Legislature(2005 - 2006)CAPITOL 124

02/16/2005 01:00 PM House RESOURCES


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01:05:39 PM Start
01:07:31 PM Overview: Enstar Natural Gas Company
01:48:52 PM HB107
02:27:55 PM HB130
03:06:54 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 130 UNIVERSITY LAND GRANT/STATE FOREST TELECONFERENCED
Heard & Held
+ SJR 2 ENDORSING ANWR LEASING TELECONFERENCED
Moved Out of Committee
Bills Previously Heard/Scheduled
= HB 107 ATTY FEES: HUNTING/FISHING INTERFERENCE
Moved CSHB 107(RES) Out of Committee
HB 130-UNIVERSITY LAND GRANT/STATE FOREST                                                                                     
                                                                                                                                
CO-CHAIR RAMRAS announced  that the final order  of business would                                                              
be HOUSE  BILL NO.  130  "An  Act granting  certain state  land to                                                              
the  University   of  Alaska   and  establishing  the   university                                                              
research forest; and providing for an effective date."                                                                          
                                                                                                                                
MYRL  THOMPSON, Susitna  Valley,  said  he has  been  a victim  of                                                              
another  fast-track  bill,  and  skirting the  public  process  is                                                              
problematic.   He  said he  called his  community council  members                                                              
and community leaders  regarding HB 130, and across  all political                                                              
parties only one  person had heard that 1,700 acres  of land along                                                              
Willow  Creek and  Frying Pan  Lake were  up for  disposal to  the                                                              
university, and  all were concerned.   He related a vignette  of a                                                              
mountain  adjacent  to lands  his  family owns  in  the lower  48.                                                              
Developers took  the trees,  then the topsoil,  and then  the rock                                                              
and gravel.   After seven  years the mountain  was gone,  he said.                                                              
Mr. Thompson  is concerned  that the same  could happen on  HB 130                                                              
lands,  because there  is a  very aggressive  timber chip  company                                                              
that is interested  in university land.   He said that  the public                                                              
needs to be  brought into the process,  and "it is a  good idea to                                                              
go  local and  check  with people  before  you  fast track  public                                                              
lands into  private industry,  which is  probably what's  going to                                                              
happen to  this.  I would  rather see you  give $5 million  a year                                                              
in cash  to the university  and go about  public lands  in another                                                              
way."                                                                                                                           
                                                                                                                                
2:27:55 PM                                                                                                                    
                                                                                                                                
JIM BRENNAN, Warm  Springs Bay, noted that there are  two units in                                                              
DNR's area  plan that  are subsumed  by HB 130:  the lagoon  and a                                                              
parcel  bordering Baranof  Lake.   The area plan  noted that  both                                                              
parcels are  largely wetland, he  said, and even though  the lands                                                              
were  selected  by  the state  from  the  federal  government  for                                                              
remote  settlement, the  selection  document had  noted that  land                                                              
suitable for  development is very  limited and should  be directed                                                              
where the  town site  community now  is, at the  head of  the bay.                                                              
There are  numerous, small private  parcels in that area,  many of                                                              
which are still undeveloped, he said.                                                                                           
                                                                                                                                
MR. BRENNAN said  that DNR's area plan classifies the  units in HB
130   as   mini-dispersed   recreation,   which  is   defined   as                                                              
"recreational  pursuits  that  are not  site-specific  in  nature,                                                              
such  as   beach  combing,   recreational  boating,   or  wildlife                                                              
viewing."   DNR's  management  intent  is to  retain  it in  state                                                              
ownership  "to  protect  the salt  lagoon,  maintain  the  natural                                                              
resources/scenic values  of the parcel and insure  continuation of                                                              
its  use for  dispersed  recreation."   He  said  he  is a  third-                                                              
generation Alaskan  from Southeast, and he has been  going to Warm                                                              
Springs Bay  since he was  a kid.   "Unique Alaskan  places shared                                                              
and appreciated  by the public  the way  they are now,  should not                                                              
be irrevocably  given up  for some  small development  in exchange                                                              
for what's going to amount to chump change," he said.                                                                           
                                                                                                                                
