04/05/2013 01:00 PM House RESOURCES

         SB   2-INTERSTATE MINING COMPACT & COMMISSION                                                                      
                                                                                                                                
1:07:08 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SADDLER  announced that  the  first  order of  business                                                               
would  be SENATE  BILL NO.  2,  "An Act  enacting the  Interstate                                                               
Mining  Compact and  relating  to the  compact;  relating to  the                                                               
Interstate  Mining Commission;  and  providing  for an  effective                                                               
date."                                                                                                                          
                                                                                                                                
1:07:54 PM                                                                                                                    
                                                                                                                                
SENATOR  CATHY   GIESSEL,  Alaska  State   Legislature,  sponsor,                                                               
informed  the committee  SB  2  allows Alaska  to  become a  full                                                               
member in the Interstate Mining  Compact Commission (IMCC), which                                                               
is  a coalition  of mining  states that  joins together  to share                                                               
best practices,  discuss issues, and  work to better  protect the                                                               
environment,  public safety,  and employees,  as well  as develop                                                               
mining  resources.   She emphasized  Alaska's vast  resources are                                                               
not  just in  oil and  gas, but  in many  minerals such  as gold,                                                               
silver, and  zinc.  At this  time, Alaska is an  associate member                                                               
in  IMCC, however,  becoming  a  full member  gives  the state  a                                                               
broader voice nationally and allows  for collaboration with other                                                               
states on issues related to the best practices in mining.                                                                       
                                                                                                                                
1:09:20 PM                                                                                                                    
                                                                                                                                
ED  FOGELS,  Deputy  Commissioner, Office  of  the  Commissioner,                                                               
Department of  Natural Resources  (DNR), expressed  DNR's support                                                               
for SB 2.  Mining activity  in Alaska has been increasing - there                                                               
are  now seven  operating mines  that contribute  economically to                                                               
their regions  - and which  DNR successfully  regulates, manages,                                                               
and  oversees.   All of  the mines  have excellent  environmental                                                               
records.   However, DNR  seeks to  improve its  permitting system                                                               
and  its   collaboration  and   relationship  with   the  federal                                                               
government.    For seven  years,  Alaska  has been  an  associate                                                               
member  of  IMCC,  an  organization   that  brings  together  the                                                               
regulatory  and environmental  programs  from twenty-five  mining                                                               
states.     In  this  forum,   states  exchange   information  on                                                               
successful  programs   and  learn  from  each   other,  and  most                                                               
importantly,  bring  the full  weight  of  influence from  member                                                               
states to bear  on Congress and federal agencies.   Further, IMCC                                                               
has been instrumental in many  federal and state issues affecting                                                               
permitting  and  regulatory  processes;   for  example,  IMCC  is                                                               
meeting with the  U. S. Environmental Protection  Agency (EPA) to                                                               
address  the  possible  impacts of  its  initiative  to  regulate                                                               
bonding  for  hard  rock  mining throughout  the  nation.    This                                                               
initiative  has  the  potential to  reduce  each  state's  mining                                                               
regulatory  and  permitting processes,  and  IMCC  is working  to                                                               
maintain strong state  programs.  In addition,  IMCC has arranged                                                               
that states meet  regularly with the director of  the Mine Safety                                                               
and Health  Administration (MSHA),  U.S. Department of  Labor, to                                                               
ensure  efficient  and  reasonable  safety  regulations.  As  the                                                               
governor's  current designee  to IMCC,  Mr. Fogels  has seen  the                                                               
benefits  membership   has  brought   to  the  state,   and  full                                                               
membership will allow  the state to become a  voting member, help                                                               
set the policy  direction of the organization,  and contribute to                                                               
its  voice in  Washington, DC.   He  encouraged the  committee to                                                               
support the bill.                                                                                                               
                                                                                                                                
