Legislature(2013 - 2014)BARNES 124

02/08/2013 01:00 PM House RESOURCES


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01:03:54 PM Start
01:04:18 PM HB77
03:11:03 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 77 LAND DISPOSALS/EXCHANGES; WATER RIGHTS TELECONFERENCED
Moved CSHB 77(RES) Out of Committee
         HB  77-LAND DISPOSALS/EXCHANGES; WATER RIGHTS                                                                      
                                                                                                                                
1:04:18 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  FEIGE announced  that  the only  order  of business  is                                                               
HOUSE  BILL NO.  77, "An  Act relating  to the  Alaska Land  Act,                                                               
including certain authorizations,  contracts, leases, permits, or                                                               
other   disposals  of   state  land,   resources,  property,   or                                                               
interests; relating  to authorization for  the use of  state land                                                               
by general permit;  relating to exchange of  state land; relating                                                               
to  procedures for  certain administrative  appeals and  requests                                                               
for  reconsideration to  the commissioner  of natural  resources;                                                               
relating  to the  Alaska  Water  Use Act;  and  providing for  an                                                               
effective date."                                                                                                                
                                                                                                                                
1:04:41 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
1:05:54 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FEIGE directed attention  to the committee packet, which                                                               
includes   responses  from   DNR  regarding   previous  questions                                                               
pertaining to HB  77.  In response to  Co-Chair Saddler, Co-Chair                                                               
Feige pointed out  that the committee packet does  contain a list                                                               
of   the  various   water   reservations   terminology  and   the                                                               
definitions  for them.    He then  announced  that the  committee                                                               
would entertain amendments.                                                                                                     
                                                                                                                                
1:07:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HAWKER  moved that  the committee  adopt Amendment                                                               
1, labeled 28-GH1524\A.1, Bullock, 1/31/13, which read:                                                                         
                                                                                                                                
     Page 7, line 28:                                                                                                           
          Delete "The"                                                                                                          
          Insert "Unless the remainder of the purchase                                                                      
       price is paid in full at the time of the sale, the                                                                   
     [THE]"                                                                                                                     
                                                                                                                                
     Page 8, line 4:                                                                                                            
          Delete "contracts"                                                                                                    
          Insert "a contract that provides for installment                                                                  
     payments [CONTRACTS]"                                                                                                  
                                                                                                                                
     Page 8, line 5:                                                                                                            
          Delete "for each sale"                                                                                                
          Insert "[FOR EACH SALE]"                                                                                              
                                                                                                                                
     Page 8, line 7:                                                                                                            
          Delete "contracts"                                                                                                    
          Insert "a contract [CONTRACTS]"                                                                                   
                                                                                                                                
REPRESENTATIVE TARR objected.                                                                                                   
                                                                                                                                
1:07:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HAWKER then  moved  an amendment  to Amendment  1                                                               
such that  on line  4 of  Amendment 1 "the"  would be  changed to                                                           
"a".                                                                                                                        
                                                                                                                                
REPRESENTATIVE SEATON inquired as to  the effect of the amendment                                                               
to Amendment 1.                                                                                                                 
                                                                                                                                
REPRESENTATIVE HAWKER  related that the  administration requested                                                               
the amendment  to Amendment 1 in  order that the full  context of                                                               
the language would refer to the more neutral "a contract".                                                                      
                                                                                                                                
There  being  no objection,  the  amendment  to Amendment  1  was                                                               
adopted.                                                                                                                        
                                                                                                                                
1:09:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HAWKER,  speaking  to Amendment  1,  as  amended,                                                               
explained that the  changes clarify in statute  that the purchase                                                               
price at the  time of sale may be paid  in full without utilizing                                                               
an installment contract.   Amendment 1, as  amended, improves the                                                               
quality of statute by clarifying the intent of the statutes.                                                                    
                                                                                                                                
1:11:42 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SADDLER  related  his understanding  that  the  changes                                                               
proposed  to  page 8,  line  5,  would  have  the net  effect  of                                                               
deleting the language "for each sale".                                                                                          
                                                                                                                                
REPRESENTATIVE HAWKER  agreed that  the net  effect is  to delete                                                               
the  language "for  each sale".   Therefore,  the language  would                                                               
read:   "set  out  in  contract the  period  for  the payment  of                                                               
installments".  The "for each  sale" is superfluous language that                                                               
would no  longer apply  to someone  who pays cash  up front.   In                                                               
further  response  to  Co-Chair  Saddler,  Representative  Hawker                                                               
stated  that  the amendment  is  editing  the legislation,  which                                                               
itself edits statute.                                                                                                           
                                                                                                                                
1:14:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TARR  removed  her  objection.   There  being  no                                                               
further objections, Amendment 1, as amended, was adopted.                                                                       
                                                                                                                                
1:14:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR  moved that the committee  adopt Amendment 2,                                                               
labeled 28-GH1524\A.3, Bullock, 2/7/13, which read:                                                                             
                                                                                                                                
     Page 21, lines 14 - 23:                                                                                                    
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 22, lines 11 - 19:                                                                                                    
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 23, line 2:                                                                                                           
          Delete "Section 45"                                                                                                   
          Insert "Section 43"                                                                                                   
                                                                                                                                
     Page 23, line 3:                                                                                                           
          Delete "sec. 47"                                                                                                      
          Insert "sec. 45"                                                                                                      
                                                                                                                                
REPRESENTATIVE HAWKER objected.                                                                                                 
                                                                                                                                
1:14:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR  explained that Amendment 2  ensures that the                                                               
water  rights   granted  before   the  water   reservations  have                                                               
precedence  over  those  reservations.     There  is  a  conflict                                                               
regarding how the aforementioned will  work, and thus Amendment 2                                                               
would allow individuals to apply  for water reservations.  If the                                                               
stream needs an amount of water,  that [amount of water] would be                                                               
preserved, she further explained.                                                                                               
                                                                                                                                
1:15:38 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
1:16:56 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FEIGE then inquired as  to the administration's position                                                               
on Amendment 2.                                                                                                                 
                                                                                                                                
1:17:04 PM                                                                                                                    
                                                                                                                                
WYN MENEFEE,  Chief of Operations,  Division of Mining,  Land and                                                               
Water (DMLW),  Department of  Natural Resources  (DNR), responded                                                               
that the administration  does not support the  change embodied in                                                               
Amendment 2.                                                                                                                    
                                                                                                                                
1:17:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TUCK inquired  as to  what would  happen if  that                                                               
section was deleted.                                                                                                            
                                                                                                                                
MR. MENEFEE  related his understanding  that the  proposed change                                                               
in Amendment  2 would  remove Section 40  in its  entirety, which                                                               
removed "or  a person" from  the water reservations,  and deletes                                                               
the transition language  that was a result of  having Section 40.                                                               
Amendment  2 would  return to  the original  language in  statute                                                               
such  that "or  a person"  would  be able  to apply  for a  water                                                               
reservation.   In  further response  to Representative  Tuck, Mr.                                                               
Menefee clarified that without Section 40, existing law remains.                                                                
                                                                                                                                
1:19:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HAWKER maintained his objection to Amendment 2.                                                                  
                                                                                                                                
A roll call vote was taken.   Representatives Tuck and Tarr voted                                                               
in  favor  of  the  adoption of  Amendment  2.    Representatives                                                               
Hawker,  Olson,  Seaton,  P. Wilson,  Saddler,  and  Feige  voted                                                               
against it.  Therefore, Amendment 2 failed by a vote of 2-6.                                                                    
                                                                                                                                
1:20:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR  moved that the committee  adopt Amendment 3,                                                               
labeled 28-GH1524\A.4, Bullock, 2/7/13, which read:                                                                             
                                                                                                                                
     Page 22, lines 13 - 14:                                                                                                    
          Delete "The Department of Natural Resources shall                                                                     
     return any applications and fees for applications"                                                                         
          Insert    "Notwithstanding   the    amendment   to                                                                    
           AS 46.15.145(a) by sec. 40 of this Act, an                                                                           
     application"                                                                                                               
                                                                                                                                
     Page 22, line 15:                                                                                                          
          Delete "to persons"                                                                                                   
          Insert "by a person"                                                                                                  
                                                                                                                                
     Page 22, lines 16 - 19:                                                                                                    
          Delete ". The commissioner of the Department of                                                                       
     Natural Resources  may refer  applications that  are no                                                                    
     longer  authorized  to  other  state  agencies  for  an                                                                    
     independent evaluation and  consideration of submission                                                                    
     of a  similar application  to request a  reservation to                                                                    
     that agency"                                                                                                               
          Insert "shall be considered and acted on by the                                                                       
       Department of Natural Resources under AS 46.15.145                                                                       
          until withdrawn by the applicant or a final                                                                           
     determination is made"                                                                                                     
                                                                                                                                
REPRESENTATIVE HAWKER objected.                                                                                                 
                                                                                                                                
1:20:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR explained that  Amendment 3 would allow those                                                               
who have already applied for water  reservations to be able to go                                                               
through the process  and the department would be  allowed to make                                                               
a decision.   She noted  that department  documentation specifies                                                               
that there are 35 outstanding applications.                                                                                     
                                                                                                                                
1:21:18 PM                                                                                                                    
                                                                                                                                
MR.  MENEFEE  related  that  the  administration  is  opposed  to                                                               
Amendment 3.                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON informed the  committee that he is opposing                                                               
Amendment 3 not because he opposes  the idea but because there is                                                               
a better  way in which  to address  it [via another  amendment in                                                               
the committee packet].                                                                                                          
                                                                                                                                
