05/04/2006 08:30 AM Senate JUDICIARY
| Audio | Topic |
|---|---|
| Start | |
| HJR9 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | HJR 9 | TELECONFERENCED | |
| += | SJR 17 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE JUDICIARY STANDING COMMITTEE
May 4, 2006
8:56 a.m.
MEMBERS PRESENT
Senator Ralph Seekins, Chair
Senator Charlie Huggins, Vice Chair
Senator Hollis French
MEMBERS ABSENT
Senator Gene Therriault
Senator Gretchen Guess
COMMITTEE CALENDAR
HOUSE JOINT RESOLUTION NO. 9 am
Urging the United States Congress to honor the process and
judgment of the federal courts in the case of the Exxon Valdez
disaster and to refrain from enacting legislation that would
affect the outcome of the courts' resolution of the case.
MOVED SCS HJR 9(JUD) OUT OF COMMITTEE
SENATE JOINT RESOLUTION NO. 17
Urging the United States Department of Justice and the Alaska
Department of Law to identify all natural resource damages from
the Exxon Valdez oil spill that were unanticipated at the time
of the 1991 settlement, to develop plans to remedy the damages,
and to present the ExxonMobil Corporation with a request for the
full $100,000,000 that is available through the "Reopener for
Unknown Injury" clause of the 1991 civil settlement to carry out
these plans.
SCHEDULED BUT NOT HEARD
PREVIOUS COMMITTEE ACTION
BILL: HJR 9
SHORT TITLE: URGE CONGRESS HONOR EXXON VALDEZ JUDGMENT
SPONSOR(s): REPRESENTATIVE(s) LEDOUX
02/14/05 (H) READ THE FIRST TIME - REFERRALS
02/14/05 (H) RES, JUD
03/30/05 (H) RES AT 1:00 PM SENATE FINANCE 532
03/30/05 (H) Moved Out of Committee
03/30/05 (H) MINUTE(RES)
04/01/05 (H) RES RPT 6DP
04/01/05 (H) DP: OLSON, ELKINS, LEDOUX, CRAWFORD,
RAMRAS, SAMUELS
04/11/05 (H) JUD AT 1:00 PM CAPITOL 120
04/11/05 (H) Moved Out of Committee
04/11/05 (H) MINUTE(JUD)
04/12/05 (H) JUD RPT 4DP 3NR
04/12/05 (H) DP: GRUENBERG, ANDERSON, COGHILL, GARA;
04/12/05 (H) NR: KOTT, DAHLSTROM, MCGUIRE
04/19/05 (H) TRANSMITTED TO (S)
04/19/05 (H) VERSION: HJR 9 AM
04/20/05 (S) READ THE FIRST TIME - REFERRALS
04/20/05 (S) RES, JUD
04/25/05 (S) RES AT 3:30 PM BUTROVICH 205
04/25/05 (S) Moved HJR 9 am Out of Committee
04/25/05 (S) MINUTE(RES)
04/26/05 (S) RES RPT 3DP 1NR
04/26/05 (S) DP: WAGONER, ELTON, STEDMAN
04/26/05 (S) NR: DYSON
01/25/06 (S) JUD AT 8:30 AM BUTROVICH 205
01/25/06 (S) Bill Hearing Postponed
05/03/06 (S) JUD AT 8:30 AM BUTROVICH 205
05/03/06 (S) Heard & Held
05/03/06 (S) MINUTE(JUD)
05/04/06 (S) JUD AT 8:30 AM BUTROVICH 205
WITNESS REGISTER
Senator Hollis French
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Sponsor of SJR 17
Representative Gabrielle LeDoux
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Sponsor of HJR 9
Tim Joyce, Mayor
City of Cordova
Cordova, Alaska
POSITION STATEMENT: Testified in support of HJR 9
Ken Adams, Fisherman
Cordova, Alaska
POSITION STATEMENT: Testified in support of HJR 9
Lloyd Montgomery, Fisherman
Cordova, Alaska
POSITION STATEMENT: Testified in support of HJR 9
ACTION NARRATIVE
CHAIR RALPH SEEKINS called the Senate Judiciary Standing
Committee meeting to order at 8:56:10 AM. Present were Senators
Hollis French, Charlie Huggins, and Chair Ralph Seekins.
HJR 9-URGE CONGRESS HONOR EXXON VALDEZ JUDGMENT
8:57:33 AM
CHAIR RALPH SEEKINS announced HJR 9 to be up for consideration.
He recognized that SJR 17 was similar to the resolution and that
Senator French, sponsor of SJR 17, was prepared to offer a
committee substitute (CS) for HJR 9 that would combine the
efforts of both resolutions.
