Legislature(1993 - 1994)
02/04/1994 03:40 PM Senate RES
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SENATE RESOURCES COMMITTEE
February 4, 1994
3:40 P.M.
MEMBERS PRESENT
Senator Mike Miller, Chairman
Senator Loren Leman, Vice Chairman
Senator Steve Frank
Senator Drue Pearce
Senator Al Adams
Senator Fred Zharoff
MEMBERS ABSENT
Senator Dave Donley
COMMITTEE CALENDAR
SENATE BILL NO. 210
"An Act relating to disposal of state land within five miles of the
right-of-way of the Dalton Highway to a licensed public utility or
a licensed common carrier."
SENATE BILL NO. 240
"An Act relating to an optional municipal tax credit for costs of
certain river habitat protection improvements."
SENATE BILL NO. 202
"An Act relating to the removal, appropriation, and purchase of
state water by municipalities; and providing for an effective
date."
SCHEDULED, BUT NOT HEARD THIS DAY
PREVIOUS ACTION
SB 210 - No previous action to record.
SB 240 - See Resources minutes dated 2/4/94.
SB 202 - See Community & Regional Affairs minutes dated
1/13/94, 1/20/94.
WITNESS REGISTER
Senator Sharp
State Capitol
Juneau, Ak. 99801-1182
POSITION STATEMENT: Sponsor of the CS to SB 210.
Rick Smith, Manager
Northern Regional Office
Department of Natural Resources
3700 Airport Way
Fairbanks, Ak. 99709-4699
POSITION STATEMENT: Supported SB 210.
Judy Stoop
Summit Telephone
2014 Eagan Ave.
Fairbanks, Ak. 99701
POSITION STATEMENT: Supported SB 210.
Mick Manns
Paradise Valley
Bettles, Ak. 99726
POSITION STATEMENT: Supported SB 210.
Dave Lacey
P.O. Box 71372
Fairbanks, Ak. 99707
POSITION STATEMENT: Opposed SB 210.
Earl Finkler
City of Barrow
Box 629
Barrow, Ak. 99723
POSITION STATEMENT: Commented on SB 210.
Gerald Gallagher, Director
Division of Mining
Department of Natural Resources
P.O. Box 107016
Anchorage, Ak. 99510-7016
POSITION STATEMENT: Supported and commented on SB 210.
Representative Gene Therriault
State Capitol
Juneau, Ak. 99801-1182
POSITION STATEMENT: Supported SB 210.
Leo Oberts
1440 Chinook Ct.
Kenai, Ak. 9961
POSITION STATEMENT: Commented on SB 210.
Don Gilman
Kenai Peninsula Borough
144 N. Binkley
Soldotna, Ak. 99669
POSITION STATEMENT: Supported SB 210.
Jim Richardson
308 G Street
Anchorage, Ak. 99501
POSITION STATEMENT: Supported and commented on SB 210.
ACTION NARRATIVE
TAPE 94-5, SIDE A
Number 001
CHAIRMAN MILLER called the Resources Committee meeting to order at
3:10 p.m. and announced SB 210 (DISPOSAL OF DALTON HWY RIGHT-OF-WAY AY
LAND) to be up for consideration.
SENATOR SHARP explained the proposed CS to SB 210. Under current
statute the state is prohibited from disposing of or leasing state
land within five miles of the right-of-way of the Dalton Highway.
He said total prohibition seems harsh since they have received
testimony saying we need better communications up there.
Number 75
SENATOR ADAMS asked if he preferred lease or sale of the property.
SENATOR SHARP said he had no preference as long as the lease would
be long enough to allow amortization of the type of facility that
would be considered on utilities.
SENATOR ADAMS said he agreed with that, but his real concern is
lease/owning around the Dalton Highway because of the environment
and subsistence migration.
Number 94
RICK SMITH, Department of Natural Resources, said they support SB
210, because they have had difficulties because of the
prohibitions. DOT has applied for material for upgrading the Dead-
Horse airport that they are prohibited from issuing. They have had
indications from Coldfoot Services that they would like to expand
their lease to provide additional telephone services, among others.
SENATOR ADAMS said the North Slope Borough did not have a position
on this issue, yet, and asked how much land they were talking about
and what is the market value of it. MR. SMITH said he didn't know
the acreage. He said the state, a year ago, received and
additional 615,000 acres from the federal government along the
Dalton Highway. No market value has been done on that. The
present fiscal note is $0, because they don't think it would
substantially impact their operations at the time.
Number 130
SENATOR FRANK asked if they were bound by some fair market value
requirement in law? MR. SMITH answered they had that requirement
when they process a lease.
SENATOR ADAMS clarified his comment earlier stating he wanted a
positive fiscal note if they were going to lease or sell land.
SENATOR LEMAN asked him to describe in more detail the federal land
the state received recently along the Dalton Highway. MR. SMITH
said the land consisted of approximately 10 miles south of the
Yukon River Crossing, the development at Coldfoot and Happy Valley,
and a fairly large block of land located on the federal land north
of Happy Valley, which went east/west.
