Legislature(2019 - 2020)BARNES 124
03/04/2019 01:00 PM House RESOURCES
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| Audio | Topic |
|---|---|
| Start | |
| Presentation(s): University of Alaska Fairbanks | |
| Confirmation Hearing(s):|| Commissioner, Department of Natural Resources | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| *+ | SJR 7 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
HOUSE RESOURCES STANDING COMMITTEE
March 4, 2019
1:01 p.m.
MEMBERS PRESENT
Representative John Lincoln, Co-Chair
Representative Geran Tarr, Co-Chair
Representative Grier Hopkins, Vice Chair
Representative Sara Hannan
Representative Ivy Spohnholz
Representative Chris Tuck
Representative Dave Talerico
Representative George Rauscher
Representative Sara Rasmussen
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE JOINT RESOLUTION NO. 7
Requesting that the United States Department of the Interior
Bureau of Land Management implement an oil and gas leasing
program in the coastal plain of the Arctic National Wildlife
Refuge.
- <BILL HEARING POSTPONED TO 3/6/19>
PRESENTATION(S): UNIVERSITY OF ALASKA FAIRBANKS
- HEARD
CONFIRMATION HEARING(S):
Department of Natural Resources, Commissioner
CORRI A. FEIGE - Chickaloon
CONFIRMATION(S) ADVANCED
PREVIOUS COMMITTEE ACTION
BILL: SJR 7
SHORT TITLE: ENDORSING ANWR LEASING; RELATED ISSUES
SPONSOR(s): SENATOR(s) BIRCH
02/20/19 (S) READ THE FIRST TIME - REFERRALS
02/20/19 (S) RES
02/25/19 (S) RES AT 3:30 PM BUTROVICH 205
02/25/19 (S) Moved SJR 7 Out of Committee
02/25/19 (S) MINUTE(RES)
02/27/19 (S) RES RPT 5DP 1NR 1AM
02/27/19 (S) DP: BIRCH, GIESSEL, COGHILL, BISHOP,
REINBOLD
02/27/19 (S) NR: KIEHL
02/27/19 (S) AM: KAWASAKI
03/04/19 (H) RES AT 1:00 PM BARNES 124
WITNESS REGISTER
S. BRADLEY MORAN, PhD, Dean
College of Fisheries and Ocean Sciences
University of Alaska Fairbanks
Fairbanks, Alaska
POSITION STATEMENT: Provided a PowerPoint presentation
entitled, "UAF College of Fisheries and Ocean Sciences:
Building Alaska's Blue Economy," dated 3/4/19, and answered
questions.
CORRI FEIGE, Commissioner Designee
Department of Natural Resources
Anchorage, Alaska
POSITION STATEMENT: Testified as Commissioner Designee,
Department of Natural Resources.
ACTION NARRATIVE
1:01:37 PM
CO-CHAIR JOHN LINCOLN called the House Resources Standing
Committee meeting to order at 1:01 p.m. Representatives
Rauscher, Talerico, Tuck, Hannan, Hopkins, Rasmussen, Tarr, and
Lincoln were present at the call to order. Representative
Spohnholz arrived as the meeting was in progress.
^PRESENTATION(S): UNIVERSITY OF ALASKA FAIRBANKS
PRESENTATION(S): UNIVERSITY OF ALASKA FAIRBANKS
1:01:55 PM
CO-CHAIR LINCOLN announced that the first order of business
would be a presentation by the University of Alaska Fairbanks
College of Fisheries and Ocean Sciences.
1:02:39 PM
S. BRADLEY MORAN, PhD, Dean, College of Fisheries and Ocean
Sciences (CFOS), University of Alaska Fairbanks (UAF), provided
a PowerPoint presentation entitled, "UAF College of Fisheries
and Ocean Sciences: Building Alaska's Blue Economy." Dr. Moran
informed the committee "Building Alaska's Blue Economy"
describes the value CFOS brings to the state by its engagement
in fisheries, marine biology, and ocean science, and its
operation of facilities such as the research vessel (R/V)
Sikuliaq. He said CFOS is the largest research and academic
unit in Alaska with a budget in fiscal year 2018 (FY 18) of $46
million, leveraged from a state investment of $5.9 million,
which is a return on investment (ROI) of 8:1. The college has
12 locations throughout the state and has over 300 faculty,
staff, and students.
REPRESENTATIVE HANNAN asked for clarification of the CFOS
budget.
