Legislature(2005 - 2006)BUTROVICH 205

04/26/2006 03:30 PM Senate RESOURCES


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Audio Topic
03:40:18 PM Start
03:44:08 PM SJR17
04:34:36 PM HB484
04:39:35 PM Bp North Slope Oil Spills - Update
04:59:14 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SJR 17 COLLECT MORE EXXON VALDEZ SPILL DAMAGES TELECONFERENCED
Moved CSSJR 17(RES) Out of Committee
+= HB 484 FISHERY ASSOCIATION REIMBURSEMENT TELECONFERENCED
Moved CSHB 484(FSH) Out of Committee
+ BP North Slope Spills - Update TELECONFERENCED
+ HB 57 SALE OF STATE LAND TO ADJACENT LANDOWNERS TELECONFERENCED
<Bill Hearing Postponed to 4/27/06>
+ HB 415 RECREATIONAL LAND USE LIABILITY/ADV. POSS TELECONFERENCED
<Bill Hearing Postponed to 4/27/06>
+ HB 419 REPEAL UNDERGROUND STORAGE TANK LAWS TELECONFERENCED
<Bill Hearing Postponed to 4/27/06>
= SB 170 BD/DEPT OF FISH & GAME POWERS & DUTIES
<Bill Hearing Postponed>
         SJR 17-COLLECT MORE EXXON VALDEZ SPILL DAMAGES                                                                     
                                                                                                                              
CHAIR THOMAS WAGONER announced SJR to be up for consideration.                                                                  
                                                                                                                                
SENATOR  HOLLIS FRENCH,  sponsor of  SJR 17,  explained that  the                                                               
resolution asks the attorneys general  for Alaska and the U.S. to                                                               
pursue a reopener  clause seeking up to $100  million for damages                                                               
that  were  not  anticipated  when the  Exxon  Valdez  oil  spill                                                               
litigation was  settled in 1991.  He directed  committee member's                                                               
attention  to  copies of  a  1991  New  York Times  article  that                                                               
provides a  glimpse at the  confrontational litigation  that took                                                               
place  in settling  the claims  and the  role the  transportation                                                               
secretary played as a critical go between.                                                                                      
                                                                                                                                
The article mentions President  Bush's EPA administrator, William                                                               
Riley, who  insisted that the  settlement contain  some provision                                                               
for future and  as yet unforeseen injuries. The  figure Mr. Riley                                                               
put  forth  initially  was  $300  million,  but  the  figure  was                                                               
eventually reduced to $100 million.                                                                                             
                                                                                                                                
SENATOR FRENCH noted  that in 2003 the  National Research Council                                                               
conducted a study  that said one of the profound  outcomes of the                                                               
1989 Exxon Valdez oil spill was  that the affect of oil spills on                                                               
marine resources  is largely unpredictable.  It found  that there                                                               
is  a lack  of understanding  of  the structure  and function  of                                                               
complex ecosystems.                                                                                                             
                                                                                                                                
SENATOR FRENCH  outlined the  six legal  steps that  are required                                                               
before the state could get money from Exxon.                                                                                    
   1. Populations, habitats and species must have suffered losses                                                               
     or declines of the spill area.                                                                                             
   2. Losses have to be substantial.                                                                                            
   3. Losses have to have resulted from the oil spill.                                                                          
   4. Losses could not have reasonably been known or anticipated                                                                
     at the time the Trustees settled the case.                                                                                 
   5. Restoration projects must be identifiable.                                                                                
   6. Costs of the projects must not be grossly disproportionate                                                                
     to the magnitude of the benefits anticipated from the                                                                      
     remediation.                                                                                                               
                                                                                                                                
3:44:08 PM                                                                                                                    
SENATOR BEN STEVENS arrived.                                                                                                    
                                                                                                                                
SENATOR FRENCH  highlighted the groups that  support the measure.                                                               
Notably  the  City  of Cordova,  Kodiak  Island  Borough,  Alaska                                                               
Municipal  League,  Kenai  Peninsula   Borough,  and  the  Prince                                                               
William Sound Science Center  have issued supporting resolutions.                                                               
Also,  the  United  Cook  Inlet  Drift  Association,  the  United                                                               
Fishermen of  Alaska, the Chugach Regional  Resources Commission,                                                               
and the Cordova District Fishermen  United have issued letters of                                                               
support.                                                                                                                        
                                                                                                                                
3:45:13 PM                                                                                                                    
CHAIR WAGONER asked  how much money is left in  the current Exxon                                                               
Valdez Oil Spill (EVOS) account.                                                                                                
                                                                                                                                
