Legislature(2013 - 2014)BARNES 124

02/27/2013 01:00 PM House RESOURCES


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HJR 6 BLM LEGACY OIL WELL CLEAN UP/AWARENESS TELECONFERENCED
Moved Out of Committee
*+ HJR 7 ENDORSING ANWR LEASING TELECONFERENCED
Moved CSHJR 7(RES) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 99 EXTEND ALASKA MINERALS COMMISSION TELECONFERENCED
Moved CSHB 99(RES) Out of Committee
                 HJR  7-ENDORSING ANWR LEASING                                                                              
                                                                                                                                
2:24:36 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SADDLER  announced that the next order  of business would                                                              
be  HOUSE  JOINT  RESOLUTION  NO.  7,  Urging  the  United  States                                                              
Congress  to pass legislation  to  open the coastal  plain  of the                                                              
Arctic  National  Wildlife  Refuge  to oil  and  gas  exploration,                                                              
development,   and   production;   relating   to   oil   and   gas                                                              
exploration,   development,   production,   and   royalties;   and                                                              
relating to renewable and alternative energy technologies.                                                                      
                                                                                                                                
2:27:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LYNN GATTIS,  Alaska  State Legislature,  speaking                                                              
as  the  prime  sponsor,  informed   the  committee  the  proposed                                                              
committee    substitute    (CS)   provides    minor    grammatical                                                              
modifications to HJR 7.                                                                                                         
                                                                                                                                
2:27:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   SEATON  moved   to  adopt  Version   28-LS0399\N,                                                              
Nauman,  2/26/13,  as  the  working  document.    There  being  no                                                              
objection, Version N was before the committee.                                                                                  
                                                                                                                                
REPRESENTATIVE  GATTIS stated that  HJR 7  urges Congress  to pass                                                              
legislation  to open  the  coastal plain  of  the Arctic  National                                                              
Wildlife Refuge  (ANWR) to oil  and gas exploration,  development,                                                              
and production.   She  expressed frustration  that "our  hands are                                                              
tied" with  respect to oil exploration  in the 1002 area  of ANWR,                                                              
even though geological  indicators predict that the  area contains                                                              
8 percent  of the nation's undiscovered  oil.  Clearly,  ANWR is a                                                              
key  component   of  the   nation's  effort   to  achieve   energy                                                              
independence,  when combined  with other  alternatives.   Further,                                                              
oil development  in ANWR  will garner  great financial  benefit to                                                              
Alaska.     Representative  Gattis  recalled   legislation  before                                                              
Congress in 1995  and 2002 that could have led  to oil production.                                                              
She restated the  potential for economic benefit to  the state and                                                              
the nation, and urged that the committee support the resolution.                                                                
                                                                                                                                
2:31:09 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SADDLER opened public testimony on HJR 7.                                                                              
                                                                                                                                
2:31:54 PM                                                                                                                    
                                                                                                                                
DANIEL LUM  informed the  committee he is  a former  tour operator                                                              
and author.   Mr.  Lum said  as an  Alaskan it  is frustrating  to                                                              
hear arguments about  ANWR raised by those who do  not live on the                                                              
North   Slope.     While   scientists  and   politicians   debate,                                                              
subsistence users see  that climate change is real  because of the                                                              
absence of  ice packs,  and the melting  permafrost on  the tundra                                                              
and  beneath  the  lakes.   As  the  Arctic  climate  shifts,  the                                                              
effects  are  coastal erosion,  the  decline  of land  and  marine                                                              
species,  and  the  arrival  of  invasive  bird  species:    small                                                              
changes  in  global  climate  bring  massive  changes  to  plants,                                                              
fungus, and  lichen on the  North Slope.   Mr. Lum  explained that                                                              
with  change, certain  areas become  increasingly more  important,                                                              
such  as  the biological  stronghold  of  the  North Slope  -  the                                                              
coastal plain  of ANWR.  When  the refuge was created,  the intent                                                              
was  to  establish  a wilderness  refuge  for  wildlife,  however,                                                              
industry has  targeted the biological  heart of the  refuge, which                                                              
is the  calving grounds  of the Porcupine  Caribou Herd  and where                                                              
polar bears  den.   He urged  that the  committee not support  the                                                              
resolution.                                                                                                                     
                                                                                                                                
