Legislature(2015 - 2016)BARNES 124
04/17/2015 01:00 PM House RESOURCES
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| Audio | Topic |
|---|---|
| Start | |
| SB70 | |
| SJR18 | |
| HB191 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 70 | TELECONFERENCED | |
| + | SJR 18 | TELECONFERENCED | |
| *+ | HB 191 | TELECONFERENCED | |
| + | TELECONFERENCED |
SB 70-GAS PIPELINE RIGHT-OF-WAY;PARKS;REC AREAS
1:04:00 PM
CO-CHAIR NAGEAK announced that the first order of business is CS
FOR SENATE BILL NO. 70(FIN), "An Act relating to exceptions from
designation as a special purpose site under art. VIII, sec. 7 of
the Constitution of the State of Alaska for portions of Denali
State Park, Captain Cook State Recreation Area, Nancy Lake State
Recreation Area, and Willow Creek State Recreation Area to allow
leasing a right-of-way for a natural gas pipeline."
1:04:33 PM
BEN ELLIS, Director, Division of Parks & Outdoor Recreation,
Department of Natural Resources (DNR), introduced CSSB 70(FIN)
on behalf of the Walker Administration, sponsor. He explained
that the bill is necessary to open a corridor through four state
legislatively designated areas - Denali State Park, and Willow
Creek, Nancy Lakes, and Captain Cook state recreation areas -
through the Right-of-Way Leasing Act for the purposes of
construction of a natural gas pipeline from the North Slope.
MR. ELLIS projected a map provided by DNR of Denali State Park
depicting the proposed right-of-way corridor. He explained that
of the four areas it is the only area with the potential of
having either the Alaska Liquefied Natural Gas Project (Alaska
LNG Project or AK LNG) pipeline or the Alaska Stand Alone
Pipeline (ASAP) within the corridor. The green squared-off area
down the middle of the map delineates the sections included in
the bill, and this proposed area is wide enough to accommodate
either gasline, or even both, coming from the North Slope.
MR. ELLIS displayed a map provided by DNR of the Nancy Lakes
State Recreation Area. He pointed out that the red line which
denotes the ASAP route touches the Nancy Lakes State Recreation
Area in a few places, but not nearly as much as in Denali State
Park. Drawing attention to the left side of the map he said the
corridor that is depicted is where the AK LNG gasline would go,
but that the Nancy Lakes Recreation Area would only be impacted
by the ASAP gasline.
MR. ELLIS showed a map provided by DNR of the Willow Creek State
Recreation Area. He explained that the red line going through
the area colored in light green is the area included in the bill
and is for the ASAP gasline, and to the left of it on the map is
the AK LNG gasline.
MR. ELLIS presented a map provided by DNR of the Captain Cook
State Recreation Area, explaining that this map focuses only on
the AK LNG gasline because the ASAP gasline would have stopped
north of Anchorage.
1:08:45 PM
MR. ELLIS said CSSB 70(FIN) would accomplish the following
primary objectives: 1) Authorize the issuance of a right-of-way
lease under AS 38.35, the Pipeline Right-of-Way Leasing Act, for
a natural gas pipeline in an identified corridor through Denali
State Park, and Willow Creek, Nancy Lakes, and Captain Cook
state recreation areas. 2) The corridor will be adequate for
either the AK LNG or the ASAP project. 3) Requires the corridor
to be managed as parkland or recreation area until a right-of-
way lease is issued under AS 38.35; upon termination of the
lease the corridor returns to original parkland and recreation
area management. 4) Provides supplemental requirements to
reserve traditional means of public access and minimize the
impact of a pipeline on the specific values of park and
recreation areas. 5) Clarifies that the DNR commissioner's
power to delegate condemnation authority to the lease does not
apply within the bounds of the park and recreation areas. 6)
Requires the gas pipeline lease to be issued before January 1,
2025, and pipeline construction to begin within 10 years of the
effective date of the lease.
MR. ELLIS explained the bill is needed because the parks at
issue are special-use sites, reserved from the public domain by
the legislature. General state land is open to multi-purpose
use and leases are appropriate; there are many leases under
general state land, also known as Title 38 lands. But, when a
parkland or recreation area is created by the legislature, that
land is pulled out of general state land and put into a special-
use area, in this case it is for recreation, called Title 41
land. Neither a director nor a commissioner has authority to
lease Title 41 land and that is the basic reason for bringing
forward this bill. A director can give a short-term contract to
a user in an area of concessionaire, but usually that is for a
period of 5-10 years. State game refuges and Susitna Basin
recreational rivers are not included in the bill because these
areas aren't closed to leasing under AS 38.35 where a lease
would be compatible with the purposes of the reserves.