DR. MORAN explained in addition to $5.9 million in state
unrestricted general funds (UGF), $22.8 million in research is
almost entirely from federal grants, and $11.3 million per year
for the R/V Sikuliaq comes from a cooperative agreement with the
National Science Foundation (NFS) for operation of the vessel
and certain shoreside staff. He said detailed [budget]
information would be forthcoming in an annual report.
REPRESENTATIVE HANNAN surmised tuition represents [5.8 percent]
of the budget.
DR. MORAN said the indirect cost revenue of about $2.6 million
represents 5.8 percent of the budget in FY 18. Although NSF
pays over $11 million for R/V Sikuliaq, the indirect cost
revenue to CFOS for the vessel is around $1 million and $1.5
million is paid for research.
REPRESENTATIVE TALERICO asked whether the bulk of faculty are
located at the Fairbanks campus.
DR. MORAN said UAF is the flagship research university for the
University of Alaska (UA), although CFOS has faculty in 12
locations.
DR. MORAN listed CFOS major facilities economic drivers
beginning with the Alaska Sea Grant Program, which is housed
within CFOS in Juneau. The Coastal Marine Institute, Institute
of Marine Science, and others leverage funding and are major
reasons why CFOS is among the "top five, top three - fisheries
and ocean [colleges] - in the country" (slide 3). Dr. Moran
continued to industry partnerships, commercialization, and
innovations that are used by the university system to grow and
diversify Alaska's economy. For example, the Pollock
Conservation Cooperative is the largest philanthropic donor to
UA, providing $16 million from 2000 to 2018, and consists of
five industries: Trident Seafoods, Aleutian Spray Fisheries,
Inc., American Seafoods, Glacier Fish Company, and American
Seafoods. Also, the Ted Stevens Chair of Marine Policy, UA, is
endowed through the cooperative along with wide-ranging student
research. He further described federal agency partnerships:
the Alaska Sea Grant program is a partnership between the
National Oceanic and Atmospheric Administration (NOAA) and the
state - $1.5 million from NOAA and a portion of matching funds
from the state; Bureau of Ocean Energy Management (BOEM), U.S.
Department of the Interior - $1 million per year to the Coastal
Marine Institute; other federal agency partnerships that are
essential to the CFOS budget (slide 5).
1:12:13 PM
REPRESENTATIVE HANNAN asked for the location of the Coastal
Marine Institute.
DR. MORAN said the Coastal Marine Institute is not a brick and
mortar building but is a virtual institute operated by CFOS with
funding from BOEM.
REPRESENTATIVE HANNAN asked for the location of Kasitsna Bay.
DR. MORAN said Kasitsna Bay Laboratory is owned by NOAA and is
located in Kachemak Bay; the lab is extensively used for student
training and coursework. Also located at Kasitsna Bay Lab is
the NSF Established Program to Stimulate Competitive Research
(EPSCoR), Fire and Ice, which awarded $20 million over five
years for research by CFOS faculty and students. Slide 6 listed
four examples of innovation and commercialization: Blue
Evolution leases space from UAF at Kodiak to harvest and process
kelp; Blue Pipeline Incubator is an amalgamation of ocean
businesses located at the UAF Seward Marine Center; $500,000
MARINER award by the Advanced Research Projects Agency-Energy
(ARPA-E), U.S. Department of Energy, to develop sugar kelp for
market; UAF faculty in Kodiak makes pet treats from fish skins.
1:16:13 PM
REPRESENTATIVE SPOHNHOLZ asked for more information on sugar
kelp.
DR. MORAN said sugar kelp is the type of kelp harvested in the
aforementioned award. In further response to Representative
Spohnholz, he said the kelp is not used to make sugar but to
generate other products.
There followed a short discussion on mariculture and kelp.
DR. MORAN advised mariculture is a major opportunity for Alaska
due to Alaska's geographic location, less regulation, and
proximity for coastal community business development. Current
UAF mariculture facilities are located in Kodiak, Kasitsna Bay,
Seward, and Lena Point. Current mariculture research is
underway at UAS, and, elsewhere, numerous faculty and students
are working on kelp, crabs, and ocean acidification (slide 7).
DR. MORAN restated since 3/14, CFOS has operated, through a
cooperative agreement, R/V Sikuliaq, a $200 million ice-capable
vessel; in 2018, CFOS successfully renewed a $33 million
cooperative agreement to continue operating the vessel.