2:31:44 PM                                                                                                                    
                                                                                                                                
CHRISTINE  LUNDSTEDT, Sitka  and Baranof  Warm Springs,  expressed                                                              
concern  that the  governor  has been  working  on the  university                                                              
land  transfer  for more  than  a year,  and  the  public is  just                                                              
becoming aware  of it.  She said  that at the first  hearing of HB
130,  only "a  handful" of  people  were allowed  to testify,  and                                                              
then  during the  next hearing  each witness  was initially  given                                                              
three  minutes, then  the  committee co-chair  changed  it to  two                                                              
minutes.  She  added that less than  half of the hearing  time was                                                              
devoted to  public testimony.   She said  that "people  have taken                                                              
time  off from  their  jobs  for  two days  to  try to  talk,  and                                                              
couldn't."   She added  that Joe Beedle  and Mary Montgomery  were                                                              
allowed  to "lobby  for  this  give-away.   They  took  up a  huge                                                              
amount of public time."                                                                                                         
                                                                                                                                
CO-CHAIR RAMRAS  interposed and  said that  Ms. Lundstedt  was not                                                              
getting to  her testimony, "which  we would appreciate,"  and that                                                              
there are 60 to 80 people that would like to testify.                                                                           
                                                                                                                                
MS.  LUNDSTEDT  responded  that,  "You're  taking up  my  time,  I                                                              
think, right  now."  She  added that the  way the public  has been                                                              
received  has  been  very  much  "in  line  with  the  legislation                                                              
itself, and  it was very  sad to see  that you interrupted  person                                                              
after   person   after  asking   them   transparently   irrelevant                                                              
questions and  using up their time."   She pointed out  to the co-                                                              
chair that  he is on television  and many people have  remarked at                                                              
how  he has  been  smirking and  rolling  his  eyes during  public                                                              
testimony.    "A  lot  of  people  have  seen  this  contempt  and                                                              
derision, and it has been impossible to ignore," she added.                                                                     
                                                                                                                                
MS. LUNDSTEDT  said that  Co-Chair Ramras  stated that  the public                                                              
and local  governments  are not  being short  changed on the  time                                                              
allowed for  involvement.  She  countered that in  Petersburg "the                                                              
university called from  the airport and said they  would meet with                                                              
residents  two hours  in  advance."   She  said that  HB 130  will                                                              
never  pass public  scrutiny  and  will "transform  our  beautiful                                                              
Sitka Sound"  without Sitka  being able to  do anything  about it.                                                              
HB 130 "carves  the heart" out of  Warm Spring Bay, she  said, and                                                              
is "in direct defiance"  to DNR's area plans.   "Joe Beedle talked                                                              
around  the real  issue, here,  and  that is  once the  university                                                              
gets 270,000 acres...of  public land...the university  system owns                                                              
it  [and] does  not  need to  ask  anyone's permission  to  strike                                                              
their deals  and get  cash."   She added  that any easement  given                                                              
for  the  benefit  of  locals  can  be  vacated  as  soon  as  the                                                              
university sells  its land.   The university  can meet  with local                                                              
people if  it wants to,  but it has  no obligation to  include the                                                              
public in  decision-making, she said.   Ms. Lundstedt  opined that                                                              
HB 130  is a  terrible way to  fund the  university.   "The public                                                              
land  transfer  will  provide  one  percent  of  the  university's                                                              
budget,  and our  precious  public lands  are  gone forever,"  she                                                              
said.                                                                                                                           
                                                                                                                                
REPRESENTATIVE  CRAWFORD  asked   about  the  Lisianski  area  and                                                              
Biorka  Island, which  he heard  was a  sea lion  pullout and  the                                                              
marine mammal act won't allow its use.                                                                                          
                                                                                                                                
MS. LUNDSTEDT  responded that  the city already  made its  move to                                                              
make Middle  Island  available for  the public.   People are  very                                                              
steamed,  she said.   She  added that  the university  has to  say                                                              
they want this  land, but the land  will be hard to  sell.  Access                                                              
and  utilities will  be  difficult,  particularly  for Biorka  and                                                              
Middle Islands.                                                                                                                 
                                                                                                                                
REPRESENTATIVE  ELKINS commented  that the  co-chair has  "gone to                                                              
length  to try  to  pacify  the public  in  relation  to 130,  and                                                              
they've taken a  big step here to continue these  hearings, at the                                                              
same  time to  reassess  any movement  on  this legislation  until                                                              
they can work out some of these problems."                                                                                      
                                                                                                                                
CO-CHAIR RAMRAS said that he will work on his freshman form.                                                                    
                                                                                                                                