1:22:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK asked  if the department is  seeking a better                                                               
approach to this issue.                                                                                                         
                                                                                                                                
MR. MENEFEE answered that he  believes there is another amendment                                                               
that would address this more effectively.                                                                                       
                                                                                                                                
REPRESENTATIVE TUCK  commented that he  did not want to  pull the                                                               
rug  out from  under  those  who have  already  started a  fairly                                                               
expensive  permitting process.   Therefore,  he wanted  to ensure                                                               
that  some grandfather  rights  are provided  to  those who  have                                                               
moved through  the process  per existing  statute.   He announced                                                               
that he would support Amendment 3.                                                                                              
                                                                                                                                
1:23:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TARR expressed  hope  that should  no changes  be                                                               
made to  this, the department  will do  a good job  in contacting                                                               
[those  who  have  an  outstanding   application]  as  there  are                                                               
nongovernmental  organizations (NGO)  as well  as several  tribal                                                               
entities  who are  the  true  Alaskans that  have  been here  for                                                               
several thousand years.   She then pointed out  that the earliest                                                               
application was  in 1992, and  that there were  also applications                                                               
from 1993 and  2000.  The Eklutna Village, for  example, has been                                                               
waiting  a  decade  to  hear about  its  application,  which  she                                                               
imagined  would be  frustrating enough  not to  mention if  HB 77                                                               
passes and  the application  [is deemed  invalid].   Although the                                                               
department  has  expressed  concern   to  her  regarding  outside                                                               
organizations having influence over  Alaska projects, she refuted                                                               
that in terms of tribal entities in the state.                                                                                  
                                                                                                                                
CO-CHAIR SADDLER appreciated  Representative Tarr's comments, but                                                               
took  some umbrage  with the  term "true  Alaskans" referring  to                                                               
Alaska  Natives because  one of  the beauties  of Alaska  and its                                                               
constitution is that "we are all true Alaskans."                                                                                
                                                                                                                                
1:24:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HAWKER maintained his objection.                                                                                 
                                                                                                                                
1:24:52 PM                                                                                                                    
                                                                                                                                
A roll call vote was taken.   Representatives Tarr and Tuck voted                                                               
in  favor  of  the  adoption of  Amendment  3.    Representatives                                                               
Hawker,  Olson,  Seaton,  P. Wilson,  Saddler,  and  Feige  voted                                                               
against it.  Therefore, Amendment 3 failed by a vote of 2-6.                                                                    
                                                                                                                                
1:25:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK  moved that the committee  adopt Amendment 4,                                                               
labeled 28-GH1524\A.2, Bullock, 2/7/13, which read:                                                                             
                                                                                                                                
     Page 21, line 15:                                                                                                          
          Delete "or"                                                                                                       
                                                                                                                                
     Page 21, line 16:                                                                                                          
          Delete "[OR A PERSON]"                                                                                                
          Insert ", or a person"                                                                                            
                                                                                                                                
     Page 21, line 19:                                                                                                          
          Delete "or"                                                                                                           
          Insert ", [OR]"                                                                                                   
                                                                                                                                
     Page 21, line 19, following "times,":                                                                                      
          Insert "or indefinitely,"                                                                                         
                                                                                                                                
     Page 22, lines 11 - 19:                                                                                                    
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 23, line 2:                                                                                                           
          Delete "Section 45"                                                                                                   
          Insert "Section 44"                                                                                                   
                                                                                                                                
     Page 23, line 3:                                                                                                           
          Delete "sec. 47"                                                                                                      
          Insert "sec. 46                                                                                                       
                                                                                                                                
REPRESENTATIVE HAWKER objected.                                                                                                 
                                                                                                                                
1:26:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK said he was trying to grandfather those who                                                                 
have already applied for permits.                                                                                               
                                                                                                                                
1:26:51 PM                                                                                                                    
                                                                                                                                
MR. MENEFEE related that the administration is opposed to                                                                       
Amendment 4.                                                                                                                    
                                                                                                                                
1:26:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HAWKER maintained his objection to Amendment 4.                                                                  
                                                                                                                                
1:27:10 PM                                                                                                                    
                                                                                                                                
A roll call vote was taken.   Representatives Tuck and Tarr voted                                                               
in favor of the adoption  of Amendment 4.  Representatives Olson,                                                               
Seaton, P. Wilson,  Hawker, Saddler, and Feige  voted against it.                                                               
Therefore, Amendment 4 failed by a vote of 2-6.                                                                                 
                                                                                                                                
1:27:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR moved that the committee adopt Amendment 5,                                                                 
labeled 28-GH1524\A.5, Bullock, 2/7/13, which read:                                                                             
                                                                                                                                
     Page 6, line 24:                                                                                                           
          Delete "substantially and"                                                                                        
                                                                                                                                
     Page 9, line 31:                                                                                                           
          Delete "A substantially and"                                                                                    
          Insert "An"                                                                                                       
                                                                                                                                
     Page 11, line 5:                                                                                                           
          Delete "substantially and"                                                                                        
                                                                                                                                
     Page 11, line 25:                                                                                                          
          Delete "A substantially and"                                                                                      
          Insert "An"                                                                                                       
                                                                                                                                
     Page 18, line 6:                                                                                                           
          Delete ", or substantially and"                                                                                 
          Insert "or is"                                                                                                    
                                                                                                                                
     Page 18, line 15:                                                                                                          
          Delete "substantially and"                                                                                        
                                                                                                                                
     Page 19, line 3:                                                                                                           
          Delete "substantially and"                                                                                            
     Page 19, line 5:                                                                                                           
          Delete "substantial and"                                                                                              
                                                                                                                                
     Page 19, line 7:                                                                                                           
     Delete "substantial and"                                                                                                   
                                                                                                                                
REPRESENTATIVE HAWKER objected to Amendment 5.                                                                                  
                                                                                                                                
1:28:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TARR explained  that she  had difficulty  finding                                                               
any  definition  of  "substantially and  adversely  affected"  in                                                           
statute.   In reviewing court rules,  the aforementioned standard                                                               
is  applied in  each  individual case,  but there  is  not a  set                                                               
standard.   Deleting "substantially" leaves  "adversely affected"                                                       
as the standard,  which she characterized as clearer  in terms of                                                               
the outcome.                                                                                                                    
                                                                                                                                
1:29:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON noted  that the  forthcoming Amendment  9,                                                               
which he  will offer,  is exactly  the same as  Amendment 5.   He                                                               
explained  that  the  reason  for either  amendment  is  that  it                                                               
provides clarity.                                                                                                               
                                                                                                                                
1:30:03 PM                                                                                                                    
                                                                                                                                
MR.  MENEFEE  related  that  the  administration  is  opposed  to                                                               
Amendment 5.                                                                                                                    
                                                                                                                                
1:30:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON inquired as to  how DNR would determine the                                                               
cut-off line of "substantially and adversely affected".                                                                     
                                                                                                                                
MR. MENEFEE answered  that DNR would use  standard definitions of                                                               
"substantial", which  is defined  in Merriam-Webster's  New World                                                             
Dictionary  as  "of having  substance,  real,  actual, true,  not                                                             
imaginary, strong,  solid".  The  Black's Law  Dictionary defines                                                             
"substantial"  as  "of real  worth  and  importance belonging  to                                                               
substance,  actually existing,  real, not  seeming or  imaginary,                                                               
not elusive,  solid, true, veritable".   The  department believes                                                               
that having  the language  in the  legislation, helps  to clarify                                                               
that  when one  applies for  an appeal  that the  appealer states                                                               
that they  are adversely  affected and there  is some  backing to                                                               
the appeal because it is real, true, and supportable.                                                                           
                                                                                                                                
1:31:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  surmised  then   that  a  fisherman,  for                                                               
example, would  not have to pass  a threshold that 10  percent of                                                               
his/her  catch  is  from  a  stream  with  a  water  reservation.                                                               
Rather, the  fisherman would have  to demonstrate from  some sort                                                               
of reasonable standard that they are going to be affected.                                                                      
                                                                                                                                
MR. MENEFEE replied that Representative  Seaton is correct in the                                                               
sense that  it is a reasonable  standard in that one  can support                                                               
why he/she is adversely affected  in a substantial manner.  There                                                               
is no definition  or level in statute that specifies  a number of                                                               
reports.    Mr.  Menefee  related  that  the  department  has  to                                                               
evaluate  [claims] based  on the  information  provided for  each                                                               
case.                                                                                                                           
                                                                                                                                
1:33:06 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SADDLER stated  his  understanding that  ["substantial"                                                               
refers] to whether  [the claim] is substantive, real or  not.  He                                                               
then inquired  as to  the definition  of "aggrieved"  under which                                                               
the department is currently operating.                                                                                          
                                                                                                                                
1:33:43 PM                                                                                                                    
                                                                                                                                
ASHLEY  BROWN,  Assistant Attorney  General,  Oil,  Gas &  Mining                                                               
Section,  Natural Resources  Section,  Department  of Law  (DOL),                                                               
explained that  although "aggrieved" is also  applied and defined                                                               
on a case-by-case  basis, courts in Alaska have found  it to mean                                                               
adversely affected.                                                                                                             
                                                                                                                                
1:34:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR  inquired as to  whether it would  be helpful                                                               
to have "substantial" defined in statute.                                                                                       
                                                                                                                                
MS. BROWN  responded that  "substantial" and  "substantially" are                                                               
words of  common use  and there is  a dictionary  definition, and                                                               
therefore she  is not sure it  is necessary to define  it further                                                               
in statute.                                                                                                                     
                                                                                                                                
