Legislature(2005 - 2006)CAPITOL 124

03/04/2005 01:00 PM House RESOURCES


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01:07:06 PM Start
01:24:24 PM HB130
02:55:24 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Bills Previously Heard/Scheduled
= HB 130 UNIVERSITY LAND GRANT/STATE FOREST
Moved CSHB 130(RES) Out of Committee
HB 130-UNIVERSITY LAND GRANT/STATE FOREST                                                                                     
                                                                                                                                
CO-CHAIR RAMRAS announced  that the only 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."                                                                                   
                                                                                                                                
CO-CHAIR SAMUELS moved to adopt  committee substitute (CS) HB 130                                                               
labeled  24-GH1034\G, Bullock,  3/4/05,  as a  work  draft.   [No                                                               
objection  was stated,  and the  committee treated  Version G  as                                                               
before it.]                                                                                                                     
                                                                                                                                
CO-CHAIR RAMRAS said the committee  will take public testimony in                                                               
increments of two minutes, and try to vote the bill out today.                                                                  
                                                                                                                                
REPRESENTATIVE CRAWFORD objected for  purposes of discussion.  He                                                               
said he was told that the  land selections were set in stone, and                                                               
he wanted to know how the changes in the CS came about.                                                                         
                                                                                                                                
REPRESENTATIVE ELKINS said he fought long  and hard on HB 130 and                                                               
is pleased that the committee is close  to moving it.  He said he                                                               
is supportive  of Representative  Crawford, and  now that  he and                                                               
some  others  have  what  they   want,  he  is  embarrassed  that                                                               
Representative Crawford's concerns were not addressed.                                                                          
                                                                                                                                
CO-CHAIR SAMUELS said  most public complaints are  taken care of.                                                               
He added that  he thought the community of Kodiak  should buy the                                                               
rocket launch  site.   He opined  that the  committee essentially                                                               
made parks  out of all the  lands that were removed  from HB 130.                                                               
He said he agrees with  the watershed-related changes.  He thinks                                                               
the  committee  "listened  to   the  public  process,"  including                                                               
personal attacks directed at Co-Chair Ramras.                                                                                   
                                                                                                                                
REPRESENTATIVE LEDOUX  thanked the co-chairs for  eliminating the                                                               
Kodiak parcel from HB 130.                                                                                                      
                                                                                                                                
REPRESENTATIVE ELKINS said  he did not remember  any testimony on                                                               
Lena Point.                                                                                                                     
                                                                                                                                
REPRESENTATIVE CRAWFORD  noted there  was a  lot of  testimony by                                                               
the public, the committee, and  other members of the legislature.                                                               
This CS came from  somewhere, but he said he did  not know how it                                                               
was  negotiated.     Representative  Wilson's   concerns  weren't                                                               
addressed in it,  he said, and he  would like to know  how the CS                                                               
came about.                                                                                                                     
                                                                                                                                
REPRESENTATIVE SEATON said  there is nothing that  puts any lands                                                               
into a park  status--they are fully developable by  DNR through a                                                               
public process.  "We have not  put any restriction on this land,"                                                               
he added.                                                                                                                       
                                                                                                                                
CO-CHAIR RAMRAS  said that  Lena Point was  in the  original bill                                                               
and  was deleted  because of  ingress and  egress problems.   "We                                                               
approached  Representative Weyhrauch,  and our  intention in  the                                                               
resource committee  was to get  a bill  that we thought  would be                                                               
able to  move out of resources  and through finance, and  make it                                                               
to the house floor."   He said that Representative Weyhrauch sits                                                               
on finance and wanted his  concerns on behalf of his constituents                                                               
in  Southeast.   DNR's  letter dated  March  3, 2005,  references                                                               
Lisianski Point and  Biorka Island, he added.  He  said he didn't                                                               
want the finance committee to  "listen to constituents and try to                                                               
extract land parcels."   He said the  resource committee listened                                                               
to  two constituent  groups, the  public who  called in,  and the                                                               
members of the  committee.  He said he got  together with the co-                                                               
chair  and staff  to make  it work,  and "we  will deliver  97.12                                                               
percent of  the land the  university requested."   If there  is a                                                               
suggestion of chicanery  or anything less than  sunshine, he will                                                               
stand by the bill, and he  anticipates getting some heat from the                                                               
administration and  the university.  He  said he wants to  get on                                                               
with the people's business and not  clog up the committee with HB
130 for another two or three weeks.                                                                                             
                                                                                                                                
REPRESENTATIVE CRAWFORD said  he would have liked  to have input,                                                               
but "the minority is the minority."  He removed his objection.                                                                  
                                                                                                                                
CO-CHAIR RAMRAS  explained that in  the CS, page 5,  lines 27-28,                                                               
covers the issue  of access and it allows DNR  to protect trails,                                                               
easements, and miscellaneous  errors.  He said page  7, lines 21-                                                               
24, corrects omissions  and errors like were found  in Hollis and                                                               
"perhaps  Tenakee."    On  pages 7-8,  lines  28-31,  acreage  is                                                               
extracted  from the  bill based  on  concerns by  the public  and                                                               
Representatives  Wilson, LeDoux,  and Elkins.   He  said that  on                                                               
page 8,  lines 11-29,  the CS addresses  an amendment  for public                                                               
notice and  process, and on  page 10, lines 16-22,  the municipal                                                               
entitlement process is addressed.                                                                                               
                                                                                                                                