2:34:12 PM                                                                                                                    
                                                                                                                                
PAMELA  A.  MILLER,  Arctic  Program   Director,  Northern  Alaska                                                              
Environmental Center  (NAEC), stated that NAEC and  fourteen other                                                              
environmental  organizations in  Alaska  - representing  residents                                                              
from Kaktovik to  Juneau - issued written opposition  to HJR 7 and                                                              
in support  for protecting  ANWR.  She  pointed out that  the area                                                              
is  a  refuge  originally  established  by  President  Eisenhower,                                                              
including  the coastal  plain.    It was  expanded  by the  Alaska                                                              
National  Interest  Lands  Conservation   Act  (ANILCA)  and  work                                                              
continues  to permanently  protect the  coastal plain  area.   She                                                              
said  the organizations  opposing the  resolution identified  four                                                              
major reasons for  continued protection of the refuge:   oil, gas,                                                              
and  wilderness are  not  compatible; the  ANWR  coastal range  is                                                              
important  ecologically  and  culturally;   tourism  is  vital  to                                                              
Alaska's  economy  and  business;  and alternative  ways  to  meet                                                              
energy needs  must be pursued.   Finally, in response  to previous                                                              
testimony,  she said  the proposed  federal legislation  sponsored                                                              
by  U.S. Representative  Don Young  will open  the entire  coastal                                                              
plain  area  to  oil  and gas,  although  according  to  the  U.S.                                                              
Geological  Survey,  the  oil  is   located  in  small,  scattered                                                              
pockets.  In comparison,  Prudhoe Bay is one large  oilfield.  Her                                                              
personal experience  is that ANWR is a vital  and remarkable area,                                                              
and an asset to Alaska for future generations.                                                                                  
                                                                                                                                
REPRESENTATIVE  JOHNSON   requested  a  copy  of   the  letter  of                                                              
opposition and a list of the signatory organizations.                                                                           
                                                                                                                                
MS. MILLER will provide a copy.                                                                                                 
                                                                                                                                
2:38:23 PM                                                                                                                    
                                                                                                                                
PRINCESS LUCAJ,  Executive Director, Gwich'in  Steering Committee,                                                              
said  her grandparents  are of  Arctic Village  and expressed  her                                                              
appreciation  to  her elders  and  ancestors  who spoke  with  one                                                              
voice to support  protection of the refuge and  its coastal plain.                                                              
She  recalled  her grandmother  saying  her  grandmother's  elders                                                              
predicted changes  in the  weather, the effects  of which  are now                                                              
seen in Alaska and  the nation.  Living in an  oil state creates a                                                              
conundrum  between the  revenue  from oil  and  setting aside  the                                                              
last  5  percent   of  the  North  Slope  that  is   not  open  to                                                              
development.     Ms.  Lucaj  relayed  recent   conversations  with                                                              
workers on  the North Slope and  miners who love  Alaska, hunting,                                                              
and fishing,  and believe  that  areas like the  refuge should  be                                                              
protected.    She  said her heritage  has taught  her to  fight to                                                              
protect  the unique  way of  life of  one of  the last  indigenous                                                              
peoples who can live off the land.                                                                                              
                                                                                                                                