SENATOR FRENCH said he did not know.                                                                                            
                                                                                                                                
3:45:29 PM                                                                                                                    
STACY STUDEBAKER,  Vice Chair,  Public Advisory  Committee (PAC),                                                               
Exxon Valdez Trustee Council, Kodiak,  reported that she has been                                                               
a member  of the  EVOS PAC  for the  last 10  years and  has been                                                               
following   the  restoration   process  and   scientific  studies                                                               
carefully. She  urged the  committee to  supported SCR  17, which                                                               
encourages  the  state  and  federal  government  to  reopen  the                                                               
settlement with Exxon  and to seek $100 million  for projects and                                                               
damaged resources  that could  not have  been anticipated  at the                                                               
time of the settlement.                                                                                                         
                                                                                                                                
MS.  STUDEBAKER  related  that  lingering oil  was  found  at  58                                                               
percent of  91 test  sites. That  is estimated  to have  a linear                                                               
shoreline equivalent of  at least 6 miles of  shoreline in Prince                                                               
William Sound. Seventeen years ago  it wasn't possible to predict                                                               
that so  much oil would still  be present below the  surface in a                                                               
form that resembles  that encountered in 1989.  The lingering oil                                                               
is bio-available and continues to  impede the recovery of species                                                               
that live  and or  feed in the  oiled areas.  Furthermore, recent                                                               
studies  show  that   lingering  oil  is  more   toxic  than  was                                                               
anticipated in  1991 and it's  possible that organisms  are being                                                               
exposed  to  sources  of  lingering  oil  that  have  yet  to  be                                                               
discovered.                                                                                                                     
                                                                                                                                
Adding to the list that  Senator French highlighted, she said the                                                               
Kodiak Island  Borough, the  City of Kodiak,  the City  of Homer,                                                               
the City  of Cordova,  and the Kenai  Peninsula Borough  have all                                                               
passed  resolutions  supporting  SJR   17.  Essentially  all  the                                                               
communities  within the  spill  region  as well  as  a number  of                                                               
organizations  support reopening  the settlement.  She emphasized                                                               
that  list includes  the EVOS  Trustees  Council Public  Advisory                                                               
Committee.                                                                                                                      
                                                                                                                                
MS. STUDEBAKER said local people  don't consider the oil spill to                                                               
be over  because they  are living with  the long-term  impacts to                                                               
fisheries, subsistence food,  and wildlife populations. Long-term                                                               
monitoring  must  go  hand-in-hand  with  short-term  restoration                                                               
projects, she concluded.                                                                                                        
                                                                                                                                
3:50:34 PM                                                                                                                    
MIKE MAXWELL,  Cordova, said he  was born and raised  in Cordova.                                                               
He has been  a commercial fisherman for 37 years  and he is still                                                               
very angry  with Exxon because  after 17  years there is  still a                                                               
lot of  lingering oil on the  beaches. He asked the  committee to                                                               
support  SJR  17  and  help revitalize  the  once  great  herring                                                               
fisheries.                                                                                                                      
                                                                                                                                
PATIENCE ANDERSON  FAULKNER, Cordova, stated support  for SJR 17.                                                               
[Abbreviated testimony due to audio difficulty.]                                                                                
                                                                                                                                
ROXY  ESTES, Cordova,  said she  is  a second-generation  Cordova                                                               
fisherman who is  no longer able to fish because  of the collapse                                                               
in  the herring  fishery.  Although the  reopener won't  directly                                                               
affect  fishermen, it  would benefit  both the  human and  animal                                                               
species that  depend on herring  as a  part of their  food chain.                                                               
Pointing out that  scientists are talking about  a 100-year clean                                                               
up, she said we need help in a desperate fashion.                                                                               
                                                                                                                                
NANCY  BIRD,  President,  Prince William  Sound  Science  Center,                                                               
Cordova,  spoke   to  the  resolution   the  board   passed  last                                                               
September. It urges support for  reopening the claim and suggests                                                               
that the funds  be used to endow long-term programs  to study and                                                               
monitor the long-term effects of  the lingering oil on the marine                                                               
environment  as   well  as  to  assess   remediation  techniques.                                                               
Programs   should  specifically   include  a   long-term  herring                                                               
research  and restoration  program  that  would advise  fisheries                                                               
management entities on further restoration efforts.                                                                             
                                                                                                                                