1:24:24 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  RAMRAS said  he  will offer  an  amendment for  logging                                                               
interests in his district.                                                                                                      
                                                                                                                                
1:25:17 PM                                                                                                                    
                                                                                                                                
DORIS BAILEY,  Assembly Member, City  and Borough of  Sitka, said                                                               
the assembly had  an emergency meeting to  unanimously oppose the                                                               
transfer of HB 130 parcels that  are within the borough, with the                                                               
exception of  the Japonski  Island parcel.   She said  that using                                                               
the term  "not in my  back yard," is  an excuse not  to "consider                                                               
the very strong  and loud protests you have  heard from Southeast                                                               
Alaska."    She noted  that  the  bill  is intended  to  transfer                                                               
"viable commercial  property" appropriate for  development, which                                                               
would provide  funds to the  university.  She explained  that the                                                               
university already  controls 680 acres  in Sitka, and  the Alaska                                                               
Mental  Health Trust  controls substantial  acreage, so  she said                                                               
the community  is "already  shouldering more  than its  share" of                                                               
trust lands.   She questioned whether the  university will accept                                                               
local  land-use controls.   Biorka  Island is  16 miles  into the                                                               
Pacific Ocean  and impossible to get  to for days at  a time, and                                                               
it is  near a heavily used  fishery.  The possibility  of a lodge                                                               
could put pressure on that fishery and on Goddard Hot Springs.                                                                  
                                                                                                                                
1:28:25 PM                                                                                                                    
                                                                                                                                
MS. BAILEY  said that Biorka  Island contains  navigational aids,                                                               
including two  radars and other communication  equipment, and she                                                               
asked if the Federal Aviation  Administration has been contacted.                                                               
She  said that  she is  "amazed" that  the university  would want                                                               
land  that has  a specific  encumbrance.   Middle Island  now has                                                               
many homes and cabins, and  "the entire developable beachfront of                                                               
Middle Island  is targeted for residential  and recreational uses                                                               
and has already been selected.   The university would acquire two                                                               
beachfront areas, one which is very  steep and one that that runs                                                               
dry at low tide.  The center of the island is steep and rocky...                                                                
                                                                                                                                
CO-CHAIR RAMRAS asked Ms. Bailey to "wind it up."                                                                               
                                                                                                                                
MS. BAILEY concluded  that development is not  appropriate on the                                                               
parcels in  HB 130.   She said the  city needs land  for building                                                               
residential units,  and the university  owns a large  parcel that                                                               
the  city  "has coveted  for  residential-building  use for  many                                                               
years."  She  mentioned the cost of utilities,  and her testimony                                                               
was cut off.                                                                                                                    
                                                                                                                                
1:30:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CRAWFORD  said  he  tried to  give  Ms.  Bailey's                                                               
concerns "a voice," but decisions were made without it.                                                                         
                                                                                                                                
1:31:16 PM                                                                                                                    
                                                                                                                                
VALERY  MCCANDLESS,  Mayor,  Wrangell,  said  the  Wrangell  city                                                               
council has not taken an official  position on HB 130.  She added                                                               
that the city will make its  position on Olive Cove, Thoms Place,                                                               
and Earl West Cove known in a few weeks.                                                                                        
                                                                                                                                
1:32:02 PM                                                                                                                    
                                                                                                                                
STACEY  FRITZ, Student,  University  of  Alaska, Fairbanks,  said                                                               
that it was  wonderful that the concerns of  the public regarding                                                               
Narrow Cape  on Kodiak  Island were considered.   She  added that                                                               
funding  the  university  is important  and  she  feels  terrible                                                               
opposing support,  but "this type  of support" has  conflicts and                                                               
provides  little funding.   She  noted that  it is  a land  grant                                                               
university, but  the land  grant act was  passed about  150 years                                                               
ago  and she  questions how  applicable it  is in  today's world.                                                               
The  land  transfer  could  provide   only  2.5  percent  of  the                                                               
university's annual funding, but only  if it is managed perfectly                                                               
with  no   problems.    She   questions  whether   the  potential                                                               
environmental  degradation and  stress  to  small communities  is                                                               
worth it.                                                                                                                       
                                                                                                                                
1:34:24 PM                                                                                                                    
                                                                                                                                
DEB SPENCER,  Co-owner and Manager, Shoreline  Inc, Pelican, said                                                               
she compared land selections in  Lisianski Inlet with the parcels                                                               
identified in  DNR's Northern Southeast  Area Plan, and  she said                                                               
that the parcels  in HB 130 are categorized  as recreational: not                                                               
to be sold  to individuals and to remain in  their current state.                                                               
The areas  designated in  the area plan  for settlement  are only                                                               
for residential  and private use.   The university will  not have                                                               
to follow the plan.  People worked very hard on the area plan...                                                                
                                                                                                                                
1:36:00 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
CO-CHAIR RAMRAS told her that her two minutes were up.                                                                          
                                                                                                                                
MS. SPENCER  continued to note  that her business has  a tideland                                                               
permit to anchor her scow off lands  in HB 130.  The business has                                                               
held the  permit for over  20 years,  and the land  transfer will                                                               
displace  her business  which buys  fish from  over 100  vessels.                                                               
She speculated  that the  parcels that were  removed from  HB 130                                                               
were in the  district from a house resource member  or had a high                                                               
proportion  of  testimony, and  she  pointed  out that  only  one                                                               
person  was allowed  to testify  from  Pelican in  spite of  many                                                               
attempting to.                                                                                                                  
                                                                                                                                
