Legislature(2005 - 2006)BUTROVICH 205

02/13/2006 03:30 PM Senate RESOURCES


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 166 WILDLIFE CONSERVATION TAG TELECONFERENCED
Scheduled But Not Heard
+= HB 37 PUBLIC ACCESS TO FISHING STREAMS TELECONFERENCED
Heard & Held
*+ SB 203 UNIFIED PERMIT APPLICATION TELECONFERENCED
Heard & Held
*+ SB 213 APPROPRIATION FOR MINERAL INVENTORY TELECONFERENCED
Moved SB 213 Out of Committee
           SB 213-APPROPRIATION FOR MINERAL INVENTORY                                                                       
                                                                                                                                
CHAIR WAGONER announced SB 213 to be up for consideration.                                                                      
                                                                                                                                
SENATOR GENE THERRIAULT,  sponsor of SB 213,  testified that more                                                               
investments in  the mineral industry  like the Pogo Mine  that is                                                               
pouring its  very first  gold brick,  is what  this appropriation                                                               
seeks to  achieve for the  State of Alaska. The  mineral industry                                                               
provides healthy  tax receipts and private  sector employment. He                                                               
said  that SB  213 proposes  an appropriation  of $5  million for                                                               
geophysical surveys  that would be  doled out over  several years                                                               
in  line   with  a  recommendation   from  the   Alaska  Minerals                                                               
Commission, which asked  for a level greater than  $1 million per                                                               
year.                                                                                                                           
                                                                                                                                
3:39:44 PM                                                                                                                    
SENATOR  THERRIAULT related  that  inconsistent funding  provided                                                               
since  1993 caused  problems  in  planning strategic  geophysical                                                               
survey  programs  and  the  state  was  not,  therefore,  getting                                                               
efficient use of its dollars.                                                                                                   
                                                                                                                                
3:43:00 PM                                                                                                                    
SENATOR  BERT  STEDMAN  said  he liked  the  concept  of  looking                                                               
forward to  map a  consistent future  for the  state's resources,                                                               
because   Alaska  is   a  resource-based   state.  He   asked  if                                                               
technological  advances  created  a  need to  update  old  survey                                                               
information.                                                                                                                    
                                                                                                                                
SENATOR THERRIAULT replied that the  work that has been done over                                                               
the past  couple of years  is pretty  close to cutting  edge, but                                                               
that old information was sketchy.                                                                                               
                                                                                                                                
3:46:20 PM                                                                                                                    
SENATOR  KIM ELTON  asked if  parallel surveys  are happening  on                                                               
federal and BLM land.                                                                                                           
                                                                                                                                
SENATOR THERRIAULT  replied the federal government  is working on                                                               
surveying  its lands,  too, and  has provided  some money  to the                                                               
state for this project.                                                                                                         
                                                                                                                                
SENATOR  ELTON  asked if  the  state  is surveying  some  federal                                                               
lands, too.                                                                                                                     
                                                                                                                                
SENATOR THERRIAULT replied yes.                                                                                                 
                                                                                                                                
3:47:52 PM                                                                                                                    
ROBERT  SWENSON,  Acting  Director, Division  of  Geological  and                                                               
Geophysical  Surveys,  Department  of  Natural  Resources  (DNR),                                                               
explained  the state's  mineral  resource program  using a  power                                                               
point  program.   Its  mission  is  to   conduct  geological  and                                                               
geophysical surveys  to determine  the potential of  Alaskan land                                                               
for  production   of  metals,  minerals,  fuels   and  geothermal                                                               
resources;  the   locations  and  supplies  of   groundwater  and                                                               
construction  materials; and  the potential  geologic hazards  to                                                               
buildings,   roads,   bridges   and   other   installations   and                                                               
structures.   The   department  identifies   Alaska's   potential                                                               
resources for the state's citizens.                                                                                             
                                                                                                                                
3:51:23 PM                                                                                                                    
He  explained  digital  elevation  modeling  and  how  it  showed                                                               
tremendous diversity in all the  samples by referencing the power                                                               
point presentation.                                                                                                             
                                                                                                                                
3:52:04 PM                                                                                                                    
SENATOR BEN STEVENS arrived.                                                                                                    
                                                                                                                                
3:53:21 PM                                                                                                                    
MR. SWENSON  explained that the state  has funded high-resolution                                                               
geophysics mapping of  6.1 million state acres and  the Bureau of                                                               
Land Management  (BLM) had  fund mapping  of 3.7  million federal                                                               
acres.  Currently,  40  million  acres  are  identified  as  high                                                               
potential.  High-resolution geophysics  mapping costs  about $575                                                               
per square  mile or about  $.90 per  acre and over  three million                                                               
acres of  1:63,360-detailed geologic  mapping has  been completed                                                               
and published using it. The entire  state has a lot of geophysics                                                               
data  already, but  it's very  regional. His  slides on  Interior                                                               
data  on  current  operating  mines   and  showed  that  lots  of                                                               
exploration is going on.                                                                                                        
                                                                                                                                
4:02:55 PM                                                                                                                    
SENATOR ELTON asked  how much the DGGS sells its  data for and if                                                               
it has a cost recovery program.                                                                                                 
                                                                                                                                
MR. SWENSON  replied that  the data  is very  cheap and  he makes                                                               
sure it is available to everyone  in the public. Their website is                                                               
updated so  that the  data can  be downloaded.  He didn't  have a                                                               
specific cost recovery program.                                                                                                 
                                                                                                                                
4:04:42 PM                                                                                                                    
STEVE  CULLIGAN,  President,  Ditera Satellite  Mapping  Company,                                                               
stated that  the DGGS had  done a good  job of using  its funding                                                               
and  has provided  very useful  data  that has  turned into  some                                                               
successful developments. He  said that the state's  mapping is in                                                               
pretty  poor shape  in  general and  that he  is  using the  same                                                               
inaccurate maps  that he used  35 years  ago. The state  needs to                                                               
know  what resources  it has  and geological  mapping has  a very                                                               
high return on investment. He supported SB 213.                                                                                 
                                                                                                                                
4:08:12 PM                                                                                                                    
SENATOR THERRIAULT stated  that it is unusual to  have a separate                                                               
appropriation bill with  a line item to make its  way through the                                                               
process,  but  he  hoped  the  committee  felt  comfortable  with                                                               
passing the  bill. He said  the state rides the  commodity roller                                                               
coaster  up and  down, so  it should  strike while  the commodity                                                               
prices  are  high  and  establish  an  outline  of  its  resource                                                               
inventory so private industry can act.                                                                                          
                                                                                                                                
4:10:09 PM                                                                                                                    
SENATOR ELTON asked if anything  could change the funding from $1                                                               
million every five years to, say, $2.5 million in two years.                                                                    
                                                                                                                                
SENATOR  THERRIAULT replied  that the  department would  have the                                                               
latitude to do that, but it  is not interested in sharp swings up                                                               
and down and he doubted it would.                                                                                               
                                                                                                                                
4:12:16 PM                                                                                                                    
SENATOR  STEDMAN  moved  to  pass  SB  213  from  committee  with                                                               
individual recommendations.  There were no objections  and it was                                                               
so ordered.                                                                                                                     

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