1:12:01 PM
MR. ELLIS stated the corridor specified in the bill would
suffice for both the ASAP and the AK LNG projects. The Alaska
LNG Project and the Alaska Gasline Development Corporation
(AGDC) have worked cooperatively to select a common alignment
for both projects; AGDC has completed its route revisions to the
common alignment and is calling it Rev. 6.1. Field efforts for
both projects have changed to reflect the common alignment as
evidenced in the geo-technical site locations currently being
conducted within Denali State Park and these efforts are close
to being completed at this point in time.
MR. ELLIS said the changes made in CSSB 70(FIN) from the bill as
introduced are as follows: 1) CSSB 70(FIN) expands references
in three of the four recreation area sections to include
authorization to issue right-of-way leases under the Pipeline
Right-of-Way Leasing Act in Denali State Park, Captain Cook
State Recreation Area, and Nancy Lakes State Recreation Area.
No change was needed for Willow Creek State Recreation Area. 2)
CSSB 70(FIN) changes the survey language by removing "including
land that would lie within the described parcels but for a U.S.
survey," and replacing it with "state or federal survey does not
remove land from the parcels described in (a) of this section."
3) In an effort to provide for ample time for a right-of-way
leasing on the project, CSSB 70(FIN) deletes in four locations
of the original bill the language "provide for termination of
the lease if commercial operation of the pipeline has not begun
five years after the effective date of the lease" and replaces
it with "provide for termination of the lease if construction of
the pipeline has not begun 10 years after the effective date of
the lease." 4) Also in an effort to provide for ample time,
CSSB 70(FIN) in four locations of the bill extends the date of
the lease to become effective from January 1, 2020, to January
1, 2025. It was done in four locations because each park or
recreation area has a section in the bill, so if the language is
changed in one it must be changed in all four of the references.
1:14:57 PM
MR. ELLIS pointed out that CSSB 70(FIN) does not identify a
right-of-way. It opens a sufficient amount of acreage to the
Pipeline Right-of-Way Leasing Act within which a right-of-way
can be selected. The corridor designated by CSSB 70(FIN) would
be adequate for the final engineering determinations as to where
the exact right-of-way is issued. The right-of-way within the
area authorized by CSSB 70(FIN) will be approximately 120 feet
wide for construction reduced to 53 feet wide for operation for
the ASAP Project, and approximately 180 feet for construction
and 100 feet for operation for the Alaska LNG Project. No
Native allotments are within the corridor proposed in CSSB
70(FIN) for Denali State Park, and Willow Creek, Nancy Lakes,
and Captain Cook state recreation areas. Further, CSSB 70(FIN)
will not affect hunting and fishing in any way, the access will
be secured. Until such time as a right-of-way corridor is
leased, access will be the same as it is today. Once a right-
of-way is leased and construction begins there may be some
temporary restrictions on hunting and fishing for construction
purposes, but only in the areas that are under construction at
that particular time. The bill provides for full return of the
land to the park when it is no longer needed for pipeline
purposes. Two releases of land are anticipated. First, once
construction is complete, the construction right-of-way will
contract to operating right-of-way. This will result in the
release of land, which would become fully part of the park again
without further action by the legislature. Second, at the end
of the pipeline life, the lessee will be required to return the
land to a condition acceptable to the commissioner of the
Department of Natural Resources and upon completion of this the
land will be released and returned to the park.
1:17:34 PM
REPRESENTATIVE SEATON inquired whether the granting of the lease
would change the availability of that corridor for oil and gas
exploration, drilling, and development.
JOHN HUTCHINS, Assistant Attorney General, Oil, Gas & Mining
Section, Civil Division (Juneau), Department of Law, replied
that currently the land is parkland and not part of the public
domain and that he doesn't think oil and gas exploration and
development is authorized in parkland to begin with.
REPRESENTATIVE SEATON asked whether creation of the lease
corridor without a restriction or change on it alters that
designation so that it would then be available for oil and gas
exploration and production.