1:13:06 PM                                                                                                                    
                                                                                                                                
GREGORY  CONRAD, Executive  Director,  Interstate Mining  Compact                                                               
Commission (IMCC), stated  his support of SB 2  and expressed his                                                               
belief the  bill arose from  Alaska's experience as  an associate                                                               
member of IMCC since 2006.   In today's regulatory climate, it is                                                               
important for  state governments to  be heard in  Washington, DC,                                                               
and  for  their  concerns  to be  understood,  particularly  when                                                               
related to mining and environmental  issues.  His organization is                                                               
recognized  by  many  for  its   experience  and  expertise;  for                                                               
example,  IMCC testimony  on  behalf of  member  states has  been                                                               
requested  for  Congressional hearings  on  topics  such as  Good                                                               
Samaritan  protections  for  hard rock  abandoned  mine  cleanup,                                                               
stream  protection requirements,  hard  rock financial  assurance                                                               
requirements,  legislation,  and  state grant  programs.    Other                                                               
agencies  and  organizations  utilize  IMCC  also.    Mr.  Conrad                                                               
referred  to  IMCC's annual  report  which  was included  in  the                                                               
committee packet,  noting IMCC is  called upon to  provide member                                                               
states' recommendations  to Congress  and federal  regulators and                                                               
agencies.  He  stated that full and active  participation by full                                                               
members  carry IMCC  forward, and  Alaska's full  membership will                                                               
ensure its vote in guiding the  direction of the IMCC and thereby                                                               
lead the  organization; Alaska will  also continue to  garner its                                                               
present benefits that  include communications, meetings, programs                                                               
and initiatives.   In addition, Alaska's full  membership will be                                                               
recognized  by Congress  and federal  agencies,  and entitle  the                                                               
state to  heard and  supported by  the other  member states.   He                                                               
concluded that  IMCC's focus allows  it to delve deeper  into the                                                               
concerns of  mining and related environmental  protection issues.                                                               
Mr.  Conrad  encouraged the  committee  to  approve the  proposed                                                               
legislation.                                                                                                                    
                                                                                                                                
1:18:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON asked Mr. Conrad  to explain the IMCC dues                                                               
structure.                                                                                                                      
                                                                                                                                
MR. CONRAD  explained the member  states' dues are  calculated by                                                               
apportioning the dues based on  IMCC's anticipated budget through                                                               
two mechanisms:   equal shares  among the full member  states and                                                               
pro-rata shares based  upon the value of both coal  and hard rock                                                               
mineral  production.   The production  values, equal  shares, and                                                               
pro-rata shares  are used  to calculate the  total dues  for each                                                               
state,  which  are  reduced  by other  revenue  sources  such  as                                                               
registration  and  publication  fees.   In  further  response  to                                                               
Representative Johnson,  he said the percentages  are intended to                                                               
reflect the total percentages for all of the full member states.                                                                
                                                                                                                                
REPRESENTATIVE TARR  asked if Alaska's  first year of  dues would                                                               
be approximately $40,000.                                                                                                       
                                                                                                                                
1:22:33 PM                                                                                                                    
                                                                                                                                
MR.  FOGELS  advised  there  is  a  cap  on  the  dues,  even  if                                                               
production goes up.                                                                                                             
                                                                                                                                
MR. CONRAD  added he  has calculated the  total value  of mineral                                                               
production  for   Alaska,  based  upon  figures   from  the  U.S.                                                               
Geological   Survey    (USGS)   and   the    Energy   Information                                                               
Administration  (EIA), U.S.  Department of  Energy, for  non-coal                                                               
and coal,  is about $3.5  billion.  Therefore, he  estimated dues                                                               
for Alaska are approximately $35,000,  depending on how many full                                                               
member states are participating.                                                                                                
                                                                                                                                
REPRESENTATIVE  TUCK asked  whether gravel  pits are  included in                                                               
IMCC's purview.                                                                                                                 
                                                                                                                                
MR. CONRAD believed USGS figures do include aggregate.                                                                          
                                                                                                                                
CO-CHAIR SADDLER inquired as to  the location of the other member                                                               
states.                                                                                                                         
                                                                                                                                
MR.  CONRAD  answered  that  the member  states  are  located  as                                                               
follows:  the Western  states are  Alaska, Colorado,  New Mexico,                                                               
Utah,  Wyoming,  Nevada,  and  North  Dakota;  the  Mid-continent                                                               
states   are  Texas,   Oklahoma,  Arkansas,   Illinois,  Indiana,                                                               
Louisiana, and Missouri;  and the balance are in the  East.  Some                                                               
states  only have  non-coal production  such as  New York,  North                                                               
Carolina, South  Carolina, and Nevada.   In response  to Co-Chair                                                               
Saddler, Mr.  Conrad assured the  committee that  IMCC represents                                                               
the  full panoply  of  issues,  although in  the  1970s IMCC  was                                                               
primarily focused  on issues pertaining  to coal.  In  fact, IMCC                                                               
recently hosted hard  rock minerals symposiums in  Salt Lake City                                                               
and in the East.                                                                                                                
                                                                                                                                
1:27:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TARR asked  whether IMCC  participated in  events                                                               
sponsored by  the Council  of State  Governments or  the National                                                               
Conference of State Legislatures.                                                                                               
                                                                                                                                
MR. CONRAD  said yes,  IMCC is  involved with  a number  of other                                                               
state  government organizations,  including a  close relationship                                                               
with  the  Council  of  State  Governments.    Other  connections                                                               
include   the  Western   Governors   Association,  the   National                                                               
Governors  Association,  the  National Association  of  Abandoned                                                               
Mine  Land  Programs  -  EPA,  the  Association  of  Clean  Water                                                               
Administrators, and the Environmental Council of the States.                                                                    
                                                                                                                                