2:41:40 PM                                                                                                                    
                                                                                                                                
ADRIAN HERRERA,  Washington DC  Coordinator, Arctic  Power, stated                                                              
that  Arctic  Power  is  a  nonprofit  organization  that  runs  a                                                              
national   grassroots   advocacy  campaign   for   environmentally                                                              
responsible  oil and  gas  development  of the  1002  area of  the                                                              
coastal plain.   Organized  in 1992,  Arctic Power receives  grant                                                              
funds from the State  of Alaska and works closely  with the Alaska                                                              
Congressional  Delegation  and  the  governor's  office.    Arctic                                                              
Power supports  HJR 7;  in fact,  opening 1002  is perhaps  one of                                                              
the  single most  important  energy policy  acts  for the  nation.                                                              
Just  this  year,  two proposed  bills  have  been  introduced  in                                                              
Congress  that contain  ANWR 1002  provisions,  and about  fifteen                                                              
more  are expected  during this  session.   As a  matter of  fact,                                                              
single  houses of  Congress have  passed legislation  to open  the                                                              
1002 area  of ANWR fifteen times  in the past  thirty-three years,                                                              
most recently  last year.   Each resolution  passed by  the Alaska                                                              
State Legislature  to open the 1002  area of ANWR is  delivered by                                                              
Arctic  Power   to  Congressional   offices   and  to  many   non-                                                              
governmental  agencies.   Mr.  Herrera  opined  this is  the  most                                                              
important action  taken to  convey the wishes  and beliefs  of the                                                              
residents of Alaska;  a past study showed that over  50 percent of                                                              
all   public  respondents   who   were  initially   against   1002                                                              
development,  changed their  minds when  told that  a majority  of                                                              
Alaskans  and state  government support  this issue.   He  assured                                                              
the committee  that Arctic  Power will  continue to inform  others                                                              
that development  and nature can coexist, and  that development of                                                              
the  1002  area is  crucial  to  the nation's  transition  to  new                                                              
alternative  energy  resources, funded  by  trust  funds from  oil                                                              
taxes.                                                                                                                          
                                                                                                                                
2:46:39 PM                                                                                                                    
                                                                                                                                
JULIE  KITKA,  President,  Alaska  Federation  of  Natives  (AFN),                                                              
explained  AFN's position  of support  for HJR  7 was taken  after                                                              
extended debate and  discussion.  The official position  of AFN is                                                              
to  support careful  and  responsible development  because  Alaska                                                              
has a  responsibility to further  energy security in  the national                                                              
interest.                                                                                                                       
                                                                                                                                
2:48:16 PM                                                                                                                    
                                                                                                                                
TARA SWEENEY,  Senior Vice President  of External  Affairs, Arctic                                                              
Slope  Regional Corporation  (ASRC), informed  the committee  ASRC                                                              
is owned  by 11,000 Inupiat  shareholders and was  formed pursuant                                                              
to the Alaska Native  Claims Settlement Act (ANCSA)  in 1971.  The                                                              
corporation  owns approximately  5,000,000  acres  of land  within                                                              
the  boundaries  of  the  North  Slope.   In  addition,  ASRC  and                                                              
Kaktovik  Inupiat  Corporation,  the Native  corporation  for  the                                                              
Village  of Kaktovik,  own more  than 92,000  acres of  subsurface                                                              
and surface  acreage inside the  coastal plain.  These  lands hold                                                              
significant promise  for onshore oil and gas  development and both                                                              
organizations  remain  committed  to  developing  resources  in  a                                                              
manner  that   respects  Inupiat   subsistence  values,   protects                                                              
culture,  and  ensures proper  care  of  the  environment.   As  a                                                              
result  of  a provision  in  the  Alaska National  Interest  Lands                                                              
Conservation Act  (ANILCA) these  lands remain protected  awaiting                                                              
further  action  from Congress,  which  is  the basis  for  ASRC's                                                              
support for  HJR 7.  In  addition, her organization  requests that                                                              
the surface  and subsurface  ownership of  both ASRC and  Kaktovik                                                              
Inupiat  Corporation are  acknowledged in  the resolution  because                                                              
the resolution is  aligned with ASRC's mission  to enhance Inupiat                                                              
economic opportunity  while protecting subsistence  freedoms.  Ms.                                                              
Sweeney reminded  the committee that the Arctic  is an unforgiving                                                              
climate and home  to the residents of Kaktovik -  the only village                                                              
within the  boundaries of  ANWR -  who subsist  from the  land and                                                              
the  sea; in  fact, no  one  would suffer  greater  harm from  the                                                              
mismanagement  of  the coastal  plains  lands.  She opined  it  is                                                              
possible to  develop the coastal  plains oil and gas  reserves and                                                              
allow access to  energy resources with a minimum  footprint in the                                                              
refuge and  without a  significant disturbance  to wildlife.   The                                                              
legislature  should  take  a  leadership  role  to  promote  sound                                                              
energy policy and  responsible oil and gas development  to provide                                                              
a safe  and secure source  of energy to  the nation and  to create                                                              
jobs  for Alaskans.    The  coastal plain  has  been  home to  the                                                              
Inupiat people  for over 10,000  years and ASRC would  not support                                                              
development of  this area if  it would  have an adverse  effect on                                                              
subsistence; however,  without further development  in the region,                                                              
communities will not survive.                                                                                                   
                                                                                                                                