1:35:45 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
1:36:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON said  that  since "substantial"  is not  a                                                               
particular level,  but rather a  demonstration of  actual adverse                                                               
effect, he  will not support  Amendment 5.   Having to  show that                                                               
one is adversely  affected in a nonspecific way,  with some facts                                                               
and evidence, is a reasonable standard.                                                                                         
                                                                                                                                
1:37:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK inquired as  to whether this would streamline                                                               
the process  or would those  who have  been aggrieved be  able to                                                               
bring back  an appeal based  on the definition  of "substantially                                                               
and adversely affected."                                                                                                        
                                                                                                                                
MR.  MENEFEE, regarding  streamlining,  opined  that the  changes                                                               
suggested  in HB  77 would  provide better  substantiated appeals                                                               
that show a  direct impact that it can address.   However, if the                                                               
question is  in regard  to how Amendment  5 would  streamline the                                                               
process, he  said that  it does  not necessarily  streamline [the                                                               
process].                                                                                                                       
                                                                                                                                
1:38:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK inquired  as to why the change  if modern day                                                               
language is merely being used to achieve the same purpose.                                                                      
                                                                                                                                
MR. MENEFEE  explained that the  regular connotation of  the term                                                               
"aggrieved"  is that  one does  not like  something and  does not                                                               
necessarily encourage  the appellant to substantiate  that charge                                                               
or  specify  a  direct  relationship   of  how  he/she  might  be                                                               
affected.    However, use  of  the  language ["substantially  and                                                               
adversely  affected"] encourages  the  appellant  to bring  forth                                                               
information  illustrating  how they  are  affected.   In  further                                                               
response to  Representative Tuck, Mr. Menefee  clarified that the                                                               
language change  is an  attempt to  communicate to  the appellant                                                               
what the department  wants in order to  appropriately address the                                                               
appeal.                                                                                                                         
                                                                                                                                
CO-CHAIR SADDLER  surmised that the "substantially  and adversely                                                               
affected"  standard tries  to avoid  the situation  in which  the                                                               
only reason for  the appeal is a  "vague disquiet, disagreement."                                                               
Therefore, he announced that he would not support Amendment 5.                                                                  
                                                                                                                                
REPRESENTATIVE  TARR remarked  that "substantially  and adversely                                                               
affected" could be applied as  a fairly broad standard that would                                                               
remove access to much of the process.                                                                                           
                                                                                                                                
1:41:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HAWKER maintained his objection to Amendment 5.                                                                  
                                                                                                                                
1:41:33 PM                                                                                                                    
                                                                                                                                
A roll call  vote was taken.  Representative Tarr  voted in favor                                                               
of the adoption  of Amendment 5.   Representatives Olson, Seaton,                                                               
P. Wilson,  Hawker, Tuck,  Saddler, and  Feige voted  against it.                                                               
Therefore, Amendment 5 failed by a vote of 1-7.                                                                                 
                                                                                                                                
1:42:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK  moved that the committee  adopt Amendment 6,                                                               
labeled 28-GH1524\A.6, Bullock, 2/7/13, which read:                                                                             
                                                                                                                                
     Page 9, lines 7 - 19:                                                                                                      
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 22, line 16:                                                                                                          
          Delete "sec. 40"                                                                                                      
          Insert "sec. 39"                                                                                                      
                                                                                                                                
     Page 23, line 2:                                                                                                           
          Delete "Section 45"                                                                                                   
          Insert "Section 44"                                                                                                   
                                                                                                                                
     Page 23, line 3:                                                                                                           
          Delete "sec. 47"                                                                                                      
          Insert "sec. 46"                                                                                                      
                                                                                                                                
REPRESENTATIVE HAWKER objected.                                                                                                 
                                                                                                                                
1:42:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK  reminded the  committee that the  purpose of                                                               
HB 77 is  to streamline the permitting process.   He then pointed                                                               
out that  the language on page  9, lines 7-19, grants  a two-year                                                               
extension on  an existing lease.   Representative Tuck emphasized                                                               
the need for the leaseholder  to be responsible for keeping track                                                               
of their lease deadlines.   He opined that the two-year extension                                                               
would create more work rather than less work for the department.                                                                
                                                                                                                                
1:44:05 PM                                                                                                                    
                                                                                                                                
MR.  MENEFEE  related  that  the  administration  is  opposed  to                                                               
Amendment  6.    In  response  to  Co-Chair  Feige,  Mr.  Menefee                                                               
explained that the lease extension  is provided in cases in which                                                               
[the leaseholder] is  applying for a preference right  for a sale                                                               
or applying for  a new lease, one that  substantially changes the                                                               
purpose  or  operation  of  the   existing  lease,  on  the  same                                                               
location.  He  then pointed out that AS  38.05.102 specifies that                                                               
at the  termination of a lease,  the leaseholder may apply  for a                                                               
preference right to  sell the land to them.   Therefore, the two-                                                               
year  period  is  necessary  so   that  the  buildings  or  other                                                               
improvements to the land can remain  in a long-term lease type of                                                               
agreement,  giving long-term  site  control  during the  two-year                                                               
period.  This allows the continuation of the financing.                                                                         
                                                                                                                                
1:45:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HAWKER cautioned  the committee  to consider  the                                                               
[proposals  in  the] context  in  the  entire body  of  language.                                                               
While the legislation addresses  allowing a one-time extension of                                                               
up to  two years, the full  context of the statute  specifies "if                                                               
the director  determines it  to be  in the  best interest  of the                                                               
state and the  extension is necessary to prolong  the lease while                                                               
the  department considers  ...".    Representative Hawker  opined                                                               
that the proposal  in HB 77 creates  an administrative efficiency                                                               
that   protects  the   interest  of   the  lessee   and  lessors.                                                               
Therefore,  he expressed  strong opposition  to Amendment  6 that                                                               
would compromise the rights and privileges of either party.                                                                     
                                                                                                                                
1:46:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK surmised then that  at the termination of the                                                               
lease, the lessee can file for an extension of the lease.                                                                       
                                                                                                                                
MR. MENEFEE read AS 38.05.102, which states:                                                                                    
                                                                                                                                
     Sec. 38.05.102.  Lessee preference.    If land within a                                                                    
     leasehold  created under  AS 38.05.070  - 38.05.105  is                                                                    
     offered for sale or long-term  lease at the termination                                                                    
     of  the existing  leasehold, the  director may,  upon a                                                                    
     finding that it  is in the best interest  of the state,                                                                    
     allow the holder in good  standing of that leasehold to                                                                    
     purchase  or  lease the  land  for  its appraised  fair                                                                    
     market  value at  the  time of  the  sale or  long-term                                                                    
     lease.                                                                                                                     
                                                                                                                                
The implication is that one must  wait for the termination and it                                                               
cannot  be done  in advance.   Furthermore,  it takes  up to  two                                                               
years  to go  through another  formal best  interest decision  to                                                               
ensure whether to allow or disallow the preference right.                                                                       
                                                                                                                                
1:48:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK  inquired as  to why  the department  did not                                                               
allow the leaseholder to file two years earlier.                                                                                
                                                                                                                                
MR. MENEFEE said  that the leaseholder could be  allowed to apply                                                               
earlier,  but  pointed  out  that  Section  10(f)(3)  deals  with                                                               
substantially changing  the lease.   Sometimes it takes  the full                                                               
lease  period for  the  leaseholder to  maximize  and refine  the                                                               
operation.  He opined that  [the language in Section 10] provides                                                               
DNR the  liberty to  address the  request when it  comes in.   In                                                               
response to  Representative Tuck, Mr. Menefee  confirmed that the                                                               
consideration  process could  start prior  to the  termination of                                                               
the  lease, but  [an extension]  could not  be granted  until its                                                               
termination.    However, from  his  experience,  he related  that                                                               
there are  enough instances  in which there  is a  situation that                                                               
causes it to be dealt with at the end of the lease.                                                                             
                                                                                                                                
1:49:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK asked whether the  one-time renewal for up to                                                               
two years can  only happen once for a particular  lease.  He then                                                               
asked whether a  renewal of a lease would be  allowed for another                                                               
two-year one-time extension.                                                                                                    
                                                                                                                                
MR. MENEFEE  clarified that a  renewal is not  the same as  a re-                                                               
issue.   The lease statute  specifies that a renewal  is one-time                                                               
renewal that allows  renewal for a period not to  exceed the same                                                               
period of the original lease term.   A re-issue is a new decision                                                               
on the lease  and is a new  lease; it does not  renew or continue                                                               
the  old lease.   Therefore,  he interpreted  Section 10  to mean                                                               
that the extension could  be used at the end of  a first lease or                                                               
a re-issued lease.                                                                                                              
                                                                                                                                
1:51:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR recalled Mr.  Menefee's testimony regarding a                                                               
scenario in which  there are substantial changes at the  end of a                                                               
lease, which  seems to contradict  extending the lease.   A lease                                                               
with  substantial changes  at the  end of  it should  be reviewed                                                               
prior to applying a two-year extension to it.                                                                                   
                                                                                                                                
MR. MENEFEE  offered the following hypothetical  example in which                                                               
there  is a  lease for  commercial recreation  mining, but  it is                                                               
actually changed to a golf  course and other aspects not included                                                               
in  the  original application.    He  noted that  the  department                                                               
receives  a  development  plan   specifying  what  the  applicant                                                               
intends to  do and they  are approved per their  development plan                                                               
and whatever  the department modifies  on it.  Although  it would                                                               
be  conceivable  to  say  that  the  leaseholder  should  not  do                                                               
substantial changes,  but the leaseholder  may be in  the process                                                               
of  relating that  the  business plan  has changed.    In such  a                                                               
situation, the  public has to be  informed how the land  will now                                                               
be used and a re-issue occurs.                                                                                                  
                                                                                                                                