1:37:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KAPSNER asked how the  land transfer will hurt Ms.                                                               
Spencer's business.                                                                                                             
                                                                                                                                
MS.  SPENCER  said she  has  a  fish-buying scow  anchored  three                                                               
months  each year,  and after  the university  owns the  adjacent                                                               
land, she will not have any right to be there.                                                                                  
                                                                                                                                
REPRESENTATIVE KAPSNER asked what her family would do.                                                                          
                                                                                                                                
MS. SPENCER  said it was  her family's  main source of  income so                                                               
they would scramble to find another place to anchor the scow.                                                                   
                                                                                                                                
1:38:51 PM                                                                                                                    
                                                                                                                                
JOHN   BURKE,  General   Manager,  Southern   Southeast  Regional                                                               
Aquaculture Association (SSRAA), said  he is against transferring                                                               
Neets  Creek  to  the  university, so  he  supports  the  amended                                                               
version  of HB  130.   He told  the committee  that conversations                                                               
with  the  university  that  were   designed  to  lessen  SSRAA's                                                               
concerns  about  the  land  transfer  have  only  heightened  the                                                               
organization's concern.   The university  told him that  the sole                                                               
purpose of owning the property would  be to generate revenue.  He                                                               
said SSRAA agrees  with the principle of  privatization of public                                                               
lands  but the  cost  may be  to  great with  this  land.   SSRAA                                                               
programs generate approximately $30  million in the local economy                                                               
annually, he added.                                                                                                             
                                                                                                                                
1:40:41 PM                                                                                                                    
                                                                                                                                
STACY  STUDEBAKER,  Kodiak,  thanked   the  committee  for  being                                                               
responsive  to  Kodiak's  concerns  and  eliminating  the  rocket                                                               
launch site from  HB 130.  She supports the  university and is an                                                               
adjunct faculty, but she is "having  trouble with this bill."  It                                                               
is not  a good way to  fund the university for  more reasons than                                                               
she says  she has time  to discuss.   She said the  original bill                                                               
would  have given  the university  a bad  name.   She added  that                                                               
Kodiak  has  very little  public  land  for recreation  and  that                                                               
Narrow Cape  is the choicest  accessible recreational land.   She                                                               
concluded that  the bill was on  a fast track with  no input from                                                               
affected communities.                                                                                                           
                                                                                                                                
1:43:22 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  RAMRAS said,  "We are  not funding  the university...we                                                               
are fulfilling  a contract  between the State  of Alaska  and the                                                               
university...the lands have to come  from somewhere and they have                                                               
to  have  some  value...we  can't  simply  transfer  over  frozen                                                               
tundra."                                                                                                                        
                                                                                                                                
1:44:11 PM                                                                                                                    
                                                                                                                                
TED  SMITH,   Mayor,  Petersburg,   is  disturbed  that   HB  130                                                               
disregards DNR's Central Southern Southeast  Area Plan that was a                                                               
product of  over two  years of  hard work  by the  state, federal                                                               
agencies,  local governments,  interest groups,  and the  public.                                                               
Fast-tracking  HB  130  does  not allow  people  to  analyze  the                                                               
impacts of the  land transfers, he said, and  the affected public                                                               
should have  ample opportunity to review  and comment on it.   He                                                               
added that  the Sitka  Access Study  identifies the  Warm Springs                                                               
Bay parcel  as a ferry  terminal site.   State agencies,  such as                                                               
the Department  of Transportation  & Public Facilities,  were not                                                               
involved in  the land  selections.  He  added that  Petersburg is                                                               
getting pressure to form a borough,  and one of the few remaining                                                               
enticements  for forming  a  borough is  the  ability to  acquire                                                               
unencumbered land.  "There's  virtually no remaining unencumbered                                                               
state land that could be transferred  to a borough," he said, and                                                               
the  City of  Petersburg will  send  a resolution  and letter  in                                                               
opposition to HB 130.                                                                                                           
                                                                                                                                
1:46:25 PM                                                                                                                    
                                                                                                                                
MARK  VINSEL, Executive  Director,  United  Fishermen of  Alaska,                                                               
said  his organization  has strong  concerns regarding  the Neets                                                               
Creek parcel, and he appreciates the CS.                                                                                        
                                                                                                                                
RON  SCHONENBACH, retiree,  Division of  Mining, Land  and Water,                                                               
Department of  Natural Resources,  said that  he was  involved in                                                               
land  selections in  Southeast for  many years.   He  said it  is                                                               
shocking that such a vast majority  of the HB 130 land selections                                                               
are in Southeast, affecting 13  different communities, when there                                                               
is  such a  large land  base throughout  the state.   He  opposes                                                               
conveying   wildlife  habitat,   settlement  lands,   and  public                                                               
recreation lands to the university.   He noted that all witnesses                                                               
commented that  DNR did a tremendous  job on the area  plans, and                                                               
the plans should be honored  by retaining wildlife and recreation                                                               
lands in state hands.  He  believes it is short sighted to convey                                                               
the settlement lands  to the university, which should  be sold in                                                               
a land  disposal program to  the public.   He said that  once DNR                                                               
issues  a  quitclaim  deed,  the  area plan  has  no  meaning  or                                                               
relevance  to the  university, and  the public  is betrayed.   It                                                               
"paints a  very ugly picture for  DNR because they lose  trust in                                                               
DNR," he said.  He concluded  that there is nothing magical about                                                               
the number of  acres in HB 130,  it could be any  number, and the                                                               
legislature can  fix SB 7  and include fewer  acres.  There  is a                                                               
"terrible misconception"  that the  university will  obtain long-                                                               
term revenue from these lands,  because the best state lands have                                                               
already been conveyed to others.                                                                                                
                                                                                                                                