REPRESENTATIVE  HAWKER asked  that the  sponsor take  heed of  Ms.                                                              
Sweeney's  counsel about  respecting the  private property  rights                                                              
and interests within  the 1002 area that are  being completely and                                                              
totally disrespected by the federal government.                                                                                 
                                                                                                                                
2:52:37 PM                                                                                                                    
                                                                                                                                
JAMES  SULLIVAN, representing  the  Southeast Alaska  Conservation                                                              
Council  (SEACC),  submitted  written   comments  from  SEACC  and                                                              
fourteen other  organizations across the  state and the  nation in                                                              
opposition  to HJR 7.   He  said the organizations  feel  that the                                                              
refuge  should   remain  a  refuge,  devoid  of   exploration  and                                                              
development.   In  response to  Representative Tarr,  he said  the                                                              
signatory organizations  are: Alaska  Center for the  Environment,                                                              
Alaska  Community  Action  on Toxics,  Alaska  Wilderness  League,                                                              
Alaska  Quiet Rights  Coalition, Arctic  Audubon, Audubon  Alaska,                                                              
Friends  of Alaska  National Wildlife  Refuges, Gwich'in  Steering                                                              
Committee,   National   Wildlife   Federation,   Northern   Alaska                                                              
Environmental   Center,   Pacific    Environment,   Sierra   Club,                                                              
Resisting  Environmental  Destruction  on  Indigenous  Lands,  The                                                              
Wilderness Society, and Southeast Alaska Conservation Council.                                                                  
                                                                                                                                
2:54:19 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SADDLER,  after ascertaining that  no one else  wished to                                                              
testify, closed public testimony.                                                                                               
                                                                                                                                
REPRESENTATIVE JOHNSON remarked:                                                                                                
                                                                                                                                
     I  find   it  a  little   disingenuous  that   the  good                                                                   
     committee  from Fairbanks  testified  earlier that  they                                                                   
     would  not support  the cleanup  of oil  wells, but  yet                                                                   
     they come  forward to oppose  the opening of ANWR.   So,                                                                   
     I just  wanted to make sure  that that was clear  and on                                                                   
     the record.                                                                                                                
                                                                                                                                
2:54:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P. WILSON moved Conceptual Amendment 1 that read:                                                                
                                                                                                                                
     On page 4, line 2, delete "Inuit" and add "Inupiat"                                                                        
                                                                                                                                
REPRESENTATIVE WILSON  explained that the word Inuit  includes all                                                              
of the  people, and Inupiat  includes all  of those living  on the                                                              
North Slope.                                                                                                                    
                                                                                                                                
2:55:57 PM                                                                                                                    
                                                                                                                                
LINDA SYLVESTER,  Staff, Representative Lynn Gattis,  Alaska State                                                              
Legislature,  informed  the  committee  that  the  correction  was                                                              
brought  forward  by  Representative   Nageak,  who  is  from  the                                                              
Village of Kaktovik.                                                                                                            
                                                                                                                                
2:56:41 PM                                                                                                                    
                                                                                                                                
There being no objection, Conceptual Amendment 1 was adopted.                                                                   
                                                                                                                                
