HB 72: "An Act relating to timber on state lands; relating to timber management leases; and providing for an effective date."
00 HOUSE BILL NO. 72 01 "An Act relating to timber on state lands; relating to timber management leases; and 02 providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 36.30.850(b) is amended by adding a new paragraph to read: 05 (52) timber management leases under AS 38.05.124. 06 * Sec. 2. AS 38.05.035(e) is amended to read: 07 (e) Upon a written finding that the interests of the state will be best served, the 08 director may, with the consent of the commissioner, approve contracts for the sale, 09 lease, or other disposal of available land, resources, property, or interests in them. In 10 approving a contract under this subsection, the director need only prepare a single 11 written finding. In addition to the conditions and limitations imposed by law, the 12 director may impose additional conditions or limitations in the contracts as the director 13 determines, with the consent of the commissioner, will best serve the interests of the 14 state. The preparation and issuance of the written finding by the director are subject to
01 the following: 02 (1) with the consent of the commissioner and subject to the director's 03 discretion, for a specific proposed disposal of available land, resources, or property, or 04 of an interest in them, the director, in the written finding, 05 (A) shall establish the scope of the administrative review on 06 which the director's determination is based, and the scope of the written 07 finding supporting that determination; the scope of the administrative review 08 and finding may address only reasonably foreseeable, significant effects of the 09 uses proposed to be authorized by the disposal; 10 (B) may limit the scope of an administrative review and finding 11 for a proposed disposal to 12 (i) applicable statutes and regulations; 13 (ii) the facts pertaining to the land, resources, or 14 property, or interest in them, that the director finds are material to the 15 determination and that are known to the director or knowledge of which 16 is made available to the director during the administrative review; and 17 (iii) issues that, based on the statutes and regulations 18 referred to in (i) of this subparagraph, on the facts as described in (ii) of 19 this subparagraph, and on the nature of the uses sought to be authorized 20 by the disposal, the director finds are material to the determination of 21 whether the proposed disposal will best serve the interests of the state; 22 and 23 (C) may, if the project for which the proposed disposal is 24 sought is a multiphased development, limit the scope of an administrative 25 review and finding for the proposed disposal to the applicable statutes and 26 regulations, facts, and issues identified in (B)(i) - (iii) of this paragraph that 27 pertain solely to the disposal phase of the project when 28 (i) the only uses to be authorized by the proposed 29 disposal are part of that phase; 30 (ii) the disposal is a disposal of oil and gas, or of gas 31 only, and, before the next phase of the project may proceed, public
01 notice and the opportunity to comment are provided under regulations 02 adopted by the department; 03 (iii) the department's approval is required before the 04 next phase of the project may proceed; and 05 (iv) the department describes its reasons for a decision 06 to phase; 07 (2) the director shall discuss in the written finding prepared and issued 08 under this subsection the reasons that each of the following was not material to the 09 director's determination that the interests of the state will be best served: 10 (A) facts pertaining to the land, resources, or property, or an 11 interest in them other than those that the director finds material under (1)(B)(ii) 12 of this subsection; and 13 (B) issues based on the statutes and regulations referred to in 14 (1)(B)(i) of this subsection and on the facts described in (1)(B)(ii) of this 15 subsection; 16 (3) a written finding for an oil and gas lease sale or gas only lease sale 17 under AS 38.05.180 is subject to (g) of this section; 18 (4) a contract for the sale, lease, or other disposal of available land or 19 an interest in land is not legally binding on the state until the commissioner approves 20 the contract, but if the appraised value is not greater than $50,000 in the case of the 21 sale of land or an interest in land, or $5,000 in the case of the annual rental of land or 22 interest in land, the director may execute the contract without the approval of the 23 commissioner; 24 (5) public notice requirements relating to the sale, lease, or other 25 disposal of available land or an interest in land for oil and gas, or for gas only, 26 proposed to be scheduled in the five-year oil and gas leasing program under 27 AS 38.05.180(b), except for a sale under (6)(F) of this subsection, are as follows: 28 (A) before a public hearing, if held, or in any case not less than 29 180 days before the sale, lease, or other disposal of available land or an interest 30 in land, the director shall make available to the public a preliminary written 31 finding that states the scope of the review established under (1)(A) of this