1:50:33 PM                                                                                                                    
                                                                                                                                
MR. SCHONENBACH said  it is appropriate that  the university gets                                                               
some land, but  the committee needs to sit back  and look at what                                                               
the public is  saying and not rubber stamp what  the governor has                                                               
proposed.  There is  no urgency, he said, and he  is happy to see                                                               
the CS, but there are additional changes needed.                                                                                
                                                                                                                                
1:51:37 PM                                                                                                                    
                                                                                                                                
JOE BEEDLE,  Vice President for Finance,  Chief Financial Officer                                                               
and Treasurer  Trustee, Land Grant Endowment  Fund, University of                                                               
Alaska, Fairbanks,  said that he  hopes there is land  to replace                                                               
the land parcels  removed from HB 130 or else  that there will be                                                               
an  opportunity to  put the  parcels  back in  the bill.   He  is                                                               
concerned that  the trend is  for removal of land  that witnesses                                                               
have concerns about.                                                                                                            
                                                                                                                                
REPRESENTATIVE ELKINS has a conceptual  amendment to add a parcel                                                               
to HB  130 that was in  SB 7: 3,000  acres north of Tok  near the                                                               
Canadian border.                                                                                                                
                                                                                                                                
MR. BEEDLE  said that the property  did not have an  income value                                                               
as good as others.                                                                                                              
                                                                                                                                
REPRESENTATIVE ELKINS said he won't introduce it.                                                                               
                                                                                                                                
1:54:43 PM                                                                                                                    
                                                                                                                                
REBECCA   MCGUIRE,  Graduate   Student,  University   of  Alaska,                                                               
Fairbanks,  said she  wants a  well-funded university  system but                                                               
she  is concerned  with  HB  130 because  it  is removing  public                                                               
involvement and gives the university a  bad name.  People are cut                                                               
off after two minutes, when they  obviously have more to say, she                                                               
said.                                                                                                                           
                                                                                                                                
ROSEMARY MCGUIRE,  Fairbanks, said  she is  speaking for  a large                                                               
number  of  families  that  are involved  in  the  university  as                                                               
faculty, staff,  or students, and  they are united in  the belief                                                               
that the university  lands bill is bad for the  state and for the                                                               
university.   The  bill will  not  generate much  income for  the                                                               
university, she  said, but  it may keep  the state  from granting                                                               
future  funds.   The  bill  treats  Alaska's people  unethically,                                                               
because communities  are given very  little time to respond  to a                                                               
bill  that  has been  in  preparation  for  over  a year.    Many                                                               
communities  may be  affected strongly  and adversely,  she said,                                                               
and her  primary concern is  losing the right to  public process.                                                               
She  said she  heard Mary  Montgomery attempting  to assuage  the                                                               
fears of the  loss of the public process, but  it is disingenuous                                                               
because the bill  specifically eliminates the process.   The bill                                                               
is  not so  much  a plan  to  fund  the university  but  it is  a                                                               
transparent  plan   to  develop   public  lands   without  public                                                               
sanction.                                                                                                                       
                                                                                                                                
1:57:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON told Ms. McGuire to  look at the CS on page                                                               
8, line 10, which addresses  the public notification process.  He                                                               
said that he is comfortable that it has been addressed.                                                                         
                                                                                                                                
MS. MCGUIRE said that her group  has been looking at that, and it                                                               
doesn't solve the problem.                                                                                                      
                                                                                                                                
MIKE REEVES asked the status of the Hollis area mapping error.                                                                  
                                                                                                                                
ROBERT LOEFFLER,  Director, Division  of Mining, Land  and Water,                                                               
Department of Natural  Resources, Juneau, said the  CS allows DNR                                                               
to fix mapping errors.                                                                                                          
                                                                                                                                
1:59:39 PM                                                                                                                    
                                                                                                                                
LORI MASTRELLA,  Port Alexander, said  she has been  listening to                                                               
all the hearings  on SB 130, and  this is the first  time she has                                                               
been able to speak, and she  knows that there are more people who                                                               
might not get that opportunity.   She noted that there is so much                                                               
overwhelming  negative  testimony,  and the  amendments  are  not                                                               
enough.  The  bill goes too far  too fast, and a  couple of band-                                                               
aids will not make bad legislation good legislation.                                                                            
                                                                                                                                
2:00:51 PM                                                                                                                    
                                                                                                                                
MONA CHRISTIAN,  Petersburg, Alaska, said she  owns property that                                                               
is in  SB 130.   Although DNR  told her it  would get  fixed, she                                                               
said property owners elsewhere encountered  a similar problem and                                                               
it took  several years to clarify.   She noted that  SB 130's map                                                               
shows  the conveyance  of beachfront  land, and  that is  already                                                               
privately owned.   Most of  land actually being offered  is 1,200                                                               
feet off the beach in swampy habitat.   The parcel is 27 miles by                                                               
water from Petersburg,  and there are no  building codes, zoning,                                                               
utilities,  or fire  protection.   Land was  recently offered  in                                                               
that area, she said, only 13 parcels  of 40 were even bid on, and                                                               
last year  there were  28 parcels offered  by the  university and                                                               
only two were  bid on, she said.  Dumping  volumes of property on                                                               
the  market depresses  land  values and  takes  away from  future                                                               
borough selections.  Most importantly,  she said, the state needs                                                               
to responsibly fund education in Alaskan.                                                                                       
                                                                                                                                