However, he noted in 2023, the cooperative agreement to operate
the vessel will be open for national competition and many other
institutions will bid. In order to retain the operating
agreement and continue to receive the opportunities and
financial benefits provided by operating R/V Sikuliaq, it is
essential that Alaska maintain its shoreside facilities and its
excellent record of operations. A new program called the Alaska
Sikuliaq Program offers a proposal process for use of the vessel
at a rate of $50,000 per day. R/V Sikuliaq is the only ice-
capable vessel in the academic fleet (slide 8).
1:22:21 PM
REPRESENTATIVE HOPKINS asked about partnerships between R/V
Sikuliaq and industry or other governments.
DR. MORAN explained anyone can charter the vessel; for example,
Ocean Networks Canada chartered the vessel for two or three
weeks, as did the Office of Naval Research, Department of the
Navy, U.S. Department of Defense. There have been inquiries
from industry as the vessel is capable of seismic work and other
studies, from sediments to the surface of the ocean.
REPRESENTATIVE HOPKINS surmised the vessel could be used for
seismic exploration for offshore oil and gas.
DR. MORAN said yes.
DR. MORAN, in response to Representative Hannan, said the
cooperative agreement began in March 2014; the vessel was built
in 2012, launched in 2013, CFOS began operations in 2014, and
the vessel became fully operational and approved for seagoing
operations in March 2016.
REPRESENTATIVE HANNAN asked whether [renewal of the cooperative
agreement with CFOS] depends upon charter agreements or NFS
projects.
DR. MORAN advised the vessel is part of the University-National
Oceanographic Laboratory System (UNOLS), which is a consortium
of universities that sets the schedule for R/V Sikuliaq, thus
proposals funded by NSF are scheduled for research by the vessel
through UNOLS. Private industry would apply to schedule the
vessel up to one year in advance, and he gave an example.
REPRESENTATIVE HANNAN questioned whether UAF must ensure ongoing
research grants to retain its operating agreement.
1:27:26 PM
DR. MORAN restated any entity can write a proposal for use of
the vessel; in fact, UAF relies on proposals from other
entities, such as the University of Washington, to fill ship at-
sea days. However, when the operating agreement is open for
renewal, UAF will write a proposal including a budget, CFOS's
record of operation, and UNOLS post cruise assessment forms. It
is important that NSF receive value in return for its federal
taxpayer dollars. He assured the committee CFOS meets
expectations in vessel operations; in fact, CFOS and NSF share
the vessel's schedule with local organizations such as the
whaling community. He recalled the original proposal for the
R/V Sikuliaq came from a UAF faculty member in 1970 and led to
an asset on par with that of the University of Washington or
Woods Hole Oceanographic Institution. He stressed R/V Sikuliaq
is a remarkable asset for a university the size of UAF and
restated the importance of renewing the cooperative agreement in
2023; in that regard, CFOS is writing a $35 million proposal to
NSF for a new pier and warehouse facility in Seward.
REPRESENTATIVE SPOHNHOLZ asked whether NSF restricts the
vessel's access.
1:32:45 PM
DR. MORAN said no, R/V Sikuliaq is a global-class vessel;
however, it is ice-capable and thus is limited to traversing two
and one-half feet of ice at two knots: it is not an icebreaker.
Continuing to other examples of value brought by UAF, Dr. Moran
described an NSF project, Northern Gulf of Alaska Long-Term
Ecosystem Research (NGA LTER). The University of Alaska has
four long-term research (LTER) projects, and CFOS operates two,
one of which follows the "Seward Line," which builds on 45 years
of research and will last 10-20 years. Funding by NSF is $2.5
million per year and the project seeks to further understand
impacts to commercial fisheries in the Gulf of Alaska (slide 9).
An additional funding stream is the European Union (EU) Arctic
Research Icebreaker Consortium, which includes the R/V Sikuliaq
and other vessels from Canada, Norway, Sweden, Germany, and
U.K., and that further illustrates UAF's "international reach"
in building Alaska's blue economy (slide 9). Slide 11
highlighted fisheries in Alaska's economy: Commercial
Fisheries: two-thirds of U.S. fish landings are in Alaska;
fisheries generate over $4 billion wholesale value; fisheries
are Alaska's largest private employer.
REPRESENTATIVE RASMUSSEN inquired as to the percentage of the
60,000 fisheries workers who are Alaskans.