Number 155
SENATOR ADAMS asked how this would affect the portion of the
Highway that is not open to the public. MR. SMITH answered that
this legislation would not have any affect other than allowing
telephone service at Coldfoot. If the Dalton Highway was every
opened to the public, it would provide opportunity to supply
service the public would need.
Number 187
SENATOR ZHAROFF asked what was the length of the Dalton Highway.
SENATOR FRANK said it was about 430 miles.
Number 203
JUDY STOOP, Summit Telephone Co, Fairbanks, said they support SB
210, because they need it for efficient communications, especially
at Coldfoot and Wiseman. They feel, as much as possible, that land
should not be held by the state, but be available for purchase by
the people of Alaska.
Number 217
MICK MANNS, Paradise Valley, Bettles, supported SB 210, because of
all the reasons listed. Also, he said it is unconstitutional and
illegal to keep the road closed according to the Statehood Act. He
said the Dalton Highway would have to be developed if we were to be
competitive with other Pacific Rim nations and tourism.
Number 241
DAVE LACEY, Manager, Yukon River Tours, Fairbanks, said he is
involved in eco-tourism along the Dalton Highway. He opposed SB
210, because his clients want to see wilderness and undeveloped
areas. They can see development anywhere in the lower 48. Tourism
as an industry needs to protect what people come up here to see.
Number 273
EARL FINKLER, City of Barrow, recalled that the original purpose of
the prohibition was to protect the transportation and industrial
functions of the corridor. He asked if there had been any study of
how this would impact the future needs. He asked if there was a
land use plan for the areas under question.
Number 288
JERRY GALLAGHER, Department of Natural Resources, said this is a
very limited piece of legislation authorizing only the Department
to issue long term leases in some very specific and few development
nodes that are already identified and have existing facilities -
Coldfoot, Happy Valley, Franklin Bluffs, Yukon Crossing, and Dead
Horse. He explained that their leases will soon expire.
Number 327
REPRESENTATIVE THERRIAULT supported the proposed CS to SB 210. He
thought there was some misunderstanding as to the intent. He
supported Mr. Gallagher's testimony. The needs and areas are
addressed very specifically and these activities are already going
on along the road. Construction material can already be taken from
the 5 mile corridor for maintenance of the road, but not for the
airports. In addition, when many of the federal leases that have
been taken over by the state expire, the state has no authority to
reissue them without a change in statute.
Number 327
SENATOR LEMAN moved to adopt the CS to SB 210(RES) (8-LS1110/E
Luckhaupt). There were no objections and it was so ordered.
SENATOR LEMAN moved to discharge CSSB 210 (RES) with individual
recommendations. There were objections and Senator Miller asked
for a roll call vote: Senator Miller, Senator Leman, Senator Frank,
and Senator Pearce voted yes; Senator Adams and Senator Zharoff
voted no and CSSB 210 (RES) passed.
SENATOR MILLER announced SB 240 (MUNICIPAL TAX CREDIT/HABITAT
PROTECTION) to be up for consideration.
SENATOR PEARCE, Sponsor, said there is 80 - 90 acres along the
Kenai River that provide the habitat for the salmon fishery. She
hoped to encourage people who owned private land along the Kenai to
undertake stream rehabilitation with property tax credit
incentives.
SENATOR ADAMS noted that this could just be special interest
legislation directed only at the Kenai River and asked if the Chena
River and other areas could be included.
SENATOR PEARCE said Tam Cook believed the bill to be
constitutional.
SENATOR LEMAN asked if any other municipality had expressed
interest in this type of credit. SENATOR PEARCE answered not to
her.
SENATOR ZHAROFF said he has a policy of staying out of other
district's business and he thought it seemed unusual to have a
piece of legislation that affects one area of the state.
Number 472
LEO OBERTS, Kenai, said keeping the river in its natural test is
the highest and best use for the river when setting the value.
He said this refers to the lower tidal area which is completely
different from other areas of the river. He questioned using the
"ordinary high water" language. SENATOR PEARCE said this language
was provided by the Borough attorney.
SENATOR LITTLE commented that this bill currently involves not only
the Kenai River, but all of the tributaries. She was concerned
that it was very far reaching.
MR. OBERTS pointed out on page 17 that he didn't know what an
"untitled river" meant.
DON GILMAN supported Senator Pearce's comments. He said the
municipalities need this legislation to help deal with problems
along the river.
SENATOR ZHAROFF commented on the definition of "ordinary high water
line." He asked what kinds of activities would allow for the tax
credit to be used. MR. GILMAN said they are for improvements along
the river. Right now nothing is required above high water.
TAPE 94-5, SIDE B
Number 580
SENATOR ZHAROFF asked if the activity would take place within or
beyond 150 feet. MR. GILMAN said it was within 150 feet.
Number 573
JIM RICHARDSON, property owner on the Kenai River, supported SB
240. He hoped that tax incentives would be allowed for people who
leave the land in its natural state as well as for those who build
some beneficial project.
SENATOR MILLER thanked everyone for their testimony and adjourned
the meeting at 4:32 p.m.
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