2:03:12 PM                                                                                                                    
                                                                                                                                
CO-CHAIR RAMRAS  told her to look  at section 9 of  the CS, which                                                               
takes unorganized boroughs into account.                                                                                        
                                                                                                                                
STEVE JOHNSON,  Kiksadi Tribal Clan,  Sitka, said  that Lisianski                                                               
Peninsula  is adjacent  to a  Native  allotment and  a fish  camp                                                               
where children learn  cultural traditions.  The land  to be given                                                               
to the university has house  pits and significant cultural sites,                                                               
he added.   Mr. Johnson said Biorka Island was  owned by a famous                                                               
man in Tlingit  history, and his house is still  there.  His land                                                               
was taken  by the military  with a promise  to give it  back, and                                                               
that promise is yet to be  fulfilled.  Next to that allotment was                                                               
Mr. Johnson's great  grandfather's house, and his  grave is still                                                               
there, he said.  The Kiksadi clan is opposed to HB 130.                                                                         
                                                                                                                                
2:05:09 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SAMUELS said  that he  thought those  issues have  been                                                               
taken care of, and that it  is in the Bureau of Land Management's                                                               
hands.                                                                                                                          
                                                                                                                                
CO-CHAIR RAMRAS said that Mr. Loeffler is "nodding his head."                                                                   
                                                                                                                                
REPRESENTATIVE  WILSON  said  she is  uncomfortable  because  the                                                               
federal government moves so slowly  and cultural effects could be                                                               
destroyed  by  then.   She  asked  DNR  if  it will  wait  before                                                               
conveying the land.                                                                                                             
                                                                                                                                
MR. LOEFFLER  said the "potential conflict  for Native allotments                                                               
are for Biorka  Island.  That area has been  excluded from our TA                                                               
[the  land tentatively  approved to  the state].   If  Mr. Walton                                                               
reinstates a  portion of his  allotment which was denied  by BLM,                                                               
and they approve  it, it is automatically excluded  from our TA."                                                               
Regarding developing it  with that cloud on title,  he said, "The                                                               
answer is  we would  probably try  to work with  BLM so  they get                                                               
their answer before we convey it  to the university.  Should that                                                               
not  be   possible,  we  would   probably  convey  it   with  the                                                               
exclusion."  He said the land  is not developable until the cloud                                                               
on a  title is lifted,  which could take  three or four  years or                                                               
more.                                                                                                                           
                                                                                                                                
REPRESENTATIVE WILSON said there were a lot of ifs.                                                                             
                                                                                                                                
MR.  LOEFFLER noted  that there  is  other state  land where  the                                                               
state knows there is a Native  allotment, and DNR knows it is not                                                               
ethical to  sell land with a  cloud on the title,  so it doesn't.                                                               
"I have no  doubt that the university would be  the same way," he                                                               
said.    He  added that  if  the  state  gives  the land  to  the                                                               
university, it  will have  no affect on  whether Mr.  Walton gets                                                               
his land from BLM.                                                                                                              
                                                                                                                                
REPRESENTATIVE WILSON asked  if the university will  be under the                                                               
same rules as the state.                                                                                                        
                                                                                                                                
MR.  LOEFFLER replied,  yes, Mr.  Walton's ownership  is excluded                                                               
from the  title.  If  Mr. Walton's claim prevails,  whatever land                                                               
is included will be his.                                                                                                        
                                                                                                                                
CO-CHAIR SAMUELS  suggested the bill  could be worded to  say the                                                               
land will be conveyed to the university when the title is clear.                                                                
                                                                                                                                
MR.  LOEFFLER said,  "It wouldn't  matter  one way  or the  other                                                               
because we can't convey what we don't own."                                                                                     
                                                                                                                                
REPRESENTATIVE WILSON said she is satisfied.                                                                                    
                                                                                                                                
LEIGH  GERBER, Ketchikan  Chamber of  Commerce, said  the chamber                                                               
supports the  removal of Neets Bay  from HB 130, and  it passed a                                                               
resolution on it.                                                                                                               
                                                                                                                                
2:11:35 PM                                                                                                                    
                                                                                                                                
CHARLIE PIERCY,  Commercial Fisherman, Ketchikan, stated  that he                                                               
supports removing  Neets Bay from SB  130 because a third  of his                                                               
income  comes from  that  hatchery.   He  said  that  he has  two                                                               
children at the  University of Alaska, and, "I  would much rather                                                               
catch  a fish  and pay  their way  than have  them come  steal my                                                               
livelihood."                                                                                                                    
                                                                                                                                