DR. MORAN said he would provide that information. Sport
fisheries: generate about $1 billion per year supporting 16,000
jobs; are an important customary and traditional use of fishery
resources (slide 11). As an aside, Dr. Moran informed the
committee one-half of 520-530 graduate students in fisheries
studies are working in Alaska; on the oceanographic side, of
over 100 graduate students, one-half are working in Alaska.
Furthermore, 47 percent of the science, technology, engineering,
and math (STEM) CFOS faculty are women, which he described as
more than double the national STEM faculty gender equity, and
approximately 70 percent of CFOS students are women. Dr. Moran
directed attention to a new online program, UAF Blue MBA, that
is an accredited MBA from the school of management, and which is
designed for working professionals. The degree is focused on
fisheries, ocean science, and ocean technology, which are the
future around the "ocean economy." He said this is a unique
program that is entirely web-based and will create an
opportunity to increase revenue through online education (slide
12).
1:40:22 PM
REPRESENTATIVE HOPKINS asked whether there is enough interest in
fisheries sciences to provide an adequate workforce for the
industry.
DR. MORAN advised the fisheries program attracts top graduate
students who are only limited by the cost of tuition;
traditionally, tuition and a stipend would be paid by research
grants from industry. In fact, fisheries faculty members and
workers are in demand to replace the expertise lost from recent
retirements that have created a void, for example, on the North
Pacific Fishery Management Council. He then provided examples
of CFOS industry partners: Hilcorp Energy company funded
research in the Beaufort Sea for information to show its
permitting and processes comply with federal standards and
regulation; the summer program will be extended into a winter
study (slide 13). Another example is research related to
longline fisheries and whale depredation (slide 14). A further
example is research related to declines in the size of Pacific
halibut (slide 15).
1:44:03 PM
CO-CHAIR LINCOLN asked what attributed to smaller fish.
DR. MORAN said the cause is not entirely known; one idea is the
cause was depredation by arrowtooth flounder, however, more
research is needed. Another example of partnering with industry
is research into the crab fishery to ensure a sustainable
fishery and crab size. Computer models of catch and bycatch
resulted in a proposal approved by the Board of Fisheries to
reduce the size limit (slide 16). Slide 17 illustrated research
into the interaction of wild salmon with hatchery salmon to
ensure wild salmon are not genetically influenced by hatchery
salmon. Slide 18 illustrated fisheries management research on
the decline of the size of chinook salmon that has been linked
to depredation by salmon shark, and interactions of hatchery and
wild fish. In conclusion, Dr. Moran presented examples of shark
research for biomedical advances taking place at UA Anchorage
(UAA), and resources for policymakers provided through several
programs at UA Southeast (UAS) (slide 19).
1:48:24 PM
The committee took a brief at-ease.
^CONFIRMATION HEARING(S):
^Commissioner, Department of Natural Resources
CONFIRMATION HEARING(S):
Commissioner, Department of Natural Resources
1:48:46 PM
CO-CHAIR LINCOLN announced that the final order of business
would be a confirmation hearing for the commissioner designee of
the Department of Natural Resources.
1:50:21 PM
CORRI FEIGE, Commissioner Designee, Department of Natural
Resources (DNR), reviewed her qualifications and 30 years'
experience in the natural resources industry. She is a
geophysicist and engineer, and her work around the world has
provided a clear understanding of the importance of a robust,
scientifically-based permitting process. She noted her
experience working in the mining, oil and gas, and geothermal
industries, and with new energy technologies. Commissioner
Feige described her responsibilities in private enterprise; her
experience in the public sector is one and one-half years as
director of the Division of Oil and Gas (DOG), DNR. She
provided a short personal history and said her family
experiences established her belief in careful and diligent land
and resource management, an appreciation that the conservation
and management of land and water includes multiple uses -
including heavy industry and business - along with hunting,
fishing, and outdoor recreation. She said inclusive land
stewardship and management drives strong economies, builds jobs,
and a good quality of life. As commissioner, her priorities for
Alaska include the following: successfully manage land and
resources; multiple use of land; support a thriving economy;
support local communities; secure the remaining federal land due
to Alaska; direct DNR to provide opportunities for the present
and the future. Commissioner Feige said she would be honored to
lead the DNR team, which is composed of over 900 professionals
who have contributed nearly $1.5 billion in state revenue in
fiscal year 2018 (FY 18).