1:53:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR asked  whether Mr. Menefee had  an example of                                                               
a  smaller mining  operation that  became quite  large under  the                                                               
previous terms  of the lease and  the lease was extended  for two                                                               
years.                                                                                                                          
                                                                                                                                
MR.  MENEFEE said  he was  not sure  exactly what  Representative                                                               
Tarr was saying.  He clarified  that his prior example was one in                                                               
which  a  leaseholder  could  change   their  operation  and  the                                                               
department  would have  to  extend  in order  to  go through  the                                                               
process of deciding whether that was appropriate.                                                                               
                                                                                                                                
1:54:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR  pointed out  that example  was one  in which                                                               
the  change  was to  a  totally  different  business plan.    She                                                               
clarified  that she  is  referring  to an  example  in which  the                                                               
leaseholder did  not have the  funding originally  necessary, but                                                               
has  since  brought  in  investors  and  can  develop  a  broader                                                               
project.                                                                                                                        
                                                                                                                                
MR. MENEFEE replied  it is conceivable that there is  a lease for                                                               
which the plan was to develop  four structures for lodging on the                                                               
property   and  then   [upon  termination   of  the   lease]  the                                                               
leaseholder  wants to  build  a lodge  that  has other  amenities                                                               
beyond what  was originally presented to  the public.  In  such a                                                               
situation, there would be a re-issue process.                                                                                   
                                                                                                                                
1:55:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK  opined that  in situations  in which  at the                                                               
end of  a contract there  are substantial changes, those  need to                                                               
be  brought to  the  public.   He further  opined  that he  would                                                               
rather  the  legislation  be  written  such  that  the  applicant                                                               
provide his/her application two years earlier.                                                                                  
                                                                                                                                
1:56:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HAWKER maintained his objection to Amendment 6.                                                                  
                                                                                                                                
1:56:33 PM                                                                                                                    
                                                                                                                                
A roll call vote was taken.   Representatives Tarr and Tuck voted                                                               
in  favor  of  the  adoption of  Amendment  6.    Representatives                                                               
Seaton,  P.  Wilson,  Hawker, Olson,  Saddler,  and  Feige  voted                                                               
against it.  Therefore, Amendment 6 failed by a vote of 2-6.                                                                    
                                                                                                                                
1:57:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR  moved that the committee  adopt Amendment 7,                                                               
labeled 28-GH1524\A.7, Bullock, 2/7/13, which read:                                                                             
                                                                                                                                
     Page 11, lines 9 - 11:                                                                                                     
          Delete "[THE DECISION OF THE COMMISSIONER UNDER                                                                       
        THIS SUBSECTION MAY BE APPEALED TO THE SUPERIOR                                                                         
     COURT.]"                                                                                                                   
          Insert "The decision of the commissioner under                                                                        
        this subsection may be appealed to the superior                                                                         
     court."                                                                                                                    
                                                                                                                                
REPRESENTATIVE HAWKER objected.                                                                                                 
                                                                                                                                
1:57:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TARR  explained  that Amendment  7  ensures  that                                                               
there would  be access to appeal  to the Superior Court  as there                                                               
was  some confusion  with  Legislative  Legal Services  regarding                                                               
whether that right is maintained in the existing legislation.                                                                   
                                                                                                                                
1:58:07 PM                                                                                                                    
                                                                                                                                
MR.  MENEFEE  related  that  the  administration  is  opposed  to                                                               
Amendment 7.   Upon consultation with the Department  of Law, the                                                               
department was  informed that Amendment 7  would insert redundant                                                               
language because  AS 44.37.011 provides  the capability to  go to                                                               
court.   There  is  the right  to  go  to court,  but  it is  not                                                               
necessary to state it in this provision.                                                                                        
                                                                                                                                
1:58:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON said  he  is very  supportive of  ensuring                                                               
there is  an appeal  process.  If  the aforementioned  is already                                                               
provided in  statute, then he  finds the  legislation appropriate                                                               
as  it  is laid  out  for  this  matter.   Representative  Seaton                                                               
clarified  that  his vote  against  Amendment  7  is not  a  vote                                                               
against having  the commissioner's decisions appealed  because he                                                               
believes that to be crucial.                                                                                                    
                                                                                                                                
1:59:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TARR  emphasized  that in  her  discussions  with                                                               
Legislative Legal Services,  it was not interpreted  the same way                                                               
and the suggestion was to put forth this amendment.                                                                             
                                                                                                                                
2:00:31 PM                                                                                                                    
                                                                                                                                
MS. BROWN agreed  with Mr. Menefee.  She  then directed attention                                                               
to Section 31,  which amends AS 44.37.011.   She directed further                                                               
attention  to  page  18,  lines 19-22,  which  is  language  from                                                               
existing statute  that read:   "The commissioner's  decision made                                                               
upon reconsideration or the commissioner's  failure to act on the                                                               
request [PETITION] for reconsideration  is a final administrative                                                           
order  for purposes  of filing  an appeal  of the  administrative                                                               
decision to the court."                                                                                                         
                                                                                                                                
2:01:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HAWKER maintained his objection to Amendment 7.                                                                  
                                                                                                                                
2:01:25 PM                                                                                                                    
                                                                                                                                
A roll call vote was taken.   Representatives Tarr and Tuck voted                                                               
in favor of the adoption  of Amendment 7.  Representatives Olson,                                                               
Hawker, P. Wilson,  Seaton, Saddler, and Feige  voted against it.                                                               
Therefore, Amendment 7 failed by a vote of 2-6.                                                                                 
                                                                                                                                
2:02:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  moved that  the committee  adopt Amendment                                                               
8, labeled 28-GH1524\A.8, Bullock, 2/7/13, which read:                                                                          
                                                                                                                                
     Page 1, line 11:                                                                                                           
          Delete "and irreparable"                                                                                              
                                                                                                                                
REPRESENTATIVE HAWKER objected.                                                                                                 
                                                                                                                                
2:02:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON opined  that there needs to  be a balancing                                                               
act and the commissioner's decision  should be made based on harm                                                               
that  would occur  to  state  land or  resources.   However,  the                                                               
qualifier  of "irreparable"  goes far  beyond what  should be  in                                                               
statute  because   having  the   standard  of   "significant  and                                                               
irreparable  harm" would  allow  [general permits]  to be  issued                                                               
more easily.                                                                                                                    
                                                                                                                                
2:03:50 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FEIGE  inquired as to  how Amendment  8 would work  in a                                                               
situation in  which a  tree is  cut.  Such  a situation  could be                                                               
characterized as "significant harm,"  although since the tree can                                                               
grow back it is not necessarily "irreparable harm."                                                                             
                                                                                                                                
REPRESENTATIVE  SEATON related  his belief  that the  harvest for                                                               
renewable resources  would not be considered  "significant harm."                                                               
He clarified that  what he is addressing is a  situation in which                                                               
the side  consequences can be  very significant and  damage other                                                               
resources of the state.                                                                                                         
                                                                                                                                
2:05:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P.  WILSON  pointed   out  that  mining  [leases]                                                               
specify that  at the end  [of the  lease] there is  a reclamation                                                               
process in which everything is  returned to how it was initially.                                                               
Without  the  ["irreparable  harm"] language,  [the  leaseholders                                                               
would not be able to do reclamation].                                                                                           
                                                                                                                                
2:06:19 PM                                                                                                                    
                                                                                                                                
MR.  MENEFEE  related  that  the  administration  is  opposed  to                                                               
Amendment 8.  He highlighted the  need to remember that a general                                                               
permit  is not  the end  all.   A general  permit is  issued when                                                               
there is a certain activity that  can fit a certain parameter and                                                               
if the activity fits, then a  general permit is issued.  However,                                                               
if something  does not fit  under a  general permit, it  does not                                                               
prohibit the department  from authorizing it.   He clarified that                                                               
using  the "irreparable  harm" standard  does not  mean that  the                                                               
commissioner  cannot  still  make a  decision  through  delegated                                                               
authority  to authorize  the action.   Mr.  Menefee reminded  the                                                               
committee  that  there is  a  public  process through  which  the                                                               
public is informed of the type  of activity that is authorized by                                                               
the general public.   Furthermore, the public  has an opportunity                                                               
to  appeal   the  department's   decision,  if  it   so  chooses.                                                               
Therefore,  Mr.  Menefee  opined   that  [the  proposed  statute]                                                               
provides the appropriate balance.                                                                                               
                                                                                                                                
2:07:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  pointed  out the  distinction  between  a                                                               
general  permit,  which  could  be  statewide,  and  a  specific-                                                               
permitted  project.    A  specific-permitted  project  will  have                                                               
hearings,  public notice  on that  particular activity  whereas a                                                               
general  permit will  allow operations  to be  conducted anywhere                                                               
the  general  permit  covers.   Therefore,  he  opined  that  the                                                               
standards  for  a general  permit  should  be much  more  closely                                                               
aligned  with preserving  not having  significant  harm to  state                                                               
land  and resources.   Any  time those  activities [of  a general                                                               
permit] that would  be of significant harm want to  go forward in                                                               
a  specific area,  the  activity should  have  a specific  permit                                                               
because it will be very concentrated.                                                                                           
                                                                                                                                