DEEDIE  PEARSON, Kodiak,  said,  "I  hope you  hear  the sigh  of                                                               
relief from Kodiak to have the  rocket launch area removed."  She                                                               
said  she  came  to Kodiak  in  1941,  and  there  is a  lack  of                                                               
recreational  area  for the  people  of  Kodiak; Narrow  Cape  is                                                               
"about the  only open land  for recreating."  She  cautioned that                                                               
the committee's  decisions "have a very  long-reaching effect for                                                               
generations to  come."  She said  there is a viable  cattle ranch                                                               
at Narrow Cape.  She thanked the committee.                                                                                     
                                                                                                                                
2:13:33 PM                                                                                                                    
                                                                                                                                
JULIE HURSEY, Petersburg,  stated that she was very  glad to hear                                                               
about the exemptions in the CS,  but she is still concerned about                                                               
remote sites that were designated  as "R.U." in DNR's area plans,                                                               
including  Sanford  Cove,  Endicott  Arm,  Whitney  Island,  Reed                                                               
Island, and  Mite Cove.   It  took several  years to  develop the                                                               
plans,  and those  areas should  be  removed, and  she asked  the                                                               
committee not to rush the bill out.                                                                                             
                                                                                                                                
CO-CHAIR RAMRAS  reminded Ms. Hursey that  the resource committee                                                               
"is only the first stop," for the bill.                                                                                         
                                                                                                                                
2:15:38 PM                                                                                                                    
                                                                                                                                
MIKE LITZOW, Kodiak, said he is  part of a group of residents who                                                               
have been circulating  a petition for continued  public access to                                                               
Narrow Cape.   After Co-Chair  Ramras told him he  had succeeded,                                                               
Mr.  Litzow  said  he would  continue  circulating  the  petition                                                               
because that is what the group  told people they would do, and he                                                               
wants  to show  the local  support for  continued access  to that                                                               
parcel in the future.                                                                                                           
                                                                                                                                
DENNIS  ROGERS, Petersburg,  said he  applauds the  committee for                                                               
removing the  Warm Spring Bay  parcel.  He suggested  the process                                                               
for land selections be reviewed,  and it should have involved the                                                               
public more in the beginning.                                                                                                   
                                                                                                                                
2:18:00 PM                                                                                                                    
                                                                                                                                
BOB  LESHER, Pelican,  questioned  why this  land grant  proposal                                                               
became the funding  source for the university.  He  said that the                                                               
lack of  public hearings suggests  that another agenda  was being                                                               
served.   There are  $30 billion in  the state's  permanent fund,                                                               
and he asked why that money  wasn't considered.  He added that HB
130 is  a statewide issue, and  the solution should be  shared by                                                               
everyone.   He  stated "the  best solution  means a  contribution                                                               
from  our Permanent  Fund  Dividends.   This  income  is a  great                                                               
windfall we  did not earn.   What  better way to  demonstrate our                                                               
direct support  for such a worthy  program?  If we  do not accept                                                               
this reasoning,  why should  we direct  a land-grant  solution to                                                               
targeted regions to solve this issue?"   He said according to Mr.                                                               
Beedle, the  university would realize  $5 million  annually; "our                                                               
average permanent  fund dividends could  be reduced by  less than                                                               
one percent and would match that  amount."  He concluded that his                                                               
region wants  "the right to  determine paths  to a vision  of our                                                               
area's development."                                                                                                            
                                                                                                                                
2:19:55 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  RAMRAS   said  the   land  grant   commitment  precedes                                                               
statehood and the permanent fund.                                                                                               
                                                                                                                                
MR. LESHER asked  why that should be  set in stone.  "If  it is a                                                               
matter of money, shouldn't other sources be investigated?"                                                                      
                                                                                                                                
2:20:33 PM                                                                                                                    
                                                                                                                                
NORM  CARSON, Pelican,  said that  SB 130  is a  tragic bill;  it                                                               
takes large  parcels out  of his  community.   He said  the South                                                               
Lisianski parcel is  280 acres, and DNR lots that  have been sold                                                               
in the past  have been three acres.   He added that  he knows the                                                               
parcel well, and there are less  than eight buildable lots on it.                                                               
He suggested that either DNR  is misleading the university or the                                                               
university has plans  to sell huge parcels  that only speculators                                                               
or land barons can buy.  The  average Alaskan will not be able to                                                               
participate.   Trust and respect  for the university and  DNR has                                                               
been tarnished, he said.  More  effort should be spent looking at                                                               
other  ways  to  fund  the  university.   He  stressed  that  the                                                               
development of HB 130 should  have involved communities; instead,                                                               
people  got maps  on  a  web site  three  days  before the  first                                                               
hearing.   "This bill  is heavy-handed  and demonstrates  why the                                                               
public  rightfully  suspects   bureaucratic  institutions."    He                                                               
concluded that  the bill  should be dropped,  or else  DNR should                                                               
start over and involve the public "on day one--not at the end."                                                                 
                                                                                                                                
2:22:50 PM                                                                                                                    
                                                                                                                                
MIKE  SALLEE,   Ketchikan,  thanked  Representative   Elkins  for                                                               
getting Neets  Bay extracted from  HB 130; however, the  bill was                                                               
ill conceived  from the start.   He said  he has doubts  that the                                                               
university deserves the land especially  since federal lands will                                                               
combine to produce  close to 3/4 million acres.   He is concerned                                                               
with  the Moser  Bay parcel  which  will likely  be an  unsightly                                                               
timber harvest.  The committee  has made some valuable amendments                                                               
to HB 130, but it needs to go  back to a public process.  He said                                                               
he  spent many,  many  hours  on the  DNR  area  plans, and  that                                                               
process is  not perfect  but it  has the HB  130 process  beat by                                                               
far.                                                                                                                            
                                                                                                                                