1:55:46 PM
REPRESENTATIVE RASMUSSEN asked whether there is a timeline for
securing the four million to five million acres due to Alaska
from the federal government.
COMMISSIONER FEIGE advised, since transition, DNR contacted the
Bureau of Land Management (BLM), U.S. Department of the Interior
(DOI), about the high priority land classification areas, such
as areas of economic development and settlement, or areas that
are prospective for mineral extraction or agriculture.
Furthermore, DNR reviewed BLM's administrative process related
to the release of the title of selected land, and to public land
orders. She opined DNR, the state, and Alaska's congressional
delegation need to keep a constant pressure on federal agencies
to reach DNR's internal goal of attaining approximately one
million acres from [Public Land Order No. 5150], which is the
corridor along the Trans-Alaska Pipeline System (TAPS), within
the next three years.
REPRESENTATIVE RAUSCHER asked about the reevaluation of the
Division of Agriculture (DoAg).
COMMISSIONER FEIGE responded the governor's budget revealed the
administration's priorities for DoAg: phytosanitary inspection
program to certify timber and agricultural exports; invasive
species eradication program to protect crops and soils; the
[Foundation Seed Program]. Other programs that have been
established and funded by the state, such as the Alaska Grown
program, can be turned over to the private sector and supported
by industry.
2:00:25 PM
REPRESENTATIVE RAUSCHER questioned whether the private sector
has responded [to the governor's priorities].
COMMISSIONER FEIGE has heard some positive responses and some
concerns.
REPRESENTATIVE RAUSCHER inquired as to Commissioner Feige's
vision to grow the mining industry.
COMMISSIONER FEIGE recalled mining and mining exploration in
Alaska has been active for the last two years; Alaska is ranked
one of the top ten provinces in the world for mineral
exploration and discovery success. In fact, mining claims
increased by 216 percent between 2016-2017; she opined DNR's
role is: to ensure a transparent permitting process; to correct
errors in the language on forms that created problems for placer
miners and others; to communicate DNR's expectations on
permitting; to facilitate mining applications; to continue
ground-based field work by the Division of Geological and
Geophysical Surveys (DGGS) that provides data to industry in
participation with programs conducted by the U.S. Geological
Survey (USGS), DOI. In further response to Representative
Rauscher, she said she seeks to serve as commissioner because
the state has enormous resource extraction potential but fails
to connect with industry and present opportunities to develop
resources.
2:06:17 PM
REPRESENTATIVE HANNAN observed DNR will eliminate its regional
recording offices and expressed her concern about how DNR will
serve the recording needs of individuals in rural areas.
COMMISSIONER FEIGE said DNR seeks to fulfil recording needs by
ensuring that residents in local communities can access and use
electronic recording by making training documents available to
users. For miners in the Interior who record affidavits of
labor, DNR may provide a seasonal kiosk or desk; she
acknowledged electronic recording is not a solution for all
areas of the state.
REPRESENTATIVE HANNAN related the mariculture industry depends
upon DNR permitting sites for hatcheries and mariculture
projects. She heard DNR may revoke a permit to a hatchery in
Tutka Bay established 40 years ago - that is a member of the
Cook Inlet Aquaculture Association - and that has permits from
Alaska Department of Fish & Game (ADFG). She suggested DNR
should only review the "land-permitting side of aquaculture
management ...."
2:10:05 PM
COMMISSIONER FEIGE clarified the DNR permit relative to Cook
Inlet Aquaculture Association is issued by the Division of Parks
and Outdoor Recreation (DPOR), DNR, because the hatchery resides
within Kachemak Bay State Park. The hatchery is located in a
cove and is operated on a lease with ADFG. The hatchery made an
application to place net pens in the bay, an activity that does
not align with other park activities in the Kachemak Bay scenic
area, according to DPOR. Further, the [Kachemak Bay Critical
Habitat Area Management Plan] is currently under review. She
assured the committee DNR has enormous interest in mariculture
and has received over 500 mariculture permit applications;
however, DNR discovered the statutory language for the
mariculture program does not include provisions for renewing
leases. She said DNR seeks changes that will allow mariculture
businesses to renew their applications and avoid expensive and
lengthy reapplications.
REPRESENTATIVE HOPKINS inquired as to DNR's responsibility to
consult with residents and local governments during the
permitting processes for large-scale mining operations.