SENATOR HOLLIS FRENCH distributed a CS that would combine HJR 9
and SJR 17 titled 24-LS0532\G. He explained that the combination
would make one "ExxonMobil resolution" for the committee's
consideration. He offered to answer questions.
REPRESENTATIVE GABRIELLE LEDOUX agreed with Senator French's
proposal. She accepted the Senate Committee Substitute for HJR
9.
SENATOR FRENCH explained that version G would be accompanied by
a concurrent resolution calling for a title change. The
resolution would urge the federal courts to refrain from
enacting legislation that would affect the outcome of the
court's resolution in the case before the Ninth Circuit Court of
Appeals. The resolution would likewise urge the United States
Department of Justice (US DOJ) and the Alaska Department of Law
(DOL) to begin the process of pursuing the "reopener clause",
which was bargained for in the original settlement and was
intended to cover the cost of unanticipated damages.
The "Whereas clauses" begin on page 1 with a short recitation of
the basis facts of the Exxon Valdez grounding back in March
1989. The first clause on page 2 covers the facts of the spill
size. The clause on line 8 refers to the civil settlement
between the federal and state government and ExxonMobil. The
clause on line 13 notes that the reopener needs to occur before
September 1, 2006. The clause on line 23 relates the fact that
there was a unanimous jury finding for the awarding of damages,
which are still in litigation and before the Ninth Circuit Court
of Appeals. The clause beginning on line 31 denotes that
ExxonMobil once sought an amendment to substantially reduce the
amount of damages that it would have to pay for the Exxon Valdez
oil spill.
9:02:49 AM
SENATOR FRENCH continued clauses on page 3 states the fact that
there are cost-effective restoration opportunities to mitigate
the unanticipated damages and that the governments are required
to submit detailed plans to use the reopener funds 90 days
before a formal request to the ExxonMobil Corporation. The last
clause states that it is in the best interest of the citizens of
Alaska that the governments assert the claim for full payment
for the additional damages in the Exxon Valdez oil spill.
The "Resolved clauses" combine the two resolutions. One
respectfully urges Congress to not enact any legislation that
would delay the punitive damages awarded to more than 32,000
plaintiffs and the next two clauses urge the two governments to
identify natural resource damages from the oil spill that were
unanticipated.
9:04:12 AM
CHAIR SEEKINS expressed concern that the facts and figures in
the resolution need to be absolutely correct if the committee
was prepared to move it forward.
SENATOR FRENCH responded the 11,000,000 gallons of crude oil
spilled has been a topic of great discussion and is a minimum
figure. There are many assertions that the spill was far larger
than stated initially. The tankers generally carry close to one
million barrels or 350,000,000 gallons of oil. One of the
scientists that testified in court described the size of the
spill as 10,000 square miles and covering 13,000 miles of
shoreline. The numbers on page 2, line 26 need to be adjusted to
update the resolution to the present day, he noted.
9:08:16 AM
REPRESENTATIVE LEDOUX said her office distributed a memo from
one of the chief attorneys in the Exxon Valdez case indicating
that oral argument in the Ninth Circuit Court of Appeals took
place on January 27, 2006 and that there is no decision yet. The
oral argument can be viewed online at the Court website.
SENATOR FRENCH noted there have been five or six trips to the
Ninth Circuit Court to date on the case. The facts asserted on
page 3 line 3 were buttressed from testimony heard in the Senate
Resources Standing Committee from two scientists who have worked
on the spill. He recounted testimony from Doctor Jeep Rice who
spoke about the amount of oil just below the surface of tidal
zones in the affected beaches. He described the oil as being
still liquid enough to pool up in the holes that scientists dug.
At the time that damages were assessed it was not envisioned
that the oil would take so long to weather. Expert opinion was
that the oil would quickly become tar-like and non-toxic and
that has turned out to be untrue.
9:11:21 AM
CHAIR SEEKINS asked Senator French whether he knew of any
movement in Governor Frank Murkowski's Administration to gather
the information necessary to file the reopener.
SENATOR FRENCH said the Administration has conducted hearings in
Cordova, Anchorage and Kodiak and that indicates some movement.
He said he could not speak to their intentions.
CHAIR SEEKINS inquired as to how recently the meetings were
held.
REPRESENTATIVE LEDOUX responded less than a month ago.
CHAIR SEEKINS noted that would indicate that they are aware of
the deadline.
9:13:06 AM
CHAIR SEEKINS stated that the resolution was saying that Alaska
does not want the United States Congress to intervene with
legislation that would reduce or delay payment and that Alaska
wants the US DOJ and the DOL to identify all natural resource
damages. He said he was taking at face value that the data the
committee considered was correct.
SENATOR HUGGINS asked Representative LeDoux whether she could
coordinate this effort with Governor Murkowski's Administration.