2:24:46 PM                                                                                                                    
                                                                                                                                
MIKE  ROUND, Ketchikan,  said he  commends Representative  Elkins                                                               
for taking Neets Creek out of HB 130.                                                                                           
                                                                                                                                
KEN  DUCKETT, Executive  Director, United  Southeast Alaska  Gill                                                               
Netters, said he echoes Mike Round's comments.                                                                                  
                                                                                                                                
2:25:54 PM                                                                                                                    
                                                                                                                                
JIM  SLATER,  Pelican,  said  the   community  has  sent  several                                                               
letters, and  the majority of the  town signed a petition.   They                                                               
are  concerned "that  such a  huge  percentage of  land is  being                                                               
transferred  related to  the amount  of  existing private  land."                                                               
The  impact of  transferring 1,000  acres in  Lisianski Inlet  is                                                               
significant.  He added that Mite  Cove should be removed from the                                                               
bill and the parcel at Sunnyside should be reduced.                                                                             
                                                                                                                                
2:27:03 PM                                                                                                                    
                                                                                                                                
CHRIS HOWARD,  Pelican, said that  the university will be  a good                                                               
steward of  the Mite Cove  land.  He  said there are  two schools                                                               
that are boarded up, and HB 130 will help the economy.                                                                          
                                                                                                                                
MR.  JOHNSON  offered  a  follow-up  comment  from  his  previous                                                               
testimony.    He said  that  Biorka  Island  has high  levels  of                                                               
military contamination including PCB, lead,  and diesel.  He said                                                               
that  Middle Island  has petroglyphs  and it  is one  of the  few                                                               
areas that subsistence harvesters can go to get herring eggs.                                                                   
                                                                                                                                
MYRL THOMPSON,  Susitna Valley,  said he spoke  to people  in the                                                               
Willow area, and no one is  against land for settlement, but they                                                               
are against land going to  the timber industry which is currently                                                               
clear cutting, chipping  trees, and barging it all to  Korea.  He                                                               
said  there is  a lot  of opposition.   He  ended by  saying that                                                               
politics breaks down into two  words: poly, which means many, and                                                               
tics, which means bloodsuckers.                                                                                                 
                                                                                                                                
2:29:55 PM                                                                                                                    
                                                                                                                                
CO-CHAIR RAMRAS closed  public testimony.  He  said the committee                                                               
has heard every single person who wanted to testify today.                                                                      
                                                                                                                                
The committee took an at-ease from 2:30 p.m. to 2:34 p.m.                                                                       
                                                                                                                                
2:34:17 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SAMUELS  moved  to  adopt  Conceptual  Amendment  1  as                                                               
follows: Lisianski Peninsula and Biorka  Island lands will not be                                                               
conveyed from DNR until titles  are clear.  Hearing no objection,                                                               
Amendment 1 was adopted.                                                                                                        
                                                                                                                                
2:35:11 PM                                                                                                                    
                                                                                                                                
CO-CHAIR RAMRAS  said he would  like to offer Amendment  2, which                                                               
read [with oral changes]:                                                                                                       
                                                                                                                                
     Page 10, line 13:                                                                                                          
          Delete "and"                                                                                                          
                                                                                                                                
     Page 10, line 14, following "(4)":                                                                                         
          Insert "has determined, following notice and any                                                                      
     public  comment, that  the land  is  not considered  by                                                                    
     local businesses  to be commercially viable  for future                                                                    
     timber harvest  resource development and  that disposal                                                                    
     of  the  land  will  not  interfere  with  that  future                                                                    
     development; and                                                                                                           
               (5)"                                                                                                             
                                                                                                                                
CO-CHAIR SAMUELS objected and asked for an explanation.                                                                         
                                                                                                                                
CO-CHAIR RAMRAS  read Amendment  2, and  said that  the committee                                                               
heard concerns from  "lumber interests in the  Fairbanks area who                                                               
harvest  timber and  use it  locally,  not for  export, and  they                                                               
don't want to  be circumvented from being able to  have access to                                                               
the boreal forest and any surrounding areas."                                                                                   
                                                                                                                                
REPRESENTATIVE SEATON asked  if a local business can  it halt the                                                               
university's transaction even if  it doesn't commit to harvesting                                                               
the associated timber.                                                                                                          
                                                                                                                                
JIM  POUND,   Staff  to   Representative  Ramras,   Alaska  State                                                               
Legislature,  responded,  "What this  has  to  do with,  is  that                                                               
there's a  clause in  the bill  that allows  for land  swaps, and                                                               
there was  concern in the boreal  in particular up on  the Nenana                                                               
Ridge, an  area...that is considered relatively  prime timber for                                                               
that part of the state for the  local mills.  There was a concern                                                               
that  the  university  may  decide  to land  swap  that  out  for                                                               
something else, and  they wanted to make sure that  that could be                                                               
maintained for timber  harvest before a swap was  done with other                                                               
land, and  its just part  of the public  process--they're allowed                                                               
to chime in  and keep our mills open, unlike  what's happening in                                                               
Southeast."                                                                                                                     
                                                                                                                                
REPRESENTATIVE SEATON  asked if it  is possible to just  veto the                                                               
swap or disposal and not actually harvest the timber.                                                                           
                                                                                                                                