2:09:39 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  FEIGE  requested  that  Mr. Menefee  elaborate  on  the                                                               
definition  of   a  general   permit  as   he  has   a  different                                                               
interpretation of what a general permit covers and is issued.                                                                   
                                                                                                                                
MR.  MENEFEE,  referring  to land  use  permits,  clarified  that                                                               
hearings are not held for those  and, in fact, it is not required                                                               
to  be  noticed  to  the public,  although  the  department  does                                                               
provide notice.   In terms  of Representative  Seaton's comments,                                                               
Mr. Menefee  specified that when  making a decision on  a general                                                               
permit, it is a decision saying  that in the future a certain use                                                               
will  be   allowed  so   long  as   it  follows   the  prescribed                                                               
stipulations  and such.    Each subsequent  use  of that  general                                                               
permit will  not be noticed unless  it has lasted 10  years.  The                                                               
original notice  is still  good for  those permits  continuing on                                                               
under a general permit, whereas the  notice for a land use permit                                                               
would occur at the time of  the application.  In further response                                                               
to  Co-Chair  Feige,  he  said  that  when  general  permits  are                                                               
created, the public  is informed as to how it  will be authorized                                                               
and the  general permit  is authorized to  an individual.   There                                                               
could  be  general  permits without  notification,  such  as  the                                                               
generally allowed  uses in regulation  for which  individuals are                                                               
allowed  to  perform  different  things  on  state  land  without                                                               
notifying the department.  Therefore,  there are different levels                                                               
of  general permits.    He  then informed  the  committee that  a                                                               
general permit  can be  prescribed to  a very  specific location.                                                               
For  example,  there could  be  a  general  permit for  a  stream                                                               
crossing that is allowed at a  specific area because there are no                                                               
bedding areas  for salmon.   On  the other hand,  the area  [of a                                                               
general permit] may specify a  broader area, such as Southcentral                                                               
Alaska,   because   it   typically  has   the   same   ecosystem.                                                               
Furthermore, there could  be a statewide general  permit, such as                                                               
for  the non-timber  forest products  for which  there is  enough                                                               
guidance that it does not matter  the location in the state.  Mr.                                                               
Menefee stated that there are  varying geographic references in a                                                               
general permit based on how  specific the department can get with                                                               
regard to what is being allowed.                                                                                                
                                                                                                                                
2:13:27 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SADDLER inquired as to  how the commissioner would apply                                                               
the "irreparable harm" standard and the timeline of it.                                                                         
                                                                                                                                
MR.   MENEFEE  replied   that  there   are  variable   levels  of                                                               
application.    The  definition  of  "irreparable"  for  Merriam-                                                             
Webster's  Dictionary says  "not reparable,  irremediable," which                                                             
means that  if what is  being damaged/destroyed cannot  be fixed,                                                               
but he  noted that  there is  a "reasonableness"  that has  to be                                                               
applied.                                                                                                                        
                                                                                                                                
CO-CHAIR SADDLER  remarked that  he had  some concerns  with this                                                               
[language],  but now  has  some comfort  with  the definition  of                                                               
"irremediable."                                                                                                                 
                                                                                                                                
2:14:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON opined  that  what is  being discussed  is                                                               
"significant" harm.    He said  he did not believe  that having a                                                               
timber sale  is significant  harm to  state resources.   Although                                                               
there  has  been  discussion of  a  reasonableness  standard,  he                                                               
reminded the  committee that these  are statutes that  will apply                                                               
to the current  and future commissioners.  He  reiterated that an                                                               
"irreparable harm" standard  should not be placed  in statute and                                                               
have  that type  of authority  for a  general permit.   From  his                                                               
understanding, general permits are issued  when one does not want                                                               
to go through all the permitting  on each activity but rather the                                                               
general  permit speaks  to generally  allowing  an activity  when                                                               
there  is not  significant harm.   In  conclusion, Representative                                                               
Seaton  opined   that  the  standard   of  significant   harm  is                                                               
appropriate for general permits.                                                                                                
                                                                                                                                
2:16:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HAWKER maintained his objection to Amendment 8.                                                                  
                                                                                                                                
2:16:48 PM                                                                                                                    
                                                                                                                                
A roll  call vote was  taken.  Representatives Tarr,  Seaton, and                                                               
Tuck   voted  in   favor  of   the  adoption   of  Amendment   8.                                                               
Representatives  Hawker, Olson,  P.  Wilson,  Saddler, and  Feige                                                               
voted against it.  Therefore, Amendment  8 failed by a vote of 3-                                                               
5.                                                                                                                              
                                                                                                                                
2:17:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  said  he  would not  offer  Amendment  9,                                                               
labeled  28-GH1524\A.9, Bullock,  2/7/13,  included in  committee                                                               
members' packets.                                                                                                               
                                                                                                                                
2:17:50 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 2:17 p.m. to 2:19 p.m.                                                                       
                                                                                                                                
2:19:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  moved that  the committee  adopt Amendment                                                               
10, labeled 28-GH1524\A.16, Bullock, 2/7/13, which read:                                                                        
                                                                                                                                
     Page 22, lines 13 - 19:                                                                                                    
          Delete all material and insert:                                                                                       
          "TRANSITION:    TRANSFER   OF    CERTAIN   PENDING                                                                    
     APPLICATIONS FOR RESERVED WATER. At the request of an                                                                      
         applicant whose application is pending on the                                                                          
     effective  date  of  this  Act and  who  is  no  longer                                                                    
     authorized to  reserve water under  AS 46.15.145(a), as                                                                    
     amended  by sec.  40  of this  Act,  the Department  of                                                                    
     Natural   Resources   shall    transfer   the   pending                                                                    
     application to  an entity  identified by  the applicant                                                                    
     that   is    authorized   to   reserve    water   under                                                                    
     AS 46.15.145(a),  as amended  by sec.  40 of  this Act.                                                                    
     The entity  receiving the application shall  notify the                                                                    
     Department of Natural Resources  within two years after                                                                    
     receiving  the application  as  to  whether the  entity                                                                    
     intends  to   pursue  the   reservation  of   water  as                                                                    
     requested  in the  application. If,  within two  years,                                                                    
     the Department  of Natural  Resources does  not receive                                                                    
     notice that the entity intends  to pursue the same or a                                                                    
     smaller  reservation  or  if the  entity  notifies  the                                                                    
     Department of  Natural Resources  that the  entity will                                                                    
     not  pursue the  reservation  in  the application,  the                                                                    
     Department  of  Natural  Resources shall  consider  the                                                                    
     application void and refund the  application fee to the                                                                    
     original  applicant.   If  the  entity   receiving  the                                                                    
     application  continues  to  pursue the  reservation  of                                                                    
     water as  requested in the application,  the Department                                                                    
     of  Natural Resources  shall consider  the application,                                                                    
     and,  if a  certificate of  reservation is  issued, the                                                                    
     certificate  will  carry  the   priority  date  of  the                                                                    
     original   application.  The   Department  of   Natural                                                                    
     Resources  may   not  bar  an   entity  to   which  the                                                                    
     department transfers an  application under this section                                                                    
     from  pursuing   the  reservation  of  water   that  is                                                                    
     described in the application."                                                                                             
                                                                                                                                
REPRESENTATIVE HAWKER objected.                                                                                                 
                                                                                                                                
2:19:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  moved that the committee  adopt Conceptual                                                               
Amendment 1  to Amendment  10, which  would insert  on line  4 of                                                               
Amendment 10, following "WATER."  the language "Within one year,"                                                               
and  would on  lines 19-21  of Amendment  10 delete  the language                                                               
"The Department  of Natural  Resources may not  bar an  entity to                                                               
which the department transfers an  application under this section                                                               
from pursuing the  reservation of water that is  described in the                                                               
application."   There being no objection,  Conceptual Amendment 1                                                               
to Amendment 10 was adopted.                                                                                                    
                                                                                                                                
2:21:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON explained  that  Amendment  10 allows  the                                                               
transfer  of  a permit  within  the  general parameters  of  that                                                               
permit to a qualified agency that  is established in HB 77.  This                                                               
is meant to  preserve rights and avoid harming  people already in                                                               
the [application process].                                                                                                      
                                                                                                                                
2:22:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HAWKER  pointed  out  that the  language  in  the                                                               
amendment refers to an eligible entity versus agency.                                                                           
                                                                                                                                
2:23:26 PM                                                                                                                    
                                                                                                                                
MR. MENEFEE  related the  administration's support  for Amendment                                                               
10 as amended.                                                                                                                  
                                                                                                                                
2:23:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HAWKER withdrew  his objection.   There  being no                                                               
further  objection,  Conceptual  Amendment 10,  as  amended,  was                                                               
adopted.                                                                                                                        
                                                                                                                                
2:24:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK moved that the  committee adopt Amendment 11,                                                               
labeled 28-GH1524\A.11, Bullock, 2/7/13, which read:                                                                            
                                                                                                                                
     Page 1, line 8:                                                                                                            
          Delete "a new subsection"                                                                                             
          Insert "new subsections"                                                                                              
                                                                                                                                
     Page 1, following line 13:                                                                                                 
          Insert a new subsection to read:                                                                                      
          "(d)  The commissioner may reject an application                                                                      
     for a permit for a project the commissioner determines                                                                     
      is not technically feasible, or is not economically                                                                       
     feasible."                                                                                                                 
                                                                                                                                
REPRESENTATIVE HAWKER objected.                                                                                                 
                                                                                                                                