COMMISSIONER FEIGE advised large mine permit applications are
presented to the Office of Project Management and Permitting
(OPMP), DNR, which is currently reviewing two large mine
projects and several oil and gas projects. The process for
consultation [with affected communities] is attached to the
application for the permit sought from the state, not from the
federal government. She described the process leading up to
DNR's release of a draft that subsequently is open to community
consultation; at that time, the permitting teams have public
meetings in the communities near the location of the mine or
other project. She cautioned the state process is often
confused with the National Environmental Policy Act of 1969
(NEPA) government to government consultation, which is a
separate process wholly between federal agencies and local
governments; however, the state must treat all stakeholders
equally. Therefore, when DNR receives a request for
consultation OPMP will arrange for translators when necessary,
and she gave an example. She restated the importance that DNR
receive comments and ensure that stakeholders and any interested
parties have access to pertinent information. However, DNR's
response to a request for consultation or information may be
delayed due to its thorough consideration of requests.
2:18:20 PM
REPRESENTATIVE HOPKINS informed the committee an opinion piece
[published 2/10/19] written by Peter Evon, Executive Director,
Orutsararmiut Native Council (ONC), reported that ONC's concerns
and requests for dialogue - regarding permits specifically
related to the Donlin project - were repeatedly ignored by the
state [document not provided]. He asked whether said requests
were known by Commissioner Feige and for her view on "that
disconnect between the local government and the department ...
as that important local input."
COMMISSIONER FEIGE advised some of the abovementioned permits
related to Donlin will be issued by other agencies such as the
Department of Environmental Conservation (DEC). She
acknowledged many easement and land use permit requests were
issued in draft form for public engagement and consultation "all
at once, and I think that that led to some, some confusion."
Currently, DNR and DEC have 19 state regulatory actions out for
public comment, some of which have been ongoing since 2017, and
she gave examples. She restated all are invited to community
meetings in each region and said she needed further information
to respond to questions about a specific request.
REPRESENTATIVE HOPKINS offered to provide further information in
this regard. He clarified his concerns are not directed to
pipeline right of way easements but to tailings ponds and [long-
term mine] waste disposal, and how a local government with
preferred methods for tailings waste, for example, could
influence the permitting process. He asked:
But if a local government is saying, "We don't want
this in our backyard for the next thousand-plus years"
... how do you take into account those type[s] of
concerns, when it comes to the permitting of these
projects. ... You deal with those waste-water permits,
so how do you view that in the permitting process?
2:22:16 PM
COMMISSIONER FEIGE opined local comments are critical. She
recalled the [Coastal Zone Management Act of 1972 created the
Alaska Coastal Management Program that was repealed in 2011]
formerly provided for the local review of projects; currently,
DNR seeks local consultation to incorporate valuable local
knowledge from subsistence hunters and residents who use the
land. She urged all residents of an affected region to take
part in local meetings and inform DNR. Commissioner Feige
extensively described the Alaska Dam Safety Program within the
Division of Mining, Land and Water, DNR, and the differing
characteristics of tailings dam construction.
REPRESENTATIVE HOPKINS restated his question as to how the
commissioner would incorporate overwhelming resistance to a
large-scale tailings pond from a local government or community,
into the permitting process.
COMMISSIONER FEIGE said alternative methods or designs are
considered material comments and would be presented for
comparison and evaluation by engineers. She remarked:
And whichever is the most appropriate and is the
safest and can provide ... the best overall fit to the
safety of environment and local communities for that
operation, then ... if someone brings something
forward that's better, that would be evaluated and
incorporated in ....
COMMISSIONER FEIGE further advised changes can also be made
through the "alternatives analysis" of the NEPA process.
2:26:56 PM
REPRESENTATIVE HOPKINS surmised overwhelming support or
opposition from local government is incorporated into the review
of facilities such as tailings ponds.
2:27:14 PM
COMMISSIONER FEIGE said yes. In further response to
Representative Hopkins she said the cost and profitability of a
mine project are not a factor in the evaluation of the safest
design for a mine. She said:
We don't sell permits, that's not what we're in the
business to do. What we do is ensure that the
technology and the engineering that's being put, put
forward on whatever project is, is the best and most
secure available. ... It is then up to the company to
iterate back and say, "All right with that change,
does my 'economics' still work?"
