Legislature(1995 - 1996)

03/22/1995 03:50 PM Senate RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
 SRES - 3/22/95                                                                
        HB 169 DEPT. NAT RES. IS LEAD AGENCY FOR MINING                       
                                                                              
 The committee took up HB 169.  ROD MOURANT, legislative assistant             
 to Representative Kott, testified for the sponsor.  HB 169 defines            
 the Department of Natural Resources (DNR) as the lead agency for              
 permit processing and development of the mining industry.  DNR will           
 act as a coordinating and contact agency for mining companies to              
 obtain information on the status and requirements of their                    
 activities.  This measure was recommendation number five in the               
 Alaska Minerals Commission 1995 report.  The applicant would meet             
 with DNR and define the project; DNR would appoint a team leader              
 who defines the scope of the project and determine participating              
 agencies, who then appoint agency coordinators.  The applicant                
 would then meet with personnel to develop a work plan and time                
 frame.  This method will be less expensive for the applicant, but             
 should the applicant not meet the work plan requirements, the                 
 project would revert to the normal project process, and would no              
 longer be handled on an expedited basis.                                      
                                                                               
 MR. MOURANT explained the committee substitute addresses department           
 concerns that the legislation implied that DNR would take over                
 statutory requirements of other departments.  That was not the                
 intent of the sponsor, therefore the language, "and, in its                   
 capacity as lead agency, shall coordinate all regulatory matters              
 concerning mineral resource exploration, development mining and               
 associated activities," on lines 6-8, page 1, was added.                      
                                                                               
 LEN VERELLI, Director of the Air and Water Quality Management                 
 Sections at the DEC, stated the language added to the committee               
 substitute is satisfactory to DEC.                                            
                                                                               
 NEIL MACKINNON stated CSHB 169 (RES) is one of the AMC's                      
 recommendations.  He commented as a small mine operator, he would             
 prefer to go to one agency for information, and to have one person            
 accountable for that information.                                             
                                                                               
 Number 523                                                                    
                                                                               
 JULES TILESTON, Director of Mining and Water Management, DNR, gave            
 the following testimony.  The administration has not yet taken a              
 position on CSHB 169(RES), but he believes the amendments will                
 resolve the administration's concerns.   The Alaska Minerals Policy           
 Commission reviewed the Fort Knox project in Fairbanks and                    
 determined the effectiveness of the project was due to the fact               
 that DNR assigned a senior staff member, familiar with the                    
 permitting process and agencies, to coordinate the process.  DNR              
 has expertise in mining, water management, and reclamation,                   
 statewide; the Division of Governmental Coordination (DGS) provides           
 technical expertise on mining related issues; the Division of Lands           
 deals with tidelands; and the Plants Materials Center contains the            
 state's reclamation experts.  The word "coordinate" will not mean             
 that DNR will take on the permitting or regulatory authorities of             
 other entities; nor can it arbitrarily or capriciously direct                 
 another entity to do something against its laws or regulations.               
 The term does imply that evaluations, decisions, and processes be             
 uniformly applied to mining operations throughout Alaska.  He noted           
 AS 27.19.010(d) is another way of solving the problem; it prevents            
 DNR's ability to usurp or modify other agencies' authorities and              
 responsibilities.                                                             
                                                                               
 Number 570                                                                    
                                                                               
 SENATOR TAYLOR asked how the bill could be redrafted to usurp the             
 authority of the other departments.  MR. TILESTON remarked he has             
 worked on the permit process of major projects in the state for 25            
 years and believes it is critical to provide strong leadership and            
 a consistent approach to the permitting process.                              
                                                                               
 TAPE 95-24, SIDE B                                                            
                                                                               
 SENATOR TAYLOR commented he believes when the competing entities              
 are forced to sit with, and justify, their capricious activities to           
 their colleagues, they have to acknowledge the rules and                      
 regulations of the other entities involved.                                   
                                                                               
 Number 570                                                                    
                                                                               
 SENATOR LINCOLN asked what the DGC's function is.                             
                                                                               
 GLEN GRAY, project analyst with the DGC, stated DGC plays a similar           
 coordinating role with coastal zone projects as DNR would under               
 CSHB 169 (RES) with mining projects.  If two or more state permits,           
 or one federal permit, are required for coastal zone projects, DGC            
 coordinates those reviews.                                                    
                                                                               
 Number 557                                                                    
                                                                               
 SENATOR PEARCE asked what "hammer" DGC has when an agency is being            
 obstructive.  MR. GRAY replied final deference is given to the                
 specific agency that has responsibility for that resource.  If an             
 agreement is not reached, the DGC makes its best guess and writes             
 a consistency determination which can be appealed by the agencies.            
                                                                               