REPRESENTATIVE LEDOUX explained that the resolution would inform
the Administration of the will of the Legislature. She said she
would be happy to work with the Administration if they are
interested in working together.
SENATOR HUGGINS said the resolution goes well beyond that
because it is sent to the President of the United States. He
suggested the resolution would appear to spite the Governor.
SENATOR FRENCH interrupted to explain that the resolution is
simply recognition of the different branches of government. He
said it formalizes the communication between the two branches.
It is a cooperative measure, which urges action and offers
support.
SENATOR HUGGINS said he saw it as going over the Governor's
head.
REPRESENTATIVE LEDOUX said from her perspective the Legislature
should deliver the message and that the Administration should
deliver a similar message.
9:18:03 AM
CHAIR SEEKINS called for public testimony.
TIM JOYCE, Mayor of Cordova, testified in support of the
resolution. He recognized that the two resolutions were combined
but addressed two different issues, one the deals with the
actual punitive damages and one that deals with the reopener
clause. He informed the committee that he recently returned from
Washington D.C. where he has been informing people about the
Exxon Valdez litigation. There is a letter from the United
States House of Representatives to the chairman of ExxonMobil
Corporation currently circulating in the House collecting
signatures. He read the letter to the committee. He referred to
an opinion written by the judge that said, "ExxonMobil's
continued protest suggests that Exxon, even today, has not come
to grips with the (indisc) that society rightfully attaches to
drunk driving."
9:22:41 AM
MR. JOYCE charged that ExxonMobil has never compensated the
plaintiffs for their continuing damages including, in the words
of the trial judge, "the fact that the social fabric of Prince
William Sound and lower Cook Inlet was torn apart." They have
only used delay tactics. They have filed nearly 400 motions and
a dozen appeals successfully prolonging the litigation beyond
all reasonable limits, he asserted. In the meantime thousands of
victims have died without obtaining the damages to which there
were entitled. ExxonMobil posted a $36 billion dollar profit
last year alone.
MR. JOYCE stated the delay tactics are irresponsible and
indefensible. It has now been 17 years since one of the worst
maritime environmental disasters in the nation's history and
nearly 12 years since the jury verdict. It is past time to get
the issue resolved, he said.
9:25:05 AM
SENATOR FRENCH moved to adopt version 24-LS0532\G as the working
document before the committee. Hearing no objections, the motion
carried.
9:30:41 AM
CHAIR SEEKINS called for public testimony.
KEN ADAMS, Cordova fisherman, testified in support of HJR 9. He
said it was not only appropriate but also essential that the
resolution be moved forward. He suggested that the energy
companies feel like they can do as the please without being held
responsible for their actions. The resolution would be at the
very least, a deterrent for corporations that are sloppy and
negligent in their business with the State of Alaska.
MR. ADAMS asserted that the people in Prince William Sound will
always be on the interface between two incompatible industries;
the transporting of oil through the sound, and the fisheries for
which the area is world famous.
9:37:28 AM
LLOYD MONTGOMERY, Cordova, testified that he accompanied Mayor
Joyce to Washington D.C. He shared his experience and questioned
how the people responsible for the devastation could continue to
believe they should not pay for it. He said that Governor
Murkowski and United States Senator Lisa Murkowski were caught
in the middle of the action and that they were doing everything
they could to settle the situation.
MR. MONTGOMERY referred to a piece of artwork that he made in
the fall of 1990 representing the community of Cordova. It
referenced frustration, segregation, suicides, and loss of
economy. He asserted that people in Washington do not understand
the devastation that Cordova has been going through.
9:44:56 AM
MR. MONTGOMERY said he has been through an emotional time the
past couple weeks sharing personal examples of suicides,
bankruptcies and the "lingering oil after affects." He said:
I'll give you a perfect example. Yesterday there was a
lawsuit filed against the seiners and that is a
lingering oil effect. If it wasn't for the Exxon oil
spill, we wouldn't be in this position now. We
wouldn't be going to court.
9:47:11 AM
CHAIR SEEKINS closed public testimony.
SENATOR FRENCH moved Amendment 1. Page 2 line 24, delete $5.3
and insert $4.3. Hearing no objections, Amendment 1 was adopted.
SENATOR FRENCH moved Amendment 2. Page 2 line 26, delete "15"
and insert "17." Also delete "more than ten" and insert "nearly
twelve." Hearing no objections, Amendment 1 was adopted.
SENATOR HUGGINS moved SCS HJR 9(JUD) from committee with
individual recommendations and attached fiscal notes. Hearing no
objections, the motion carried.
There being no further business to come before the committee,
Chair Seekins adjourned the meeting at 9:51:05 AM.
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