Legislature(1993 - 1994)
03/21/1994 03:40 PM Senate RES
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SENATE RESOURCES COMMITTEE
March 21
3:40 P.M.
MEMBERS PRESENT
Senator Mike Miller, Chairman
Senator Loren Leman, Vice Chairman
Senator Steve Frank
Senator Drue Pearce
Senator Dave Donley
Senator Fred Zharoff
MEMBERS ABSENT
Senator Al Adams
COMMITTEE CALENDAR
CS FOR HOUSE BILL NO. 333(RES)
"An Act amending the Alaska Land Act to define the term `state
selected land' for the purpose of recognizing mining locations, and
giving retrospective effect to the amendment; and providing for an
effective date."
SENATE JOINT RESOLUTION NO. 21
Relating to efforts by the government of Mexico to protect gray
whales.
SENATE BILL NO. 339
"An Act relating to the management of state land and resources;
relating to certain remote parcel and homestead entry land purchase
contracts and patents; and providing for an effective date."
PREVIOUS ACTION
HB 333 - No previous action to record.
SJR 21 - No previous action to record.
SB 339 - See Resources minutes dated 3/18/94.
WITNESS REGISTER
Jack Phelps, Legislative Aid
c/o Representative Pete Kott
State Capital
Juneau, Ak. 99801-1182
POSITION STATEMENT: Commented on CSHB 333.
Gerry Gallagher, Director
Division of Mining
Department of Natural Resources
P.O. Box 107016
Anchorage, Ak. 99510-7016
POSITION STATEMENT: Supported CSHB 333 and SB 339.
Tom Boutin, Director
Division of Forestry
Department of Natural Resources
400 Willoughby Ave.
Juneau, Ak. 99801-1724
POSITION STATEMENT: Commented on SB 339.
Carol Carrol, Legislative Aide
c/o Senator Jay Kerttula
State Capitol
Juneau, Ak. 99801-1182
POSITION STATEMENT: Commented on SJR 21.
ACTION NARRATIVE
TAPE 94-23, SIDE A
Number 001
CHAIRMAN MILLER called the Resources Committee meeting to order at
3:40 p.m. and announced HB 333 (MINING LOCATIONS ON STATE SELECTED D
LAND) to be up for consideration.
JACK PHELPS, Legislative Aide to Representative Kott, said HB 333
is a very simple measure. It addresses a situation where a miner
holds a federal claim on land that has been selected by the state.
It allows him to relinquish his federal claim when the land is
conveyed to the state and convert to a state claim.
SENATOR FRANK said he thought claims of any kind would be
transferred. MR. PHELPS explained that a federal claim constitutes
a federal inholding and the land under the federal mining claim is
not actually conveyed to the state until the federal claim is
relinquished. The miner would have a choice of mining under a
federal claim or transferring to a state claim.
GERRY GALLAGHER, Department of Natural Resources, said if land in
a township was conveyed to the state, it would be conveyed
excluding those existing federal mining claims. MR. GALLAGHER said
the state probably has several thousand federal mining claims that
are essentially inholdings within the state selections.
SENATOR MILLER asked what would be the benefit of staying with a
federal claim. MR. GALLAGHER said there are two fundamental
differences - a federal claim has the right to patent and there is
no provision in Alaska law for that; and second, a federal mining
claim carries with it extralateral rights. That means if you stake
your claim on a vein, your rights travel with that vein wherever it
goes. Under state law there are vertical sidewalls so that you
only own your claim. Congress may change federal mining law,
however.
SENATOR FRANK asked about the royalty on federal claims. MR.
GALLAGHER said there is no royalty on federal claims, but numbers
are being discussed from 5% to 12% of the gross. The state royalty
is 3% of the net.
MR. GALLAGHER said the Department supports this bill.
SENATOR FRANK noted that the state would pick up some revenue from
those claims that converted. MR. GALLAGHER said that was correct.
SENATOR ZHAROFF asked if anyone opposed this measure. MR. PHELPS
answered that he knew of no one opposing it.
Number 133
SENATOR LEMAN moved to pass the CSHB 333 from Committee with
individual recommendations with the accompanying fiscal note.
There were no objections and it was so ordered.
SENATOR MILLER announced SJR 21 (THANK MEXICO FOR GRAY WHALE
PROTECTION) to be up for consideration.
CAROL CARROL, Legislative Aide to Senator Kerttula, stated that
gray whales no longer exist in the Atlantic Ocean and their status
in the western Pacific is uncertain, although it may be nearing
extinction. Only in the northern Pacific is the species no longer
endangered. Mexico has severely limited access to a number of
breeding and calving grounds to encourage growth of the species.
SENATOR ZHAROFF moved to pass SJR 21 from Committee with individual al
recommendations. There were no objections and it was so ordered.
Number 150
SENATOR MILLER announced SB 339 (MANAGEMENT OF STATE LAND AND
RESOURCES) to be up for consideration.
TOM BOUTIN, Director, Division if Forestry, explained section 20
provides that the Division of Forestry be able to offer sales under
certain conditions without the requirement in AS 38.05.113 that a
sale needs to be in a five year plan for at least the two prior
years. Section 21 amends AS 38.05.118 allowing long term
negotiated sales provided certain conditions exist.
MR. GALLAGHER explained that section 22 is the only oil and gas
provision. This removes a requirement that a lease sale be held
within 90 days of the quarter it's scheduled.
Section 23 allows the Commissioner to close land to mineral entry
in the future, but not valid existing rights. Section 24 deletes
language to make it consistent with every other business in the
state of Alaska. Section 25 they changed to make increments of $5
per acre annual rent rather than having it change at a specific
time so the Department can deal with whole numbers.
Section 26 changes "permit" to a long term lease to accommodate
miners who are trying to get financing. Section (b) exempts it
from competitive bidding procedures.
Section 27 clarifies language on "abandonment." Section 28
provides specific language to allow the Department to issue permits
for a slightly broader range of things than they have issued in the
past. This is particularly in reference to reindeer grazing.
Sections 29 through 32 are the conforming sections to the lands
package they discussed last week. He highlighted the repealer in
38.05.207 which is the section on production licenses which were
constructed in 1983 as a defense against the 6 (i) challenge.
SENATOR ZHAROFF asked if land that was used could be returned to
the state. MR. GALLAGHER said that was not discussed in this bill,
but he said he was willing to discuss the issue with him.
SENATOR ZHAROFF asked about the sections referring to fishing. MR.
GALLAGHER said under the current scheme setnet sites and
mariculture sites are treated different from every other type of
lease in the Department. Section 16 - 18 put those authorizations
into the standard department process for issuance which is
essentially competitive bidding. SENATOR ZHAROFF said he saw a lot
of problems if fishing sites were made available on a bid process.
For one thing there is enough confusion out there in just getting
people to lease sites, let alone going through the process of
bidding for a site location. He noted that the lease fee had
recently doubled without any public hearings or notification.
MR. GALLAGHER said he would welcome discussion on this issue.
SENATOR ZHAROFF said he saw a big problem with these provisions.
He said the system has been basically working, but if the bid
process is used people from out of state will get the sites.
SENATOR MILLER said he intended to bring the bill before the
Committee again next Monday and adjourned the meeting at 4:18 p.m.
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