2:24:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TUCK  explained  that  Amendment  11  intends  to                                                               
prevent  any  backlogging  of   speculative  permitting.    Prior                                                               
testimony has related that part  of the backlog can be attributed                                                               
to those who  seek permits for speculative projects  that are not                                                               
viable.   Amendment 11  attempts to  provide the  department with                                                               
the ability to filter those  out and address viable projects that                                                               
are technically and economically feasible.                                                                                      
                                                                                                                                
2:25:36 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  FEIGE inquired  as  to the  specific  types of  permits                                                               
Amendment  11  targets  because  one  seeking  potential  mineral                                                               
development first needs  to determine whether there  is a mineral                                                               
resource of  sufficient size to  economically justify a  mine and                                                               
seek investors.   Secondly,  exploration has  to occur  for which                                                               
certain permits have to be  obtained.  He asked if Representative                                                               
Tuck is  saying that  exploration permits  should not  be allowed                                                               
because a mine is not on the horizon.                                                                                           
                                                                                                                                
REPRESENTATIVE  TUCK related  his  understanding  that there  are                                                               
different levels of  exploration.  He recalled  testimony that an                                                               
Oklahoma firm  applied for and obtained  permits, which increased                                                               
the value of  its stock, all the while there  was no intention of                                                               
moving  forward and  the company  left the  state with  the mess.                                                               
Amendment  11  is  meant  to   prevent  the  aforementioned  that                                                               
procedurally  bogs  the  [division]  down  for  the  purposes  of                                                               
speculation.                                                                                                                    
                                                                                                                                
CO-CHAIR FEIGE inquired  as to how the company left  a mess if it                                                               
did not do anything.                                                                                                            
                                                                                                                                
REPRESENTATIVE  TUCK  clarified that  he  was  not the  one  that                                                               
testified about this case.                                                                                                      
                                                                                                                                
2:27:50 PM                                                                                                                    
                                                                                                                                
MR. MENEFEE  informed the committee that  the administration does                                                               
not support Amendment 11.                                                                                                       
                                                                                                                                
2:27:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  remarked he  is unsure how  the department                                                               
would  have  the ability  to  determine  whether [a  project]  is                                                               
economically feasible when one applies  for a permit, although he                                                               
agrees  that   there  are  some  permits   the  department  could                                                               
determine are  not technically feasible.   Since the  standard is                                                               
not appropriate  for the department  to make  that determination,                                                               
he expressed reluctance with [Amendment 11].                                                                                    
                                                                                                                                
2:28:59 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  FEIGE related  his  understanding  that the  department                                                               
permits activities and establishes  specific conditions for those                                                               
activities,  which   he  characterized  as  the   nature  of  the                                                               
permitting system.                                                                                                              
                                                                                                                                
MR. MENEFEE responded that is  correct, recalling that only for a                                                               
common  carrier pipeline  does the  department have  to determine                                                               
the fit,  willing, and able  ability.  For just  about everything                                                               
else,  the department  does not  perform an  economic feasibility                                                               
study to ensure the company is  sound enough to carry out what it                                                               
says it will  do.  The restrictions  are on what they  have to do                                                               
and the  conditions of the  land once the project  has concluded.                                                               
If the company does not succeed,  it is obligated to take it out,                                                               
which is why there is bonding.                                                                                                  
                                                                                                                                
2:30:01 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  FEIGE  surmised  then  that  the  bonding  requirements                                                               
provide  a level  of insurance  to the  state's interest,  if the                                                               
permittee does not  follow the conditions of  the permit, besides                                                               
the penalties of  law.  The bonding requirements  would provide a                                                               
monetary avenue to recover or finance any remediation.                                                                          
                                                                                                                                
MR. MENEFEE noted his agreement.                                                                                                
                                                                                                                                
2:30:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   TUCK   recalled   prior   testimony   that   the                                                               
remediation did extend  past the bond of  the particular project.                                                               
He noted that  he left it to the department  to determine what is                                                               
technically and economically feasible  as such definitions are in                                                               
statute  elsewhere.   He mentioned  a possible  [determination to                                                               
be]  the  certification  of  an ore  body,  which  also  provides                                                               
investors  some  level  of  confidence   with  regard  to  moving                                                               
forward.   He then  offered that [the  feasibility of  a project]                                                               
could be determined  by whether there is  financial backing, such                                                               
as  investors that  have certified  [the  project] through  their                                                               
process.   Again, he  reiterated his  desire to  leave it  to the                                                               
department  to determine  that and  provide the  ability for  the                                                               
department to  reject frivolous permits.   He then  asked whether                                                               
Amendment  11 provides  something  the department  would use  and                                                               
would view as helping its procedures.                                                                                           
                                                                                                                                
MR. MENEFEE  characterized [the proposal  in Amendment 11]  as an                                                               
encumbrance because a determination as  to whether an ore body is                                                               
good   enough   takes   exploration   and   sometimes   extensive                                                               
exploration.     Mr.  Menefee  emphasized  that   the  department                                                               
authorizes  more  than just  mining  activities.   Therefore,  if                                                               
Amendment 11  became part of  statute, the department  would have                                                               
to determine,  for example, if  a proposed lodge  is economically                                                               
feasible  that  it will  succeed.    He  said that  AS  38.05.020                                                               
governs  practically everything  the  department  does, and  thus                                                               
would  increase  the   department's  workload,  require  advanced                                                               
expertise, and  it may not  be possible  if some people  were not                                                               
able  to  go  out  and  do some  things  under  authorization  to                                                               
determine whether they can succeed or not.                                                                                      
                                                                                                                                
2:32:35 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FEIGE commented  that the act of  obtaining permits does                                                               
require investment  on the part  of the applicant and  has value.                                                               
The fact  that the stock price  increases as a reflection  of the                                                               
value  is  not  necessarily  the committee's  concern.    As  Mr.                                                               
Menefee  stated,  it seems  impossible  to  determine whether  [a                                                               
project] would payout or not.                                                                                                   
                                                                                                                                
2:33:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK restated  that the intent of  Amendment 11 is                                                               
to  streamline the  system and  avoid cheating  the system.   The                                                               
hope was to  free resources in order to help  those projects that                                                               
really  are  viable.    Therefore,   based  on  the  department's                                                               
comments, Representative Tuck withdrew Amendment 11.                                                                            
                                                                                                                                
2:34:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK moved that the  committee adopt Amendment 12,                                                               
labeled 28-GH1524\A.12, Bullock, 2/7/13, which read:                                                                            
                                                                                                                                
     Page 1, line 11:                                                                                                           
          Delete "and"                                                                                                          
          Insert "or"                                                                                                           
                                                                                                                                
REPRESENTATIVE HAWKER objected.                                                                                                 
                                                                                                                                
2:34:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TUCK  explained  that Amendment  12  attempts  to                                                               
ensure that  under general  permitting, the  department continues                                                               
to  consider  significant  harm  and   is  allowed  to  keep  the                                                               
irreparable harm [requirement] as well.                                                                                         
                                                                                                                                
2:35:05 PM                                                                                                                    
                                                                                                                                
MR. MENEFEE  stated that the administration  is opposed Amendment                                                               
12.   The existing  language of  HB 77  specifies that  a general                                                               
permit would not be issued for  an activity that resulted in both                                                               
"significant  and irreparable  harm."   Changing the  language to                                                               
"significant  or irreparable  harm"  would mean  that [a  general                                                               
permit  could   not  be  issued]   for  an  activity   if  either                                                               
significant harm  or irreparable  harm.  The  department believes                                                               
the proposed threshold in HB 77 is appropriate.                                                                                 
                                                                                                                                
2:35:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK  expressed the need  to ensure that  there is                                                               
concern about significant  harm as well as irreparable  harm.  He                                                               
further expressed  the need to  provide protection at  the lowest                                                               
common denominator.                                                                                                             
                                                                                                                                
2:36:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HAWKER maintained his objection to Amendment 12.                                                                 
                                                                                                                                
2:36:22 PM                                                                                                                    
                                                                                                                                
A roll  call vote was  taken.  Representatives Seaton,  Tarr, and                                                               
Tuck  voted   in  favor   of  the   adoption  of   Amendment  12.                                                               
Representatives  Olson, P.  Wilson,  Hawker,  Saddler, and  Feige                                                               
voted against  it.  Therefore, Amendment  12 failed by a  vote of                                                               
3-5.                                                                                                                            
                                                                                                                                
2:37:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK moved that the  committee adopt Amendment 13,                                                               
labeled 28-GH1524\A.13, Bullock, 2/7/13, which read:                                                                            
                                                                                                                                
     Page 1, line 6, following "Act;":                                                                                        
          Insert "requiring the commissioner of fish and                                                                      
     game to apply for the reservation of sufficient water                                                                    
       to maintain a specified instream flow or level of                                                                      
     water in certain rivers, lakes, and streams;"                                                                            
                                                                                                                                
     Page 1, following line 7:                                                                                                  
          Insert a new bill section to read:                                                                                    
       "* Section 1. AS 16.05.871 is amended by adding a                                                                    
     new subsection to read:                                                                                                    
          (e) The commissioner shall apply for the                                                                              
     reservation of sufficient water under AS 46.15.145 to                                                                      
      maintain a specified instream flow or level of water                                                                      
      in the rivers, lakes, and streams that are specified                                                                      
     by the commissioner under (a) of this section."                                                                            
                                                                                                                                
     Page 1, line 8:                                                                                                            
          Delete "Section 1"                                                                                                  
          Insert "Sec. 2"                                                                                                     
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 22, line 16:                                                                                                          
          Delete "sec. 40"                                                                                                      
          Insert "sec. 41"                                                                                                      
                                                                                                                                