MELINDA  HOFSTAD, Warm  Springs Bay,  said she  went to a  meeting                                                              
last week  with representatives  from DNR  and the university  and                                                              
was shocked  that there is a  267-acre parcel in Warm  Springs Bay                                                              
that has  already been  determined to  be transferred  from public                                                              
hands.  She  said she has been  a property owner there  for almost                                                              
30 years,  and it  was the  first she  heard about  it.  She  said                                                              
that  the DNR  representative told  the attendees  that there  had                                                              
been  no  public  hearings  to  determine  which  lands  would  be                                                              
included in  HB 130, "because  he only had  four months to  do his                                                              
work  and the  governor  wanted  this bill,  this  session."   She                                                              
added that  the majority  of the Baranof  property is  wetland and                                                              
steep  terrain.   DNR has  said that  the land  is unsuitable  for                                                              
home  sites, she  said,  which seems  to  be  what the  university                                                              
wants to do with it.                                                                                                            
                                                                                                                                
MS. HOFSTAD  said that HB 130 has  had no public process,  and she                                                              
requests that the  legislation be pulled and that  the state start                                                              
over with  an open  public process.   She  said that Baranof  Warm                                                              
Springs is  in the Sitka Borough,  and the Sitka Assembly  held an                                                              
emergency  meeting  and  unanimously  opposed HB  130  because  it                                                              
knows  it could  not  afford  sewer  and water  systems,  schools,                                                              
docks,   harbors,  and   fire  protection   that   this  type   of                                                              
development  would  require.     "In  the  case  of  Baranof  Warm                                                              
Springs, you  would be  taking a  century-old historic  village of                                                              
15.4  private  acres  and  adding   an  additional  267  acres  of                                                              
development to  it with absolutely no  input from those  of us who                                                              
already live  here," she  said.   And she  asked the committee  to                                                              
think  about how  they  would feel  if a  bureaucracy  arbitrarily                                                              
increased the size  of their community by 18  times without public                                                              
input.                                                                                                                          
                                                                                                                                
2:43:39 PM                                                                                                                    
                                                                                                                                
ALBERT HOFSTAD,  Commercial Fisherman,  Warm Springs Bay,  said he                                                              
has been  going to Baranof  Warm Springs for  50 years, and  he is                                                              
worried  about the  impact of  development  on the  wild stock  of                                                              
salmon that  enters the bay and  spawn by the falls and  the dock.                                                              
He said  that the salmon  go in  and out of  the salt lagoon.   He                                                              
said his  main worry  is development  with drilling and  blasting,                                                              
which could divert the hot springs.                                                                                             
                                                                                                                                
2:45:14 PM                                                                                                                    
                                                                                                                                
JIM  SLATER,  Engineer  and Commercial  Fisherman,  Pelican,  said                                                              
Pelican will  be significantly  affected by  HB 130.   He  said he                                                              
made his home in  Lisianski Inlet for business and  because of its                                                              
natural  beauty and  subsistence opportunities,  and the  proposed                                                              
land grant threatens  his way of life and his business.   He noted                                                              
that the  amount of  land to  be transferred  is over 1000  acres,                                                              
dwarfing the amount  of private land now in Lisianski  Inlet.  The                                                              
effect  of   the  land  transfer   on  the  environment   and  the                                                              
surrounding communities  is overwhelming, unstudied,  and unknown,                                                              
he said.   He added  that the local  utilities are  overloaded and                                                              
most  of the  surrounding subdivisions  discharge sewage  directly                                                              
into the inlet,  so he requested a study of any  increase in waste                                                              
into the  inlet.  He  said that the  Northern Southeast  Area Plan                                                              
went through  a public  process,  and the university  will  not be                                                              
required to  stay with that  plan.  "If  you transfer any  of this                                                              
land out  of the public domain  without safeguarding the  needs of                                                              
local  communities, I  believe it  is a  failure of  your duty  as                                                              
elected officials,"  he stated.   He said  the lands are  used for                                                              
water supply and subsistence.                                                                                                   
                                                                                                                                
CO-CHAIR RAMRAS  interjected to  ask how  Mr. Slater accesses  the                                                              
land for subsistence uses.                                                                                                      
                                                                                                                                
MR. SLATER  answered that  mostly the  national forest  comes down                                                              
to the  shore, but that  if people own a  lot, they walk  onto the                                                              
Tongass without  trails.  Others  moor their skiffs to  access the                                                              
forest.  He  continued to discuss  the parcel in HB 130  on Yakobi                                                              
Island, where most  of the surrounding land is wilderness.   It is                                                              
also  a boater's  refuge from  rough  weather, he  said, and  most                                                              
local fishing  boats sell fish there.   "Yakobi Island  is premier                                                              
wilderness," and  the local community  has worked hard  to protect                                                              
it, he said.   The mechanism of  land grants to fund  a university                                                              
is antiquated and  robs the public of its right to  be involved in                                                              
the disposal of public assets.                                                                                                  
                                                                                                                                