1:29:41 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SADDLER opened public testimony.                                                                                       
                                                                                                                                
1:29:52 PM                                                                                                                    
                                                                                                                                
MIKE  SATRE, Executive  Director,  Council  of Alaska  Producers,                                                               
said  he is  a  resident  of Juneau  and  the  Council of  Alaska                                                               
Producers  is a  nonprofit trade  association representing  large                                                               
producing metal  mines and major metal  developmental projects in                                                               
the  state.    His  organization  is  in  support  of  SB  2  and                                                               
participation  by the  state  in  IMCC as  a  full  member.   His                                                               
organization supports the bill because  Alaska is a global leader                                                               
in  permitting   and  regulation  of  the   mining  industry  and                                                               
participation in IMCC will keep  state officials informed.  Also,                                                               
he advised that local, state,  and federal mining regulations can                                                               
be troublesome, and  IMCC deals with the  federal government from                                                               
a position of strength.                                                                                                         
                                                                                                                                
1:32:15 PM                                                                                                                    
                                                                                                                                
DEANTHA CROCKETT,  Executive Director, Alaska  Miners Association                                                               
(AMA),  stated  AMA  is a  statewide  industry  association  that                                                               
represents  the six  large metal  mines  in the  state, the  coal                                                               
mine,   exploration   projects,   placer   miners,   contractors,                                                               
engineering  firms,  and  others.     She  agreed  with  previous                                                               
testimony in support  of SB 2, adding that  federal regulation is                                                               
becoming increasing difficult and  IMCC provides a powerful voice                                                               
in Washington, DC.  Ms.  Crockett said her research revealed that                                                               
other  Western   states  have   benefitted  greatly   from  their                                                               
membership in IMCC.   She reminded the committee  that the mining                                                               
industry is the second largest industry in the state.                                                                           
                                                                                                                                
1:34:23 PM                                                                                                                    
                                                                                                                                
MARLEANNA   HALL,  Project   Coordinator,  Resource   Development                                                               
Council for Alaska, Inc. (RDC),  stated that RDC is a membership-                                                               
funded, statewide business  association representing the tourism,                                                               
forestry,  oil and  gas,  mining, and  fishing  industries.   Her                                                               
organization supports  the passage  of SB 2  and she  pointed out                                                               
the state  should encourage investment and  worldwide interest in                                                               
Alaska's mineral  potential.  Joining  IMCC will  show leadership                                                               
in  advocating for  a healthy  and  stable permitting  regulatory                                                               
system.  The  importance of mining is  recognized nationwide, and                                                               
RDC believes  IMCC will bring  a collective voice  to Washington,                                                               
DC,  to advocate  for states'  rights.   Full membership  in IMCC                                                               
will allow Alaska to benefit in  many ways, such as partnering on                                                               
federal and  state issues  and promoting  the mining  industry in                                                               
Alaska and  nationwide.  She urged  for the timely passage  of SB
.                                                                                                                              
                                                                                                                                
1:35:42 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SADDLER,  after  ascertaining  no one  else  wished  to                                                               
testify, closed public testimony.                                                                                               
                                                                                                                                
REPRESENTATIVE JOHNSON offered  his strong support for  SB 2, and                                                               
provided  an   example  to   illustrate  that   individual  state                                                               
resolutions and  letters are  not as effective  as those  from an                                                               
organized  group  of  states  with like  concerns,  such  as  the                                                               
Council of  State Governments-WEST.  He  encouraged the committee                                                               
to  support  the   bill  because  partnering  in   this  type  of                                                               
organization is invaluable.                                                                                                     
                                                                                                                                
REPRESENTATIVE  P. WILSON  relayed her  personal experience  as a                                                               
member of a group from several states that made a difference.                                                                   
                                                                                                                                
CO-CHAIR FEIGE has heard it  said that "the federal government is                                                               
not  your friend,"  and expressed  his support  for the  proposed                                                               
legislation in order to accumulate friends for Alaska.                                                                          
                                                                                                                                
REPRESENTATIVE SEATON recalled reviewing  the compact at the time                                                               
Alaska  became an  associate member  of IMCC.   He  observed that                                                               
there is nothing in the  compact that would override Alaska state                                                               
law.  He  restated the benefits of joining IMCC  as a full member                                                               
and offered his support for SB 2.                                                                                               
                                                                                                                                
1:41:22 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  FEIGE  moved to  report  SB  2  out of  committee  with                                                               
individual  recommendations and  the  accompanying fiscal  notes.                                                               
There being  no objection,  SB 2  was reported  out of  the House                                                               
Resources Standing Committee.