MR. HUTCHINS responded no, the statute as drafted limits
disposal of the land in the corridor to leasing for a right-of-
way for a gas pipeline from the North Slope and that is the only
reason that land within this corridor can be disposed of or used
in any manner other than park purposes.
1:19:12 PM
REPRESENTATIVE SEATON noted there has been some question about
access and road access along the corridor once the pipeline is
built. He inquired whether the road that will be along the
pipeline will be available for public use and what will be the
standard of roadway.
MR. ELLIS answered that once the pipeline is in the ground an
access road will be built on top of the pipeline area. The
discussion as to the requirements of how vigorous that access
road would be has not yet taken place. He understood the access
road would provide for the need of access to the pipeline
necessary for the health of the pipeline. He further
understood, and his vision is, that it would provide all-terrain
vehicle (ATV) access along that area, which is not currently
had. He said he can also see the road providing snow machine
access in the wintertime for recreational use, which is not
available now. Unlike the Trans-Alaska Pipeline System (TAPS)
corridor where the pipeline is above ground and that area
limited to the amount of access, this pipeline is below ground
and the access should be as free as it is today once the
pipeline is in place.
REPRESENTATIVE SEATON understood it is not anticipated that the
access road would be a roadway for regular vehicle traffic that
would then divide the park.
MR. ELLIS replied correct, it would be an access road to provide
for the checking of the pipeline and it would not be a road as
such. He reiterated that he envisions it being used for
recreational activities within the park of ATVs in the summer,
which currently there is none, and of snow machines north and
south, again which currently there is none. The access road
will come by or near a lot of the Parks Highway right-of-way and
that will play a part into all of this as well.
1:22:12 PM
REPRESENTATIVE TARR observed that the map produced by AGDC for
the Denali State Park withdrawals depicts the DNR additions to
SB 70 in red and the proposed additions to withdrawal in blue.
She further observed that the maps produced by DNR reflect the
DNR additions, but the proposed additions to withdrawal are not
reflected.
MR. ELLIS responded the [DNR] maps were provided through the SB
70 process, starting with the Senate Resources Standing
Committee followed up by the Senate Finance Committee. The
[AGDC] map has not been introduced to DNR and, while DNR is
aware of it, he cannot comment on it at this time.
1:23:30 PM
REPRESENTATIVE JOSEPHSON related he has visited and backpacked
in the park and recreation areas in question and the Captain
Cook State Recreation Area has massive trees along the
shoreline. He noted he is a great supporter of this project,
but asked whether the trees will be removed before there is a
definitive natural gas plan.
MR. ELLIS answered that CSSB 70(FIN) allows for a right-of-way,
which for the Captain Cook State Recreation Areas is a 2,000-
foot corridor because it deals with the AK LNG line. At
whatever point a gasline is determined to be constructed, if it
is the ASAP line then Captain Cook Recreation Area won't be
affected at all. If it is the AK LNG line, then there will be
further testing as to where in that 2,000-foot corridor the
construction corridor would be created. He anticipated that in
that phase there would be no tree removal. He also anticipated
the possibility of some seismic testing for soil samples and so
forth, much like what there currently is in Denali State Park.
Once the construction corridor of 180 feet is determined that
area will be cleared. After construction that corridor will be
reduced to 100 feet and the other 80 feet will go back to
natural regrowth. He understood there will be no issuance of
right-of-way that would allow for anything to happen in the area
until such time a determined route was decided upon and the
party or parties would then go forward in asking to have a
right-of-way through the Pipeline Right-of-Way Leasing Act for
these four park and recreation areas.
1:26:52 PM
CO-CHAIR NAGEAK opened public testimony.
1:27:21 PM
CHARLES MCKEE testified he has acreage on the Parks Highway in
the vicinity of mile 88 and is concerned about how the right-of-
way might affect that particular area. He noted he was injured
on the job and now has a much reduced income and could therefore
lose his land for lack of payment to the bank.
1:31:45 PM
CO-CHAIR NAGEAK requested AGDC to respond to the question about
tree removal within the proposed corridor.
FRANK RICHARDS, P.E., Vice President, Engineering and Program
Management, Alaska Gasline Development Corporation (AGDC),
replied that the cutting of trees along a pipeline right-of-way
doesn't come into play until actually into the construction
mode. The granting to DNR of the ability to provide a corridor
or right-of-way for AGDC in the planning efforts in no way means
AGDC is going to go out and start cutting trees. Only at the
point that a pipeline route has been selected, funding and
financing procured, and a final investment decision (FID) made,
would AGDC go out and with a defined right-of-way route of [180]
feet start removing trees.