     Page 23, line 2:                                                                                                           
          Delete "Section 45"                                                                                                   
          Insert "Section 46"                                                                                                   
                                                                                                                                
     Page 23, line 3:                                                                                                           
          Delete "sec. 47"                                                                                                      
          Insert "sec. 48"                                                                                                      
                                                                                                                                
REPRESENTATIVE HAWKER objected.                                                                                                 
                                                                                                                                
2:37:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK explained that Amendment  13 is an attempt to                                                               
protect the state's anadromous fish  regardless of whether anyone                                                               
applies to  do so per Section  40.  He related  his understanding                                                               
that the Alaska  Department of Fish & Game publishes  a book that                                                               
lists  the  streams in  Alaska.    Amendment  13 would  have  the                                                               
department request water reservations for  those fish that may be                                                               
impacted on those streams.                                                                                                      
                                                                                                                                
2:39:46 PM                                                                                                                    
                                                                                                                                
CHARLES  SWANTON,  Director,  Division   of  Sport  Fish,  Alaska                                                               
Department  of  Fish  & Game  (ADF&G),  said  the  administration                                                               
opposes Amendment 13.  "The  Anadromous Waters Catalog" currently                                                               
holds  17,897  individual records  of  anadromous  waters in  the                                                               
state, including 16,200-plus rivers,  1,500 lakes, and 69 smaller                                                               
water bodies.   The aforementioned represent  over 75,000 million                                                               
miles of  stream reaches.  Each  year about 322 new  listings are                                                               
added to  the catalog.   Mr. Swanton stated that  this particular                                                               
request would represent about 16,000-82,000 water reservations.                                                                 
                                                                                                                                
2:40:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  posed a scenario in  which someone applies                                                               
for  temporary water  use or  water  extraction at  a level  that                                                               
would  be  detrimental to  the  fish  in  the stream,  and  asked                                                               
whether ADF&G would  receive notice of that.   Furthermore, would                                                               
ADF&G apply for  a water reservation on  that particular project,                                                               
he asked.  He then requested  that the DMLW review the priorities                                                               
for water reservations and rights.                                                                                              
                                                                                                                                
MR. SWANTON  said that the  question would better be  answered by                                                               
the Division of Habitat.   However, he offered, "In essence, when                                                               
those sorts of activities are  taking place with regards to water                                                               
a permit  water extraction  of those sorts  of things  are issued                                                               
taking  into consideration,  are those  water needs  of the  fish                                                               
that  are in  that particular  water body.   So  that's how  it's                                                               
handled  on a  more  short-term basis."    The water  reservation                                                               
aspect is  a longer  process that involves  about three  years of                                                               
data collection.                                                                                                                
                                                                                                                                
2:43:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON restated  his  question regarding  whether                                                               
there is a priority time  that a water withdrawal would supersede                                                               
the necessity for a water reservation for fish.                                                                                 
                                                                                                                                
MR.   MENEFEE  clarified   that   for  a   temporary  water   use                                                               
authorization  or temporary  water right,  the department  has to                                                               
obtain   comments   from    the   Department   of   Environmental                                                               
Conservation (DEC) and ADF&G as  well as other governing agencies                                                               
in  order to  understand the  impact of  the temporary  water use                                                               
withdrawal on fish  habitat.  Basically, the  temporary water use                                                               
authorizations  would be  issued  with restrictions  in order  to                                                               
protect that.   Therefore, if the  fish need a certain  amount of                                                               
water, there  would be restrictions  to ensure that no  more than                                                               
that amount of water necessary for  the fish is taken.  Likewise,                                                               
when granting a  water right, statute requires  the department to                                                               
consider  the  effect  on  fish and  game  resources  and  public                                                               
recreational opportunities.   Mr. Menefee confirmed  that a water                                                               
reservation  is a  tool  to  ensure that  there  is a  sufficient                                                               
quantity of  water, but individually  under the water  rights and                                                               
the  temporary water  use authorizations  the same  thing can  be                                                               
addressed individually as water is taken from the source.                                                                       
                                                                                                                                
2:45:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TARR, referring  to page  2, Scenario  2, of  Mr.                                                               
Menefee's letter to the committee  dated February 7, 2013, opined                                                               
that the  response seems to  contradict his testimony  that water                                                               
rights have to  determine the effect with ADF&G  and other public                                                               
uses.                                                                                                                           
                                                                                                                                
MR. MENEFEE  specified that a  water reservation  is a form  of a                                                               
water right,  and therefore both  go under the doctrine  of prior                                                               
appropriation.   The doctrine of  prior appropriation  means that                                                               
the first thing appropriated has  the greater right, and thus the                                                               
first in line has the better right.   If a water right in a water                                                               
body is  authorized and  later someone comes  forth with  a water                                                               
right  application,  the  division  could only  issue  the  water                                                               
reservation up  to the remainder  of the water that  exists after                                                               
the water  right is  fulfilled.  Although  the division  does not                                                               
issue  by percentages,  he offered  that  if 100  percent of  the                                                               
water  body is  flowing water  and  then an  initial water  right                                                               
comes  in for  30 percent  of  that water,  a request  for an  80                                                               
percent water reservation  could not be issued;  however, a water                                                               
reservation of  only 70 percent  could be issued because  that is                                                               
all  that is  remaining in  that water  body.   Per statute,  the                                                               
prior  existing  rights   have  to  be  addressed   and  a  water                                                               
reservation cannot obviate those prior rights.                                                                                  
                                                                                                                                
2:47:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR then inquired as  to how the department would                                                               
address a  scenario in  which a  previously existing  water right                                                               
would  not afford  the issuance  of  a water  reservation in  the                                                               
amount  necessary to  preserve  the needed  instream  flow for  a                                                               
healthy salmon run.                                                                                                             
                                                                                                                                
MR.  MENEFEE answered  that  DMLW  would seek  to  issue a  water                                                               
reservation in  the greatest amount possible  of the appropriable                                                               
water left.   Still, a  prior existing right cannot  be violated.                                                               
He  added that  his staff  was hard  pressed to  recall even  one                                                               
instance in  which DMLW has had  to reduce the amount  of a water                                                               
reservation  or a  temporary water  use authorization  by another                                                               
right.  Typically,  with Alaska waters, both  a water reservation                                                               
and a water right and a  temporary water use authorization can be                                                               
fulfilled.                                                                                                                      
                                                                                                                                
2:49:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR asked whether  any of the pending unprocessed                                                               
water  reservations  would  fall  into  the  category  of  having                                                               
existing  rights  that  are  in  conflict  with  the  reservation                                                               
applications.                                                                                                                   
                                                                                                                                
MR. MENEFEE  replied that he  did not  know, but said  DMLW could                                                               
research that.   Such information  would require  reviewing every                                                               
application in terms  of how much was requested  and determine if                                                               
there  was another  water right.   He  then posed  a scenario  in                                                               
which a water reservation application  has not been certificated.                                                               
If there was an application for  a water right in that same water                                                               
body,  DMLW would  have to  evaluate whether  [the pending  water                                                               
reservation  application]  would  be  in conflict  with  a  later                                                               
application for a water right.                                                                                                  
                                                                                                                                
2:51:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TUCK surmised  that  under  the existing  process                                                               
anyone can  file a  water right  or a  water reservation  for any                                                               
stream.  If someone files for  a water right, a water reservation                                                               
of  any sort  is  not  activated unless  a  government entity  or                                                               
division or  a person applies  for that water reservation.   Once                                                               
the water  reservation is set, it  holds a right that  the person                                                               
is  not  using him/herself  but  rather  is  there for  the  four                                                               
specified  purposes   [in  AS  46.15.145(a)(1)-(4)].     He  then                                                               
surmised that a  water reservation would not  preempt an existing                                                               
water right, and asked if that is correct.                                                                                      
                                                                                                                                
MR. MENEFEE replied yes.                                                                                                        
                                                                                                                                
2:52:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK then explained  that Amendment 13 attempts to                                                               
have a  method to consider how  much water should be  present for                                                               
fish.   He clarified  that he  did not mean  for [the  passage of                                                               
Amendment 13]  to result  in ADF&G  having to  apply for  a water                                                               
reservation  for every  stream in  the state.   He  expressed the                                                               
need to  have a  mechanism by  which ADF&G can  file for  a water                                                               
reservation when a water right is  filed for those streams in the                                                               
catalog.  He  acknowledged that Amendment 13  does not accomplish                                                               
all that, but he expressed interest in finding a solution.                                                                      
                                                                                                                                
2:54:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HAWKER maintained his objection to Amendment 13.                                                                 
                                                                                                                                
2:54:29 PM                                                                                                                    
                                                                                                                                
A roll call vote was taken.   Representatives Tarr and Tuck voted                                                               
in  favor  of the  adoption  of  Amendment 13.    Representatives                                                               
Seaton,  P.  Wilson,  Hawker, Olson,  Saddler,  and  Feige  voted                                                               
against it.  Therefore, Amendment 13 failed by a vote of 2-6.                                                                   
                                                                                                                                
2:55:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK moved that the  committee adopt Amendment 14,                                                               
labeled 28-GH1524\A.14, Bullock, 2/7/13, which read:                                                                            
                                                                                                                                
     Page 21, line 15:                                                                                                          
          Delete "or"                                                                                                       
                                                                                                                                