01 subsection and includes the applicable statutes and regulations, the material 02 facts and issues in accordance with (1)(B) of this subsection, and information 03 required by (g) of this section, upon which the determination that the sale, 04 lease, or other disposal will serve the best interests of the state will be based; 05 the director shall provide opportunity for public comment on the preliminary 06 written finding for a period of not less than 60 days; 07 (B) after the public comment period for the preliminary written 08 finding and not less than 90 days before the sale, lease, or other disposal of 09 available land or an interest in land for oil and gas or for gas only, the director 10 shall make available to the public a final written finding that states the scope of 11 the review established under (1)(A) of this subsection and includes the 12 applicable statutes and regulations, the material facts and issues in accordance 13 with (1) of this subsection, and information required by (g) of this section, 14 upon which the determination that the sale, lease, or other disposal will serve 15 the best interests of the state is based; 16 (6) before a public hearing, if held, or in any case not less than 21 days 17 before the sale, lease, or other disposal of available land, property, resources, or 18 interests in them other than a sale, lease, or other disposal of available land or an 19 interest in land for oil and gas or for gas only under (5) of this subsection, the director 20 shall make available to the public a written finding that, in accordance with (1) of this 21 subsection, sets out the material facts and applicable statutes and regulations and any 22 other information required by statute or regulation to be considered upon which the 23 determination that the sale, lease, or other disposal will best serve the interests of the 24 state was based; however, a written finding is not required before the approval of 25 (A) a contract for a negotiated sale authorized under 26 AS 38.05.115; 27 (B) a lease of land for a shore fishery site under AS 38.05.082; 28 (C) a permit or other authorization revocable by the 29 commissioner; 30 (D) a mineral claim located under AS 38.05.195; 31 (E) a mineral lease issued under AS 38.05.205;
01 (F) an exempt oil and gas lease sale or gas only lease sale under 02 AS 38.05.180(d) of acreage subject to a best interest finding issued within the 03 previous 10 years or a reoffer oil and gas lease sale or gas only lease sale under 04 AS 38.05.180(w) of acreage subject to a best interest finding issued within the 05 previous 10 years, unless the commissioner determines that substantial new 06 information has become available that justifies a supplement to the most recent 07 best interest finding for the exempt oil and gas lease sale or gas only lease sale 08 acreage and for the reoffer oil and gas lease sale or gas only lease sale acreage; 09 however, for each oil and gas lease sale or gas only lease sale described in this 10 subparagraph, the director shall call for comments from the public; the 11 director's call for public comments must provide opportunity for public 12 comment for a period of not less than 30 days; if the director determines that a 13 supplement to the most recent best interest finding for the acreage is required 14 under this subparagraph, 15 (i) the director shall issue the supplement to the best 16 interest finding not later than 90 days before the sale; 17 (ii) not later than 45 days before the sale, the director 18 shall issue a notice describing the interests to be offered, the location 19 and time of the sale, and the terms and conditions of the sale; and 20 (iii) the supplement has the status of a final written best 21 interest finding for purposes of (i) and (l) of this section; 22 (G) a surface use lease under AS 38.05.255; 23 (H) a permit, right-of-way, or easement under AS 38.05.850; 24 (I) a timber management lease under AS 38.05.124; 25 (7) the director shall include in 26 (A) a preliminary written finding, if required, a summary of 27 agency and public comments, if any, obtained as a result of contacts with other 28 agencies concerning a proposed disposal or as a result of informal efforts 29 undertaken by the department to solicit public response to a proposed disposal, 30 and the department's preliminary responses to those comments; and 31 (B) the final written finding a summary of agency and public
01 comments received and the department's responses to those comments. 02 * Sec. 3. AS 38.05.075(a) is amended to read: 03 (a) Except as provided in AS 38.05.035, 38.05.070, 38.05.073, 38.05.081, 04 38.05.082, 38.05.083, 38.05.087, 38.05.102, 38.05.124, 38.05.565, 38.05.600, 05 38.05.810, and this section, when competitive interest has been demonstrated or the 06 commissioner determines that it is in the state's best interests, leasing shall be made at 07 public auction or by sealed bid, at the discretion of the director, to the highest qualified 08 bidder as determined by the commissioner. A bidder may be represented by an 09 attorney or agent at a public auction. In the public notice of a lease to be offered at 10 public auction or by sealed bid, the commissioner shall specify a minimum acceptable 11 bid and the lease compensation method. The lease compensation method shall be 12 designed to maximize the return on the lease to the state and shall be a form of 13 compensation set out in AS 38.05.073(m). An aggrieved bidder may appeal to the 14 commissioner within five days for a review of the determination. The leasing shall be 15 conducted by the commissioner, and the successful bidder shall deposit at the public 16 auction or with the sealed bid the first year's rental or other lease compensation as 17 specified by the commissioner, or that portion of it that the commissioner requires in 18 accordance with the bid. The commissioner shall require, under AS 38.05.860, 19 qualified bidders to deposit a sum equal to any survey or appraisal costs reasonably 20 incurred by another qualified bidder acting in accordance with the regulations of the 21 commissioner or incurred by the department under AS 38.04.045 and AS 38.05.840. If 22 a bidder making a deposit of survey or appraisal costs is determined by the 23 commissioner to be the highest qualified bidder under this subsection, the deposit shall 24 be paid to the unsuccessful bidder who incurred those costs or to the department if the 25 department incurred the costs. All costs for survey and appraisal shall be approved in 26 advance in writing by the commissioner. The commissioner shall immediately issue a 27 receipt containing a description of the land or interest leased, the price bid, and the 28 terms of the lease to the successful qualified bidder. If the receipt is not accepted in 29 writing by the bidder under this subsection, the commissioner may offer the land for 30 lease again under this subsection. A lease, on a form approved by the attorney general, 31 shall be signed by the successful bidder and by the commissioner.