REPRESENTATIVE SPOHNHOLZ asked Commissioner Feige to comment on
the 17 permits for Donlin mine that have been issued subsequent
to the change in administration.
COMMISSIONER FEIGE clarified there are 19 state regulatory
actions that have not been issued but are presently out in draft
form for public comment. She explained a major decision at the
federal level is followed by state action; for example, the
Donlin record of decision (ROD) precipitated the release of
[draft] state permits that were already underway, and that then
were opened for public comment and consultation.
REPRESENTATIVE SPOHNHOLZ expressed her understanding that "a
floodgate of new permits at the state level would come out ...
would follow the federal approval." She stated her concern
about the number of draft actions is whether residents of an
affected community in a remote region would have time to
adequately research and consider issues and to formulate a
response.
2:31:51 PM
COMMISSIONER FEIGE opined the public meetings are "clustered"
because it is easier to address several issues, such as right of
way easements, all at once; combining the meetings saves time
for residents and DNR wants residents to understand the projects
"holistically," which may include access issues or pipelines.
She acknowledged the projects are large and complex.
REPRESENTATIVE SPOHNHOLZ acknowledged integrating various
permits or actions to present to the community at once makes
sense. However, she questioned whether community members - who
are not engineers or scientists - under these circumstances, can
be adequately informed, and asked for assurance DNR will provide
a meaningful opportunity for residents to process the presented
information and respond.
COMMISSIONER FEIGE pointed out public consultation on some of
the draft permits began in 2017, thus on each large project
there are multiple opportunities to review information and
return to question knowledgeable parties; furthermore, there are
project websites with comments and responses to inquiries posted
therein. She assured the committee DNR strives to inform
community members of the information they need.
2:36:54 PM
CO-CHAIR TARR opined adequate public process is more important
than ever; residents living in proximity to the Donlin mine have
reported agencies have not responded to their requests for
consultation. Although meetings in the community were scheduled
to comply with public notice, she cautioned that meetings have
not resulted in full engagement with local residents and Tribal
leadership and failed to share information in a meaningful way.
She pointed out state actions have become more important because
the federal administration has shortened its environmental
impact statement (EIS) process thus state oversight by DNR will
need to be more diligent. Returning attention to the Division
of Agriculture, she reminded the committee of the level of state
investment that was required to ensure the success of the oil
and gas industry and suggested other young industries also need
state support to become long-term, sustainable industries. Co-
Chair Tarr then referred to Commissioner Feige's resume provided
in the committee packet and noted Commissioner Feige is listed
as president and principal consultant for The Castle Mountain
Group, Inc.; she inquired as to a possible conflict of interest.
Also, she questioned whether continuing budget cuts to DNR
staffing have delayed lease sales and permitting.
2:41:43 PM
COMMISSIONER FEIGE explained The Castle Mountain Group is a
corporation co-owned with her husband; its corporate activities
continue and are completely unrelated to those of DNR.
Regarding staffing, she said DNR has experienced difficulties
recruiting and retaining staff in recent years due to
instability and competition brought by the oil, gas, and mining
private sectors. She said of DNR's 900 budgeted positions,
about 100 are vacant, and each division will refill positions
based on a priority to fill permitting adjudication vacancies.
CO-CHAIR TARR expressed her concern about the potential loss of
jobs to opportunities outside of Alaska.
REPRESENTATIVE TALERICO recalled past state land disposal
programs that have consisted of very remote land with no road
access and have been unsuccessful, for example, land in the
Denali Borough at Mucha Lake, which has been available for about
15 years; in fact, he said he has been told all the good land is
gone. He asked whether there is available state-owned land with
access and with development possibilities, and if the land
disposal program can be improved.
2:46:54 PM
COMMISSIONER FEIGE informed the committee the administration
seeks to put more acreage into private hands; she acknowledged
the available land is remote but opined there are opportunities
created by current technology. She returned to the [ongoing]
conveyance of land from BLM and said the Division of Mining,
Land, and Water reviewed the land classification process to
prioritize land selection and to focus on an expanded amount of
settlement land, agricultural land, and areas near the Nenana
River bridge.
2:49:08 PM
CO-CHAIR LINCOLN opened public testimony on the confirmation
hearing of Corri Feige, commissioner to DNR. After ascertaining
no one wished to testify, public testimony was closed.
REPRESENTATIVE TUCK returned attention to Commissioner Feige's
resume and pointed out her work history with The Castle Mountain
Group and other entities. He questioned whether her work for
The Castle Mountain Group will continue during her term as
commissioner.
