioning whether the  mine can prove up  and get                                                               
permitted before running out of its present source of ore.                                                                      
                                                                                                                                
Second, mines find ways to  make unprofitable ore, known as waste                                                               
rock, profitable  by using innovations and  technology to improve                                                               
mining processes. Here are some examples:                                                                                       
                                                                                                                                
- Xray Fluorescence  (XRF) technology mounted on the  bucket of a                                                               
loader can indicate whether the load is ore or waste rock.                                                                      
                                                                                                                                
- machines with optics examine  pieces of crushed ore, separating                                                               
the ore from the waste rock.  The process results in the delivery                                                               
of a richer ore to the milling facility.                                                                                        
                                                                                                                                
-  a  host of  other  technology  and  innovation that  allows  a                                                               
company to re-mine a previously mined area.                                                                                     
                                                                                                                                
4:46:21 PM                                                                                                                    
SENATOR BISHOP reviewed the timeframes  on the Mining Development                                                               
Takes Time chart. He expressed his  belief that it took about ten                                                               
years  from inception  to initial  drilling  to constructing  the                                                               
Pogo Mine road. Pogo Mine  was a relatively fast process compared                                                               
to  Kensington Mine,  which took  about 20  years. He  referenced                                                               
Senator Stevens' previous  ownership question, stating Kensington                                                               
needed a  sizeable deposit  and deep pockets  to obtain  the cash                                                               
flow to  stay in the game  for 20 years. An  independent operator                                                               
probably would not have the resources  to time value the money on                                                               
the return for a project like Kensington.                                                                                       
                                                                                                                                
SENATOR BISHOP  directed the conversation to  permitting, stating                                                               
the legislature  leaned into  staffing to  some degree  last year                                                               
and  boosted DNR's  permit personnel.  There  are a  lot of  fine                                                               
required permits,  but mining progress stalls  without sufficient                                                               
staff  to execute  them  at  DNR, ADF&G,  and  the Department  of                                                               
Environmental Conservation (DEC).                                                                                               
                                                                                                                                
SENATOR BISHOP  brought up the  Section 404 wetlands  program. As                                                               
long as  he has been at  the Senate Finance Committee  table, DNR                                                               
has received  budget allocations towards state  wetlands primacy.                                                               
Hopefully  state  wetlands  primacy  will  happen  someday.  This                                                               
jurisdictional  argument goes  back to  ANILCA. Alaska  cannot do                                                               
anything  about it,  but Congress  could hold  the Army  Corps of                                                               
Engineers' feet  to the fire  on the 1987 definition  of wetlands                                                               
as  well  as its  new  1994  interpretation.  On the  subject  of                                                               
permitting  impediments,  supporters   of  renewable  energy  are                                                               
experiencing similar  delays in permitting. The  complaint is how                                                               
hard  it is  to execute  projects  due to  an arduous  permitting                                                               
system.  Maybe the  processing  duration would  speed  up if  the                                                               
country joined forces to re-examine its permitting process.                                                                     
                                                                                                                                
4:50:10 PM                                                                                                                    
CHAIR REVAK stated that today's  presentation and discussion were                                                               
important. He expressed  his belief that some of  the hurdles and                                                               
hindrances have less  to do with environmentalism and  more to do                                                               
with stopping  production. He  hears and  sees that  the industry                                                               
goal  is good  stewardship of  the environment.  The question  is                                                               
whether   the  goal   is  responsible   development  or   halting                                                               
production. He warned that halting production is a dangerous                                                                    
position to take with all that is going on in the world.                                                                        
                                                                                                                                
4:51:29 PM                                                                                                                    
There being no further business to come before the committee,                                                                   
Chair Revak adjourned the Senate Resources Standing Committee                                                                   
meeting at 4:51 p.m.                                                                                                            

Document Name Date/Time Subjects
Mining Industry Update to Senate Resources 2.28.2022.pdf SRES 2/28/2022 3:30:00 PM