MR.  SLATER requested  that parcel  MF1001 is  eliminated from  SB
130, and  that parcel SP1002 is  substantially reduced in  size to                                                              
be consistent with  the community development plan and  that it go                                                              
through  a  public process.    He  also requested  that  committee                                                              
members  consider all  communities  and not  just  those in  their                                                              
particular  district.   He stated  that he  had written  testimony                                                              
from Norm  Carson,  who was not  given time  to speak  previously.                                                              
Mr. Slater was denied the opportunity to read it.                                                                               
                                                                                                                                
2:50:26 PM                                                                                                                    
                                                                                                                                
CAROL  MARTINEZ,  Mitkof  Island,  Petersburg,  said  her  Tlingit                                                              
ancestors  have  lived on  Mitkof  Island since  time  immemorial.                                                              
"Giving  all  of  these  lands  for  possible  private  sales,  or                                                              
whatever UAF  intends, would devastate  my Native  community," she                                                              
said.   She  added that  access  to native  foods  for food,  art,                                                              
culture  and  teaching  children  is a  necessity  to  the  tribal                                                              
heritage.  There  are less than 400 tribal members  in Petersburg,                                                              
and  "having  access   to  these  native  foods   is  imperative."                                                              
Subsistence means  survival, she  said.  She  added that  she just                                                              
found out  about HB 130  and its fast  track, and she  is appalled                                                              
that  the "state  government is  not  taking into  heart our  best                                                              
interests,"   and  she   respectfully  asked   the  committee   to                                                              
reconsider.                                                                                                                     
                                                                                                                                
2:52:12 PM                                                                                                                    
                                                                                                                                
MIKE  SALLEE, Sawmill  Operator,  Ketchikan, Alaska,  said he  was                                                              
born in Ketchikan.   He expressed unease about  how the University                                                              
of  Alaska logs  their lands.    He added,  "Southeast Alaska  has                                                              
been coughing up  timber at an unsustainable rate  for the last 50                                                              
plus  years  through  grand-scale  harvest...consisting  of  clear                                                              
cuts on federal,  state and private lands.  Now  we are squabbling                                                              
over the remote  and scattered dregs of commercial  timber that is                                                              
left."                                                                                                                          
                                                                                                                                
MR. SALLEE said  he objects to both Senator  Murkowski's promotion                                                              
of  giving  the  university  250,000 acres  of  federal  land  and                                                              
Governor Murkowski's  desire to match  that with state land.   "If                                                              
by some  stretch of  the law  the Murkowski's  succeed in  pulling                                                              
off  these land  grabs,  I would  insist  on  extremely rigid  and                                                              
binding   covenants   in  perpetuity   through   all   prospective                                                              
ownerships  that prohibit  clear  cutting, round  log export,  and                                                              
any other timber  extractions exceeding the 10,000  board foot per                                                              
year personal  use allocation  the U.S.  Forest Service  currently                                                              
administers  on federal lands."   Specifically,  Mr. Sallee  said,                                                              
the  Moser Bay  parcel is  mostly  steep ground  not suitable  for                                                              
home sites,  and he is "very  apprehensive" about  developing Wolf                                                              
Lakes trail  for industrial tourism.   He said he was  a member of                                                              
the  Cleveland  Users  Coalition  which opposed  road  access  and                                                              
logging on  the Cleveland Peninsula.   "The Cleveland is  one of a                                                              
dwindling  number of  places  accessible to  local  hunters."   He                                                              
concluded that  DNR has not  responded adequately to  the public's                                                              
comments on  the Central  and Southern  Southeast Area  Plans, and                                                              
it  is  irresponsible  to  use HB  130  to  avoid  addressing  the                                                              
public's  concerns.    He  added   that  he  does  not  trust  the                                                              
university's  promise  to  address   public  concerns  after  "the                                                              
egregious   breach  of  public   trust  that   occurred   here  in                                                              
Ketchikan" with regard to logging at south Tongass.                                                                             
                                                                                                                                
2:56:12 PM                                                                                                                    
                                                                                                                                
JENNIFER PRICE,  Sitka and Warm  Springs Bay, said she  is opposed                                                              
to HB 130  because large-scale development will  negatively impact                                                              
the  settlement  at Warm  Springs  Bay.   She  added  that she  is                                                              
disillusioned by  the way this  bill was  made public.   Ms. Price                                                              
has  a charter  business, and  she is  familiar with  many of  the                                                              
Southeast  lands in  HB  130, and  most  of them  are  "glittering                                                              
jewels...which  would  be  negatively transformed  by  any  large-                                                              
scale development."   She concluded that she hopes  that HB 130 is                                                              
thrown out.                                                                                                                     
                                                                                                                                