COMMISSIONER FEIGE restated work done by The Castle Mountain
Group "on the aviation side" is managed by her husband;
furthermore, The Castle Mountain Group is an "S corp entity"
thus the corporation continues, although she is not affiliated
with the corporation. Aurora Geophysical Services was a company
founded in the mid-'90s that is now closed.
2:51:18 PM
REPRESENTATIVE TUCK referred to her position with Pioneer
Natural Resources/Evergreen Resources during the time of an
"anti-development frenzy" and asked for more information on this
matter.
COMMISSIONER FEIGE explained Evergreen Resources was exploring
in the Matanuska-Susitna (Mat-Su) area near Port MacKenzie for
coal bed methane, which led to an anti-development frenzy from
property owners who were unaware they did not own subsurface
mineral rights to their property. She said campaigns to stop
the development of coal syngas came to Alaska and DNR was
unprepared for questions from the public about development
activities and possible impacts to private water wells.
Commissioner Feige said there was misinformation spread by
Outside interests and to avoid a similar situation there should
be numerous opportunities for public engagement to hear
proponents and opponents answer questions about a certain
development. In further response to Representative Tuck, she
opined there is no longer an anti-development frenzy, but there
should always be healthy tension between natural resource
project proponents and opponents, which leads to better
projects.
REPRESENTATIVE TUCK expressed his concern about the elimination
of the Division of Agriculture and its programs due to the
administration's priorities. He recognized Commissioner Feige's
long experience working with the oil and gas industry and urged
her to represent the agricultural industry in the same manner.
He remarked:
I believe that you have a lot of good experience and
would do a great job at this, as long as you have a
listening ear from the governor and from Donna Arduin
[Director, Office of Management and Budget, Office of
the Governor].
2:57:38 PM
COMMISSIONER FEIGE responded:
... while the Division of Agriculture has been
proposed for downsizing it's not going away and the
core programs that have been retained ... were
identified as, as those most impactful ... for the
state dollars in, in the budget as conceived. ...
We're, we're in the process now of trying to find
solutions so that those programs like the Alaska Grown
and like the farmers' market program can potentially
continue if, if the industry desires ....
REPRESENTATIVE TUCK restated his main concern is the process
that the administration used without first talking to the
industry.
REPRESENTATIVE HOPKINS appreciated Commissioner Feige's response
that it is important for DNR to listen to comments from local
communities. He referred to the commissioner's 1/15/19 opinion
piece related to Donlin [Gold] permitting [document not
provided]. The statement referenced DNR's interaction with
Calista Corporation and The Kuskokwim Corporation (TKC). He
remarked:
I wanted to ask if you are aware of the dozen or so
community and Tribal resolutions that have publicly
said they do not support the Donlin mine in its
current form, and how would you take into account
those 12 or so communities that oppose it ... and how
would you incorporate that into modifying a mine's
construction or modifying the requirements that you
put in a permit to move forward with a large scale
[mine permit].
3:00:50 PM
COMMISSIONER FEIGE expressed her belief the comments from the
communities in opposition are very important and she urged those
concerned to provide alternatives that could become a part of
the analyses and design of the project "if it's appropriate, you
know, and the engineering side bears out." In further response
to Representative Hopkins, she said she was aware of a number of
resolutions [in opposition].
3:01:38 PM
CO-CHAIR TARR read the following statement:
The resources committee has reviewed the
qualifications of the governor's appointee,
Commissioner Corri Feige, Department of Natural
Resources, and recommends that the name be forwarded
to a joint session for consideration. This does not
reflect intent by any of the members to vote for or
against this individual during any further sessions
for the purposes of confirmation.
3:02:00 PM
3:02:48
ADJOURNMENT
There being no further business before the committee, the House
Resources Standing Committee meeting was adjourned at 3:02 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HRES Building Alaska’s Blue Economy – Alaska’s College of Fisheries & Ocean Sciences 3.4.19.pdf |
HRES 3/4/2019 1:00:00 PM |
Fisheries |
| Corri Feige Resume.pdf |
HRES 3/4/2019 1:00:00 PM |
Corri Feige |
| Corri Feige Supporting Document - Letter of Support 3-4-19.pdf |
HRES 3/4/2019 1:00:00 PM |
Corri Feige Confirmation |