MR. POUND said, "As I understand  it...it has to do with swapping                                                               
land, and  part of the  public process  that they will  have, yes                                                               
they probably will  have a little more say if  that land is being                                                               
harvested for timber than other stakeholders may."                                                                              
                                                                                                                                
REPRESENTATIVE SEATON asked for Mr. Loeffler's comments.                                                                        
                                                                                                                                
MR. LOEFFLER said he has not seen the amendment.                                                                                
                                                                                                                                
2:40:10 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 2:40 p.m. to 2:44 p.m.                                                                       
                                                                                                                                
2:44:14 PM                                                                                                                    
                                                                                                                                
CO-CHAIR RAMRAS withdrew Amendment 2  and made it into Conceptual                                                               
Amendment 2,  and he said, "On  page 10, line 14,  that we insert                                                               
"has determined following notice and  any public comment that the                                                               
land is  not viable for  timber harvest  or that disposal  of the                                                               
land  will not  interfere  with that  development, and  concludes                                                               
that  it   is  in  the   best  interest  of  the   university  to                                                               
disestablish some or all of that research forest."                                                                              
                                                                                                                                
REPRESENTATIVE LEDOUX  objected for discussion purposes,  and she                                                               
asked what  the future  development is  that won't  be interfered                                                               
with.                                                                                                                           
                                                                                                                                
CO-CHAIR RAMRAS asked Mr. Pound to help him.                                                                                    
                                                                                                                                
MR.  POUND  said  he  believes  that the  word  future  is  being                                                               
deleted,  and the  development "would  reference  back to  timber                                                               
harvest development."                                                                                                           
                                                                                                                                
REPRESENTATIVE LEDOUX said, "So if  it's determined that the land                                                               
is  not  commercially viable,  and  that  its disposal  will  not                                                               
interfere with timber  harvest development, then the  land can be                                                               
sold off, is that the idea?"                                                                                                    
                                                                                                                                
MR. POUND  said yes, and  he suggested Co-Chair Ramras  leave the                                                               
word "commercially" in the amendment  because there are two types                                                               
of timber--commercial and not.                                                                                                  
                                                                                                                                
REPRESENTATIVE SEATON  suggested changing the wording  so it says                                                               
"will not interfere with commercial timber harvest."                                                                            
                                                                                                                                
REPRESENTATIVE GATTO asked if there  is an official definition of                                                               
"commercial."                                                                                                                   
                                                                                                                                
MR. POUND said Mr. Loeffler believes DNR has a definition.                                                                      
                                                                                                                                
REPRESENTATIVE GATTO  said that since Amendment  2 is conceptual,                                                               
the committee does not need the language.                                                                                       
                                                                                                                                
REPRESENTATIVE  LEDOUX  withdrew   her  objection,  and  thereby,                                                               
conceptual Amendment 2 carried.                                                                                                 
                                                                                                                                
2:50:01 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SAMUELS said Co-Chair Ramras  has done an excellent job,                                                               
with  a lot  of grace  in spite  of people  being "overwhelmingly                                                               
abusive."   He said he believes  HB 130 helps the  university and                                                               
gets more  lands into private hands.   He said lands  will remain                                                               
controversial, and gas rights will likely be argued as well.                                                                    
                                                                                                                                
2:50:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX seconded  Co-Chair Samuel's  remarks about                                                               
Co-Chair Ramras, and  she said she views HB 130  as an example of                                                               
the  public process  working.   She  said, "There  were two  very                                                               
controversial pieces of  land, the public let us  know where they                                                               
stood on that."   Everyone was heard and the  end result was that                                                               
several controversial parcels were taken out  of the bill.  It is                                                               
an example of how this legislature works, she said.                                                                             
                                                                                                                                
REPRESENTATIVE  ELKINS  said  this   CS  addresses  most  of  the                                                               
problems, and  it is  a far  better bill.   He concluded  that he                                                               
wants  to  wait  until  Monday  to  move  the  bill  because  the                                                               
committee has already  been accused of fast tracking  it, and the                                                               
committee did say it was going to move the bill Monday.                                                                         
                                                                                                                                
2:52:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON said he appreciated clearing up the right-                                                                
of-way and public notice provisions of HB 130.                                                                                  
                                                                                                                                
CO-CHAIR RAMRAS responded that he  appreciates the kind words and                                                               
he feels  bad "we  didn't have  time to give  the public  as much                                                               
time  as  they want  to  unwind  on this."    He  noted that  the                                                               
committee  had thought  it could  agree on  250,000 acres  of the                                                               
260,000-acre list.   "With Amendment  1, we have  withdrawn 9,000                                                               
acres."  He  added that since public testimony is  closed and the                                                               
public will be  able to continue commenting while the  bill is in                                                               
house finance and on the floor,  he doesn't feel the committee is                                                               
violating  the public  trust by  passing HB  130 today.   The  CS                                                               
meets  much  of  the  public  concern,  he  said,  and  he  feels                                                               
comfortable moving the bill today.                                                                                              
                                                                                                                                
2:54:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  moved to  report  CSHB  130, labeled  24-                                                               
GH1034\G,  Bullock, 3/4/05,  as  amended, out  of committee  with                                                               
individual  recommendations and  the  accompanying fiscal  notes.                                                               
Hearing no objection, CSHB 130(RES) was moved out of committee.                                                                 
                                                                                                                                

Document Name Date/Time Subjects