MS. SYLVESTER  advised  the sponsor  of HJR 7  would consider  the                                                              
conceptual  amendment brought  forward  by Tara  Sweeney  to be  a                                                              
friendly  amendment, and  suggested  drawing the  language of  the                                                              
amendment from Representative Hawker's statement.                                                                               
                                                                                                                                
2:57:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HAWKER  moved  to adopt  Conceptual  Amendment  2,                                                              
which  is that  Legislative  Legal Services,  Legislative  Affairs                                                              
Agency,  is  authorized  to  draft  an amendment  to  HJR  7  that                                                              
recognizes   the  substantial   private   property  interests   of                                                              
Kaktovik  Inupiat Corporation  and  ASRC in  this  area, and  that                                                              
those  property  rights  be  respected.    He  further  asked  for                                                              
Legislative Legal  to be granted  large latitude to work  with the                                                              
sponsor, and with Ms. Sweeney, on that language.                                                                                
                                                                                                                                
CO-CHAIR SADDLER restated the intent of Conceptual Amendment 2.                                                                 
                                                                                                                                
REPRESENTATIVE   HAWKER   stressed   the   importance   that   the                                                              
conceptual amendment  reflect the following:  the land is  held in                                                              
private property  ownership; the development of the  land is being                                                              
obstructed by federal  policy; these are lands  that were conveyed                                                              
to the Arctic  people by part  of the terms and  qualifications of                                                              
ANCSA; these  are their legacy lands  that they were  charged with                                                              
economically developing  for the future of their  people; and they                                                              
are  being denied  the opportunity  for  that development  through                                                              
the federal  government's own denial  of access to the  lands that                                                              
were given specifically for that purpose.                                                                                       
                                                                                                                                
2:59:03 PM                                                                                                                    
                                                                                                                                
There being no objection, Conceptual Amendment 2 was adopted.                                                                   
                                                                                                                                
2:59:19 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  FEIGE  moved  to  report  the proposed  CS  for  HJR  7,                                                              
Version   28-LS0399\N,   as  amended,   out   of  committee   with                                                              
individual  recommendations and  zero fiscal  notes.  There  being                                                              
no objection, CSHJR  7(RES) was reported from the  House Resources                                                              
Standing Committee.                                                                                                             
                                                                                                                                
2:59:43 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SADDLER handed the gavel back to Co-Chair Feige.                                                                       
                                                                                                                                

Document Name Date/Time Subjects
HJR6 LAA Fiscal Note.pdf HRES 2/27/2013 1:00:00 PM
HJR 6
HJR6 AOGCC Presentation.pdf HRES 2/27/2013 1:00:00 PM
HJR 6
HJR6 Petroleum News Article.pdf HRES 2/27/2013 1:00:00 PM
HJR 6
HJR6 RDC Letter.pdf HRES 2/27/2013 1:00:00 PM
HJR 6
HJR6 Sponsor Statement.pdf HRES 2/27/2013 1:00:00 PM
HJR 6
HJR6 Version N.pdf HRES 2/27/2013 1:00:00 PM
HJR 6
HJR7 ANWR Map.pdf HRES 2/27/2013 1:00:00 PM
HJR 7
HJR7 CBO Report.pdf HRES 2/27/2013 1:00:00 PM
HJR 7
HJR7 LAA Fiscal Note.pdf HRES 2/27/2013 1:00:00 PM
HJR 7
HJR7 RDC Letter.pdf HRES 2/27/2013 1:00:00 PM
HJR 7
HJR7 Sponsor Statement.pdf HRES 2/27/2013 1:00:00 PM
HJR 7
HJR7 Version U.pdf HRES 2/27/2013 1:00:00 PM
HJR 7
HJR7 Version N.pdf HRES 2/27/2013 1:00:00 PM
HJR 7
HJR7 ACE Letter.pdf HRES 2/27/2013 1:00:00 PM
HJR 7
HJR6 Cribley Testimony.pdf HRES 2/27/2013 1:00:00 PM
HJR 6