JOHN HIRSCHENREIDER,  Warm Springs Bay, stated that  he is opposed                                                              
to HB  130 for all  reasons previously  mentioned.  "I  would like                                                              
you to  consider completely  canning the bill,"  he said.   "And I                                                              
believe that  most Alaskans  would be in  favor of a  small income                                                              
tax if it was  earmarked for the university," which  would be more                                                              
dependable, he said.                                                                                                            
                                                                                                                                
CO-CHAIR  RAMRAS asked  Mr. Loeffler  to update  the committee  on                                                              
how  DNR  is  changing  HB  130, "so  the  folks  will  feel  more                                                              
comfortable about this process."                                                                                                
                                                                                                                                
ROBERT LOEFFLER,  Director,  Division of  Mining, Land and  Water,                                                              
Department of Natural  Resources (DNR), Juneau, said  DNR is going                                                              
through testimony  "and we  will look  at things we  can do."   He                                                              
said,  "Examples  of  parcels  being  the  Kodiak  launch  parcel,                                                              
problems   at   Neet[s]   Bay,   some  of   the   public   process                                                              
questions...of section  6, some of  the questions with  respect to                                                              
borough  entitlements that  I think  the mayor  of Craig and  some                                                              
others discussed,  some of  the other  properties that  we've also                                                              
heard from,  and questions of easements  and trails that  have not                                                              
been  reviewed, or  that  should  be reserved  out  and/or find  a                                                              
process  to do  that,  and examples  of  facilities...such as  the                                                              
watershed   or   water   system   at   P[ort]   Alexander,   Point                                                              
Protection."   He said  DNR and  the university  will continue  to                                                              
listen to testimony and try to accommodate them.                                                                                
                                                                                                                                
REPRESENTATIVE  CRAWFORD requested  that DNR  find parcels  closer                                                              
to  population  centers of  Alaska,  like  Willow where  there  is                                                              
60,000 acres.   He said  part of that  is suitable  for settlement                                                              
and it is closer to people and more easily turned into cash.                                                                    
                                                                                                                                
BILL BURTON, Co-Owner,  Kodiak Game Ranch at Narrow  Cape, Kodiak,                                                              
said HB 130  includes 2,800 acres  of the ranch's lease  area.  He                                                              
said the  leases keep  the land  open to  the public; without  the                                                              
leases it  would have been  in private lands.   "If this  is taken                                                              
by the  university  it could prevent  public  access, not  only to                                                              
the Narrow  Cape  area but  also to the  rest of  the ranch  which                                                              
includes...hunting  and fishing  areas  that the  public has  been                                                              
using ever  since we've had  the place," he  said.  He  noted that                                                              
he is opposed  to HB 130 unless  the university can give  both the                                                              
borough and  the ranch a written  agreement that all  current land                                                              
agreements remain in  effect.  He added that the  ranch may not be                                                              
able to renew  the lease.  He  said SB 130 will take  the majority                                                              
of his  livestock winter range,  which is absolutely  essential to                                                              
his operation.   He spoke of a  fencing contract with  DNR, and he                                                              
has already  bought the fencing.   He would need to  be reimbursed                                                              
for the materials  or continue with the signed contract.   He said                                                              
he is not against  the launch complex and he believes  in military                                                              
research, but  he doesn't  see where  it qualifies the  university                                                              
to take  all that  land.   He said he  would like  to see  a lease                                                              
renewal right written into the bill.                                                                                            
                                                                                                                                
3:05:46 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  RAMRAS  suspended public  testimony  and  said that  the                                                              
university and  DNR will  work on SB  130.  He  said, "One  of the                                                              
wonderful things about  living in America and living  in Alaska is                                                              
access to  private land.   I think  folks are...thinking  of tract                                                              
homes  going  into  these  remote sites;  this  is  about  private                                                              
people...having  access to  land  slowly in  a careful  methodical                                                              
way over the next  20 years and more, and expanding  the ownership                                                              
of private  lands in  Alaska which  is a  noble effort,  but we're                                                              
going  to be  very sensitive  to  the issues  and  as they  effect                                                              
individual communities along the way."                                                                                          
                                                                                                                                
[HB 130 was held over.]                                                                                                         
                                                                                                                                

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