     Page 21, line 16, following "States":                                                                                      
          Insert ", or a Native entity in the state that is                                                                 
     on the list of Indian  entities that are recognized and                                                                
     eligible  to receive  services from  the United  States                                                                
     Bureau of  Indian Affairs, Department of  the Interior,                                                                
     published in  67 Federal Register 46328-01  on July 12,                                                                
     2002"                                                                                                                
                                                                                                                                
REPRESENTATIVE HAWKER objected.                                                                                                 
                                                                                                                                
2:55:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TUCK explained  that  Amendment  14 would  insert                                                               
language  allowing   a  Native  entity   to  file  for   a  water                                                               
reservation.                                                                                                                    
                                                                                                                                
2:56:11 PM                                                                                                                    
                                                                                                                                
MR. MENEFEE related the  administration's opposition to Amendment                                                               
14.  He informed the committee  that there is a general policy in                                                               
terms of how tribal entities  and federally recognized tribes are                                                               
treated throughout statute;  treating those groups inconsistently                                                               
in statute  would create a  challenge.   Should such a  change be                                                               
deemed  necessary,  it  should   be  a  general  across-the-board                                                               
change.    Furthermore,  because   of  the  sovereign  status  of                                                               
federally recognized tribes, sovereign  immunity and other issues                                                               
that are  quite complex  have to be  addressed when  dealing with                                                               
authorizations.   Therefore, the administration does  not believe                                                               
the change embodied in Amendment 14 is appropriate.                                                                             
                                                                                                                                
2:58:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  asked whether  the department  considers a                                                               
tribe "a person."                                                                                                               
                                                                                                                                
MR.  MENEFEE  answered  that  would  be  the  definition  because                                                               
anything  that  is not  a  federal  agency,  a state  agency,  or                                                               
political subdivision of  the state would fall  under "a person."                                                               
Therefore,  "a  person"  would include  Native  corporations  and                                                               
federally recognized tribes.                                                                                                    
                                                                                                                                
2:59:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK  stated that  currently, Native  entities can                                                               
file.   Of the list  of 35 [applicants]  that have not  had their                                                               
permits passed, some  are from Native entities.  He  asked if the                                                               
reason some of these permits are  not passed is because there are                                                               
other locations [in statute] where  the Native entities cannot do                                                               
it.                                                                                                                             
                                                                                                                                
MR. MENEFEE  replied, "No, that  is not  the reason."   There are                                                               
438  water  reservation applications  and  the  division has  had                                                               
challenges with  staffing to address  those.  Currently,  DMLW is                                                               
in  the   process  of   ramping  up   the  processing   of  water                                                               
reservations because it is part of  the backlog.  In the last two                                                               
years,  32 of  the 62  existing water  reservations in  the state                                                               
were authorized.                                                                                                                
                                                                                                                                
3:00:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TUCK  said  Amendment 14  would  basically  allow                                                               
[DMLW]  to do  what it  is  already doing  and he  would like  to                                                               
provide Native  Alaskans the opportunity to  preserve their areas                                                               
and  be  able  to  have  the opportunity  to  file  for  a  water                                                               
reservation.                                                                                                                    
                                                                                                                                
3:01:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR  pointed out that  eliminating 35 of  the 438                                                               
water reservation applicants  amounts to less than  10 percent of                                                               
the  total.    She  then  questioned whether  it  would  be  more                                                               
effective to  review the 90  percent of  outstanding applications                                                               
if part of the issue is efficiency of the process.                                                                              
                                                                                                                                
MR.  MENEFEE  clarified that  the  other  [403] applications  for                                                               
water reservations  are from agencies, which  typically come from                                                               
the Bureau  of Land  Management (BLM), the  U.S. Fish  & Wildlife                                                               
Service, and [the  Alaska Department of Fish & Game].   These are                                                               
applications that do not fall under the "person" category.                                                                      
                                                                                                                                
3:01:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR  questioned then  why something is  not being                                                               
done  to   make  it  more  efficient   with  those  applications.                                                               
Specifically, she inquired as to  whether there are opportunities                                                               
that could make it a more efficient process.                                                                                    
                                                                                                                                
MR.  MENEFEE related  his belief  that if  there is  supportable,                                                               
sound information from which the  division can make the decision,                                                               
the division can go through  a water reservation decision just as                                                               
it is  explained in statute.   The division has not  been able to                                                               
"shave  off" the  procedure [specified  in statute]  because they                                                               
are good  considerations for a  water reservation.  What  is laid                                                               
out  in  statute requires  a  lot  of  data gathering,  which  is                                                               
occurring and  as time  passes more  of those  [water reservation                                                               
applications] will be processed.                                                                                                
                                                                                                                                
3:02:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  expressed concern  with the absence  of [a                                                               
reference to a "Native entity"].   He reminded the committee that                                                               
under federal law there are  subsistence rights for fish and game                                                               
and there  is nothing  more critical  to fishing  activities than                                                               
having adequate water  preserved for that.   He expressed further                                                               
concern that this  is almost requiring federal  overreach to take                                                               
over water reservations in streams  because Native tribes are not                                                               
being  allowed to  have the  basis of  that subsistence  right to                                                               
preserve or  even apply for  water reservations.   Representative                                                               
Seaton  informed  the  committee  that  he  would  be  supporting                                                               
Amendment 14, although not particularly for its exact language.                                                                 
                                                                                                                                
3:05:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  OLSON  asked  whether   the  committee  has  been                                                               
contacted regarding Amendment 14.                                                                                               
                                                                                                                                
CO-CHAIR FEIGE responded that he did not believe so.                                                                            
                                                                                                                                
REPRESENTATIVE  OLSON  said  he  has  not  been  contacted  about                                                               
Amendment 14.                                                                                                                   
                                                                                                                                
CO-CHAIR FEIGE  said he has not  either, and then inquired  as to                                                               
whether other members have been contacted about Amendment 14.                                                                   
                                                                                                                                
REPRESENTATIVE HAWKER said he has not either.                                                                                   
                                                                                                                                
REPRESENTATIVE  TARR  interjected  that she  has  been  contacted                                                               
about Amendment 14.                                                                                                             
                                                                                                                                
3:05:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HAWKER reminded the  committee that the underlying                                                               
proposal of  HB 77 proposes  to limit the applications  for these                                                               
reservations  to  political  subdivisions  of the  state  or  the                                                               
United States.   He expressed  concern that Amendment  14 creates                                                               
preferential  rights  amongst  Alaskan citizens  as  individuals,                                                               
which  is territory  that  should not  be  entered into  lightly.                                                               
There has  been a long-term  debate in Alaska  regarding granting                                                               
statutorily preferential rights amongst  individual Alaskans.  He                                                               
said he is  not willing to go into this  matter with an amendment                                                               
to  a  larger   piece  of  legislation,  as   the  matter  merits                                                               
consideration on its own.                                                                                                       
                                                                                                                                
3:06:59 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FEIGE  presumed that tribal  entities that  exist within                                                               
the  state still  have the  ability to  request through  DNR that                                                               
governmental divisions request the reservations.                                                                                
                                                                                                                                
MR. MENEFEE noted his agreement.                                                                                                
                                                                                                                                
3:07:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  agreed,  but  stressed  that  the  tribal                                                               
entities  will not  request [a  water reservation]  from a  state                                                               
agency but rather a federal agency,  which is permitted in HB 77.                                                               
There  are federal  guarantees of  subsistence rights,  he noted.                                                               
This  legislation  removes tribal  entities  from  being able  to                                                               
apply for water  reservations and Amendment 14 does  not add them                                                               
in but rather ensures they are not removed.                                                                                     
                                                                                                                                
3:08:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TUCK reiterated  that  Amendment  14 attempts  to                                                               
allow   Native  entities   to  continue   to   apply  for   water                                                               
reservations.                                                                                                                   
                                                                                                                                
3:09:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HAWKER maintained his objection to Amendment 14.                                                                 
                                                                                                                                
3:09:11 PM                                                                                                                    
                                                                                                                                
A  roll call  vote was  taken.   Representatives Tarr,  Tuck, and                                                               
Seaton  voted  in   favor  of  the  adoption   of  Amendment  14.                                                               
Representatives Hawker,  Olson, Saddler, and Feige  voted against                                                               
it.  Therefore, Amendment 14 failed by a vote of 3-4.                                                                           
                                                                                                                                
3:10:06 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FEIGE, upon determining no one wished to testify,                                                                      
closed public testimony.                                                                                                        
                                                                                                                                
3:10:37 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SADDLER moved  to  report  HB 77,  as  amended, out  of                                                               
committee  with individual  recommendations and  the accompanying                                                               
zero fiscal  notes.  There  being no objection, CSHB  77(RES) was                                                               
reported from the House Resources Standing Committee.                                                                           

Document Name Date/Time Subjects
HB 77 Non-Governmental water reservation applications.pdf HRES 2/8/2013 1:00:00 PM
HB 77
HB 77 Water Authorization Process.pdf HRES 2/8/2013 1:00:00 PM
HB 77
HB77 DNR Responses 2.7.13.pdf HRES 2/8/2013 1:00:00 PM
HB 77
HB 77 Amendment Packet 2.8.13.pdf HRES 2/8/2013 1:00:00 PM
HB 77
HB 77 Amend - Seaton A.16.pdf HRES 2/8/2013 1:00:00 PM
HB 77
HB 77 SEACC Fraser Inst. Summary 2.7.13.pdf HRES 2/8/2013 1:00:00 PM
HB 77
HB77 & SB26 KBCS Comments.pdf HRES 2/8/2013 1:00:00 PM
HB 77
SB 26
HB 77 Weissler 2.7.13.pdf HRES 2/8/2013 1:00:00 PM
HB 77