 SENATOR PEARCE commented the Shepard's Point road project that was            
 mandated by Judge Holland in an agreement between the federal                 
 government, the state, and the Alyeska plaintiffs, is not                     
 progressing.  She stated permits are not forthcoming; part of the             
 problem is the U.S. Corps of Engineers, but the DF&G is unwilling             
 to issue permits because they feel the project is unnecessary.  She           
 questioned the need for DGC if they cannot fulfill the requirements           
 of a court ordered project.  MR. GRAY responded he was not familiar           
 with that project.                                                            
                                                                               
 Number 518                                                                    
                                                                               
 SENATOR LINCOLN asked if the coordinating functions of DGC and DNR            
 will overlap if CSHB 169(RES) passes.  MR. GRAY answered the bill             
 would require that DGC, when it coordinates such a review, would              
 involve DNR.  DNR would act as the lead agency; DGC would                     
 coordinate the review.                                                        
 SENATOR LINCOLN asked for clarification of the agency roles.  MR.             
 GRAY explained DGC would still provide the permitting coordination;           
 and would work closely with the lead agency regarding DNR's                   
 concerns.                                                                     
                                                                               
 Number 518                                                                    
                                                                               
 SENATOR LINCOLN questioned Mr. Gray's opinion of CSHB 169(RES).               
 MR. GRAY felt the word "coordinate" created confusion.  To his                
 understanding, this bill would not affect the authority of any                
 other agency, therefore it would not create a problem for DGC                 
 because DGC would still coordinate reviews within the coastal zone.           
 The bill would ensure that DGC work with DNR in the permitting                
 process.                                                                      
                                                                               
 SENATOR LINCOLN requested the committee provide a letter of intent            
 to clarify that CSHB 169(RES) was not designed to permit DNR to               
 function for other departments.                                               
                                                                               
 SENATOR TAYLOR stated the legislation implies DNR will be the lead            
 agency, therefore they need to lead other agencies.  SENATOR                  
 LINCOLN did not feel CSHB 169(RES) clarifies the situation                    
 described by Senator Taylor.  She stated the testimony differed.              
                                                                               
 SENATOR HOFFMAN asked for Mr. Mourant's understanding of the                  
 delineation of functions under CSHB 169(RES).  MR. MOURANT                    
 explained the word "coordinate" means just that; there is no change           
 of authority intended by the measure.  The regulatory and statutory           
 authorities of DEC, DF&G, DGS, and DNR will remain in those                   
 agencies as specified in regulation and statute.  The only purpose            
 of CSHB 169(RES) is to provide a single contact point for mining              
 applicants to get advice, coordinate, and find out the status of              
 their projects.  It is a method of expediting a bureaucratic                  
 process.                                                                      
                                                                               
 Number 488                                                                    
                                                                               
 SENATOR HOFFMAN questioned DF&G's comments on the fiscal note.  MR.           
 MOURANT replied the fiscal note was not provided to the sponsor,              
 therefore he was unable to comment.                                           
                                                                               
 Number 458                                                                    
                                                                               
 SENATOR TAYLOR remarked in both British Columbia and Alberta, the             
 government decides whether the project will occur, and directs its            
 agencies to provide solutions to any problems.  In Alaska, the                
 agencies are asked to bring all problems to the table to shut the             
 project down.  He felt Alaska to be approaching the problem in a              
 backward manner.  He added if CSHB 169(RES) creates a "one stop               
 shopping" system for mining applicants, that system will not be               
 expeditious if every agency creates blocks to the process.  He                
 noted it has taken longer to obtain the initial permits on the AJ             
 mine than it took to win World War II.                                        
                                                                               
 Number 443                                                                    
                                                                               
 MR. MOURANT indicated there are many matters regulated by DF&G that           
 are of no interest to the mining community.  DF&G would coordinate            
 its regulatory authority with DNR on only those matters affected by           
 the application.                                                              
                                                                               
 SENATOR LINCOLN asked if there would be committee objection to                
 DEC's recommended language that further states that Section 1 does            
 not alter or diminish the authority of another state agency under             
 its laws and regulations.                                                     
                                                                               
 SENATOR LEMAN did not believe the language to be necessary.                   
                                                                               
 MR. MOURANT explained HB 169 was initially amended because of that            
 concern, and that language was developed in coordination with the             
 affected agencies, who now seem to feel further clarification is              
 necessary.                                                                    
                                                                               
 SENATOR LEMAN announced CSHB 169(RES) would be held until Monday.             
 He also announced the next Senate Resources Committee meeting would           
 be held on Friday; SB 69 and SJR 20 are scheduled.  The                       
 subcommittee on SB 130 will meet on Thursday at 1:00 p.m. in the              
 Beltz Room.  He adjourned the meeting at 4:50 p.m.                            
                                                                               

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