03/15/1994 05:00 PM House TRA

  Number 007                                                                   
                                                                               
  SENATOR BERT SHARP introduced himself as sponsor of CSSB
, and stated:  "Under current statute, the state is                       
  prohibited from disposing of or leasing state land within                    
  five miles of the right-of-way of the Dalton Highway.  The                   
  state has recently acquired several parcels of land in this                  
  area, under its land selection allocation, yet it cannot be                  
  leased or purchased.  This is in spite of the fact that the                  
  previous owner (federal BLM) did lease parcels in these                      
  areas.                                                                       
                                                                               
  "In the summer of 1992, Summit Telephone Company applied to                  
  the Alaska Public Utilities Commission for certification to                  
  provide telephone service to Coldfoot and Wiseman.  BLM                      
  assured them that they would not have any problems obtaining                 
  a long term lease for a central switching office and 60 foot                 
  radio tower in Coldfoot.  Upon receiving certification from                  
  APUC, Summit immediately went to BLM to obtain the land.                     
  They were told that the land surrounding Coldfoot had been                   
  transferred to the State of Alaska, and they would have to                   
  apply to the Department of Natural Resources (DNR) to obtain                 
  land in Coldfoot.                                                            
                                                                               
  "The DNR informed Summit Telephone that there could be no                    
  leasing or sale of land in the Coldfoot area, because such                   
  disposal was prohibited by statute.  Also included in the                    
  land transfer was the transfer to the state of existing                      
  leaseholds and pending leasehold applications.  The state is                 
  unable to renew existing leases as they expire or to                         
  consider new applications, or accommodate legitimate state                   
  needs.  Besides the Summit Telephone application, there are                  
  existing leases, some of which are at Coldfoot to Petro                      
  Star, Inc., for a 33-acre parcel and a Uncal staging area at                 
  Franklin Bluffs.  There are several other applications                       
  pending.                                                                     
                                                                               
  "The DNR has testified that the lands involved and subject                   
  to leasing or sale are located in areas where such activity                  
  is presently allowed.  Those are the five mile Yukon River                   
  Crossing, Coldfoot-Wiseman and the Happy Valley-Franklin                     
  Bluffs areas and Deadhorse.  Senate Bill 210 would modify                    
  this ban and allow the DNR to lease land for nonresidential                  
  development.  This would enable telephone service, airport                   
  and highway maintenance activities to proceed, as well as                    
  public service needs.  I urge your favorable vote on this                    
  legislation.  Thank you."                                                    
                                                                               
  SENATOR SHARP brought to the committee's attention an                        
  amendment which was made on the Senate floor by he and                       
  Senator Kerttula which provides that the state will not pay                  
  for any utility relocation in the highway right-of-way; any                  
  utility getting a lease in that area is on notice that any                   
  future relocation will be at their expense.  He commented                    
  that this had been a concern of Senator Kerttula's.                          
                                                                               
  Number 129                                                                   
                                                                               
  REPRESENTATIVE HUDSON asked Senator Sharp if there was a                     
  letter of intent accompanying CSSB 210.                                      
                                                                               
  Number 135                                                                   
                                                                               
  SENATOR SHARP responded in the negative, stating that the                    
  only action was the amendment on the Senate floor.                           
                                                                               
  Number 139                                                                   
                                                                               
  REPRESENTATIVE MULDER moved that CSSB 210 be moved from the                  
  House Transportation Committee with individual                               
  recommendations and the accompanying zero fiscal note.                       
                                                                               
  Number 144                                                                   
                                                                               
  CHAIR FOSTER asked if there were any objections.  There were                 
  none, and CSSB 210 was declared moved from committee.                        
                                                                               
  CHAIR FOSTER thanked Senator Sharp.