01 * Sec. 4. AS 38.05 is amended by adding a new section to article 4 to read: 02 Sec. 38.05.124. Timber management leases. (a) If it is in the interest of the 03 state, the commissioner may issue a timber management lease to a person for the 04 harvest and management of timber on state forest land. So as to result in a sustained 05 yield of merchantable timber, a lessee shall manage timber on state forest land in 06 accordance with the standards of AS 41.17.060 and, at a minimum, provide for 07 (1) the harvest and sale of merchantable timber; 08 (2) afforestation and reforestation of state land; 09 (3) fire prevention and pest control; and 10 (4) construction and maintenance of roads and other facilities 11 necessary for the processing and removal of harvested timber. 12 (b) A timber management lessee shall manage timber located in the Haines 13 State Forest Resource Management Area described in AS 41.15.305(a) or in a state 14 forest established under AS 41.17.200 - 41.17.230 consistent with the applicable forest 15 management plan. 16 (c) A person may nominate state forest land for a timber management lease. 17 The commissioner shall consider whether state forest land nominated under this 18 subsection is suitable for timber management leasing under (a) of this section. If the 19 commissioner determines that the nominated land is suitable for timber management 20 leasing, the commissioner shall prepare a written request for proposals under (d) of 21 this section. 22 (d) If the commissioner identifies state forest land suitable for timber 23 management leasing under (a) or (c) of this section, the commissioner shall prepare a 24 written request for proposals that includes 25 (1) the specific location, description, and area of timber to be leased; 26 (2) the form of compensation that the commissioner intends to require 27 for the lease; and 28 (3) the selection criteria that the commissioner will use to determine 29 the eligibility of an applicant and the suitability of a proposal. 30 (e) After preparing a request for proposals under (d) of this section, the 31 commissioner shall issue the request to solicit proposals from persons who are
01 interested in leasing the land for forest management by issuing a public notice seeking 02 competitive interest in the manner prescribed under AS 38.05.945. 03 (f) After soliciting proposals under (e) of this section, if the commissioner 04 determines that only one proposal is acceptable, the commissioner may begin 05 negotiations with the applicant to develop the terms and conditions for the timber 06 management lease. If the commissioner determines that two or more applicants are 07 acceptable, the commissioner shall consider reasonable factors in awarding the lease, 08 including 09 (1) benefits to the public, including the surrounding community; 10 (2) forest improvements and investments; 11 (3) impact on growing the forest management and timber industry; 12 (4) qualifications of the applicant, including whether the applicant has 13 previous experience with forest management; 14 (5) revenue to the state; and 15 (6) any additional requirement established by the department in 16 regulation. 17 (g) After public notice, the commissioner may issue a timber management 18 lease for a period of up to 55 years. The commissioner may renew a lease only once 19 for a term not longer than the initial term of the lease. The commissioner may 20 terminate a lease at any time if the commissioner determines that the lessee has failed 21 to manage the timber in accordance with the terms of the lease or has otherwise failed 22 to comply with the lease after being provided a reasonable opportunity to comply. 23 (h) The commissioner shall charge compensation for a timber management 24 lease so as to ensure a fair return to the state, considering the benefits of the lessee's 25 activities to the state and the surrounding communities. 26 (i) Except as provided in this section or in a timber management lease, the 27 provisions of AS 41.17 and AS 38.05.110 - 38.05.120 do not apply to state forest land 28 subject to a timber management lease. A lease must include provisions regarding 29 (1) the lease term and compensation; 30 (2) a timber management plan; 31 (3) public access and multiple use;