1:33:08 PM
CO-CHAIR TALERICO moved to adopt Amendment 1, labeled 29-
GS1820\N.1, Shutts, 4/15/15, which read:
Page 2, following line 11:
Insert "Section 5: E1/2"
Page 2, following line 16:
Insert "Section 29: SW1/4"
Page 2, following line 22:
Insert "Section 4: SE1/4"
Page 3, following line 13:
Insert "Section 21: NW1/4"
Page 3, line 29:
Delete ": NE1/4, S1/2"
Page 4, line 3:
Delete "SE1/4"
Insert "S1/2, NE1/4"
Page 4, following line 8:
Insert "Section 25: SE1/4"
REPRESENTATIVE SEATON objected for discussion purposes.
1:34:20 PM
JULIE MORRIS, Staff, Representative David Talerico, Alaska State
Legislature, explained Amendment 1 would add small pieces to the
right-of-way. She read through the legal descriptions provided
in the amendment and drew attention to the map prepared by the
Alaska Gasline Development Corporation (AGDC), which depicts in
blue these proposed additions to withdrawal for the proposed
right-of-way.
1:36:58 PM
REPRESENTATIVE JOSEPHSON inquired whose idea is the amendment
and asked what the purpose is of these additions.
MS. MORRIS offered her understanding that this section of the
right-of-way needs to be wide enough to have both the AK LNG and
the ASAP pipelines. The amendment widens the corridor.
REPRESENTATIVE JOSEPHSON asked whether this is DNR's request.
MS. MORRIS responded DNR is aware of the amendment.
REPRESENTATIVE JOSEPHSON understood, then, that DNR is aware of
the amendment but it is not DNR's amendment.
MS. MORRIS deferred to DNR to provide an answer.
1:38:15 PM
REPRESENTATIVE TARR said it appears that there are not amended
areas to include all of the parcels indicated in blue on the
AGDC map. She requested that DNR respond in this regard.
MR. RICHARDS answered that the map prepared by AGDC is based on
AGDC's knowledge of the request for additional parcels, which is
what AGDC has represented in blue. He said he believes those
line up with what is identified in Amendment 1.
REPRESENTATIVE TARR observed that Amendment 1 includes seven
additions, but the map indicates eight or nine parcels.
CO-CHAIR TALERICO replied that line 18 of the amendment is for
two separate portions and said anywhere there is a comma in the
amendment [it is a separate portion]. So, there are actually 10
in the amendment and they should coincide with each area on the
map. He explained that this is a kind of flexibility to allow
the folks to find the best location for the pipeline. Sections
are in squares but the pipeline direction runs at a diagonal, so
it is an effort to expand the potential footprint to find the
best laydown area for the pipeline. It widens the corridor in
areas that appear to be very narrow.
1:40:57 PM
CO-CHAIR NAGEAK requested Mr. Ellis to comment.
MR. ELLIS responded that Amendment 1 did not originate in DNR,
but DNR was aware of it and DNR's opinion was that the right-of-
way as described was wide enough. That said, he added, DNR is
not opposed to the additions.
CO-CHAIR NAGEAK inquired about how much [acreage] it is for each
of those areas.
MR. ELLIS deferred to Mr. Hutchins for an answer.
MR. HUTCHINS answered that a full section is approximately 640
acres and each of these is a quarter section, so each of the
blue squares on the map is 160 acres.
1:43:01 PM
REPRESENTATIVE TARR observed the right-of-way will come close to
Byers Lake, a high value recreation area. She asked whether DNR
anticipates any problems with that.
MR. ELLIS replied DNR does not anticipate any negative impacts
upon Byers Lake or Byers Lake Campground during this process.
1:43:45 PM
REPRESENTATIVE SEATON removed his objection. [Amendment 1 was
treated as adopted.]
1:43:53 PM
CO-CHAIR NAGEAK closed public testimony after ascertaining no
one else wished to testify.
1:44:37 PM
CO-CHAIR TALERICO moved to report CSSB 70(FIN), as amended, out
of committee with individual recommendations and the
accompanying fiscal notes. There being no objection, HCS CSSB
70(RES) was reported from the House Resources Standing
Committee.