01 (4) riparian management; 02 (5) easements and land use authorizations for improvements; 03 (6) compliance and department oversight; 04 (7) recordkeeping and auditing; 05 (8) notices of violation and termination; 06 (9) dispute resolution; 07 (10) insurance; and 08 (11) limitation of state liability. 09 (j) The commissioner shall adopt regulations under AS 44.62 (Administrative 10 Procedure Act) to implement this section. 11 (k) In this section, "forest land" has the meaning given in AS 41.17.950. 12 * Sec. 5. AS 41.15.300(b) is amended to read: 13 (b) The responsibility for the management, control, development, and 14 maintenance of the Haines State Forest Resource Management Area established under 15 AS 41.15.300 - 41.15.330 is assigned to the department. The department may 16 delegate the management of timber located in the Haines State Forest Resource 17 Management Area in a timber management lease under AS 38.05.124. 18 * Sec. 6. AS 41.15.315(a) is amended to read: 19 (a) The Haines State Forest Resource Management Area shall be managed 20 under the principles of multiple use and sustained yield and, except as applicable to a 21 lease under AS 38.05.124, under AS 41.17. 22 * Sec. 7. AS 41.15.315(d) is amended to read: 23 (d) The state land and water described in AS 41.15.305(a) are closed to sale 24 under state land disposal laws. The commissioner may lease the land described in 25 AS 41.15.305(a) under AS 38.05.070 - 38.05.105 for a purpose consistent with 26 AS 41.15.300(a) and a municipality may select land in the Haines State Forest 27 Resource Management Area under law. The commissioner may manage the land and 28 water described in AS 41.15.305(a) for purposes consistent with AS 38.95.400 - 29 38.95.499. The commissioner may issue a lease under AS 38.05.124 for the 30 management of timber located on land described in AS 41.15.305(a). 31 * Sec. 8. AS 41.15.315(e) is amended to read:
01 (e) A carbon offset project under AS 38.95.400 - 38.95.499 and a timber 02 management lease under AS 38.05.124 undertaken on land identified in 03 AS 41.15.305 must be consistent with the applicable management plan under 04 AS 41.15.320, and the management plan must identify the land appropriate for the 05 carbon offset project or timber management lease. The department may amend a 06 management plan under AS 41.15.320 to allow for a carbon offset project or timber 07 management lease. 08 * Sec. 9. AS 41.17.200(b) is amended to read: 09 (b) In managing a state forest, the commissioner shall, consistent with the 10 primary purpose of a state forest under (a) of this section, restrict the public use of the 11 land and its resources, including timber, fish and wildlife, and minerals, only when 12 necessary to carry out the purposes of this chapter. The commissioner may delegate 13 the management of timber located in a state forest through a timber management 14 lease under AS 38.05.124. 15 * Sec. 10. AS 41.17.220 is amended to read: 16 Sec. 41.17.220. Management of state forests. Land within a state forest or 17 within a unit of a state forest shall be managed under 18 (1) the sustained yield principle; 19 (2) this chapter, except as applicable to a lease under AS 38.05.124; 20 (3) a forest management plan prepared by the department; and 21 (4) if applicable, a carbon offset project undertaken by the department 22 under AS 38.95.400 - 38.95.499. 23 * Sec. 11. AS 41.17.230(a) is amended to read: 24 (a) The commissioner shall prepare a forest management plan consistent with 25 AS 38.04.005 and this chapter for each state forest and for each unit of a state forest to 26 assist in meeting the requirements of this chapter. An operational level forest 27 inventory shall be completed before a forest management plan for the state forest or 28 the unit of a state forest is adopted. The forest management plan shall be adopted, 29 implemented, and maintained within three years of the establishment of a state forest 30 by the legislature. To the extent they are found to be compatible with the primary 31 purpose of state forests under AS 41.17.200, the forest management plan must
01 consider and permit uses of forest land for other purposes, including a carbon offset 02 project under AS 38.95.400 - 38.95.499, timber management leasing under 03 AS 38.05.124, recreation, tourism, mining, mineral exploration, mineral leasing, 04 material extraction, consumptive and nonconsumptive uses of wildlife and fish, 05 grazing and other agricultural activities, and other traditional uses. If the commissioner 06 finds that a permitted use is incompatible with one or more other uses in a portion of a 07 state forest, the commissioner shall affirmatively state in the management plan that 08 finding of incompatibility for the specific area where the incompatibility is anticipated 09 to exist and the time period when the incompatibility is anticipated to exist together 10 with the reasons and benefits for each finding. 11 * Sec. 12. AS 41.17.230(g) is amended to read: 12 (g) A carbon offset project undertaken under AS 38.95.400 - 38.95.499 and a 13 timber management lease under AS 38.05.124 within a state forest must be 14 consistent with the applicable forest management plan, and the applicable forest 15 management plan must identify the land appropriate for the carbon offset project or 16 timber management lease. The department may amend a forest management plan to 17 allow for a carbon offset project or timber management lease. 18 * Sec. 13. AS 41.17.900(a) is amended to read: 19 (a) Except as provided in AS 38.05.124 or [UNLESS] otherwise specified, 20 this chapter applies to forest land under state, municipal, or private ownership. 21 * Sec. 14. This Act takes effect immediately under AS 01.10.070(c).