She  noted  that  others  have highlighted  the  main  issues  of                                                               
lingering oil on  the beaches and the decline  of herring species                                                               
both of which provide a link  to unanticipated damages. As far as                                                               
how  the money  is  used, she  said the  issues  before us  don't                                                               
necessarily  have  specific  plans.  No one  has  ever  tried  to                                                               
enhance  herring   populations  on   the  scale  that   is  under                                                               
discussion. In  the same vein  there aren't any  known techniques                                                               
for  beach  remediation on  the  scale  that is  necessary  here.                                                               
However, small projects  can be started and the  lack of detailed                                                               
plans should not inhibit forward movement.                                                                                      
                                                                                                                                
MS.  BIRD emphasized  the importance  of herring  to all  species                                                               
throughout Prince William  Sound. At this point  the ecosystem is                                                               
changing because of the lack of herring.                                                                                        
                                                                                                                                
3:57:51 PM                                                                                                                    
SENATOR RALPH SEEKINS arrived.                                                                                                  
                                                                                                                                
MS. BIRD advised that the  restoration reserve fund currently has                                                               
about  $120  million. Those  funds  are  specifically to  restore                                                               
damages that were  known at the time of the  settlement while SJR
17 addresses damages that were unanticipated in 1991.                                                                           
                                                                                                                                
CHAIR WAGONER inquired about the clam and muscle populations.                                                                   
                                                                                                                                
MS. BIRD  replied she  isn't aware  of the  details, but  she has                                                               
seen  indications that  bivalves in  the oiled  areas are  having                                                               
difficulty.   She   elaborated   that  herring   are   having   a                                                               
particularly hard time  because so many species  are dependent on                                                               
herring.                                                                                                                        
                                                                                                                                
4:00:33 PM                                                                                                                    
SENATOR  FRED DYSON  asked how  many  miles of  beach were  oiled                                                               
originally.                                                                                                                     
                                                                                                                                
MS. BIRD replied she understands it was 1,500 miles.                                                                            
                                                                                                                                
SENATOR DYSON asked how many miles of beach have lingering oil.                                                                 
                                                                                                                                
MS.  BIRD  replied between  6  and  15  miles,  but it  covers  a                                                               
deceptively  wide   region  because  the  oiling   doesn't  occur                                                               
continuously. It's more like a  few hundred yards here and there.                                                               
She related  that when she recently  visited the Bay of  Isles on                                                               
the north end of Knight Island  it was easy to find lingering oil                                                               
that came to  surface. It still sheens and looks  and smells like                                                               
fresh  oil. It's  not  everywhere but  it's  still impacting  the                                                               
ecosystem, she said.                                                                                                            
                                                                                                                                
SENATOR DYSON  asked about  the status of  the beaches  that were                                                               
left as test sites.                                                                                                             
                                                                                                                                
MS. BIRD  replied she believes  it's been a mixed  bag. Initially                                                               
it took  longer for  species to  come back  on beaches  that were                                                               
treated  because  the treatment  killed  so  much. The  untreated                                                               
beaches have  a lot  of residual  oil and the  result of  that is                                                               
that the critters have been slow to come back.                                                                                  
                                                                                                                                
SENATOR DYSON  asked if the  untreated test beaches  are included                                                               
in the shoreline estimate for lingering oil.                                                                                    
                                                                                                                                
MS. BIRD said  she didn't know. She elaborated on  aspects of the                                                               
testing.                                                                                                                        
                                                                                                                                
SENATOR DYSON  said he'd  like to  know specifically.  He changed                                                               
topics  and  noted  that  the  last  report  he  saw  on  herring                                                               
indicated that  the petroleum could  cause genetic damage  in the                                                               
species. He  asked Ms. Bird  if oil is  the certain cause  of the                                                               
herring population  demise as  opposed to  other causes  or long-                                                               
term cycles.                                                                                                                    
                                                                                                                                
MS. BIRD  clarified that  she is  not a  scientist and  then said                                                               
that  despite the  fact that  strong correlations  can be  drawn,                                                               
there is  no scientific  way to definitively  make the  link that                                                               
the oil spill caused the demise  of the herring. She related that                                                               
recent acoustic surveys indicate that  the demise of herring most                                                               
likely began in 1990 right after  the oil spill, but the evidence                                                               
isn't definitive because  acoustic studies were not  done in 1990                                                               
through 1993.  She offered to  send further study  information as                                                               
well as the specific beach information.                                                                                         
                                                                                                                                
SENATOR  DYSON  asked  if  the marine  animal  species  that  are                                                               
troubled in  Prince William Sound  are also troubled in  areas of                                                               
Alaska that were not oiled.                                                                                                     
                                                                                                                                
MS. BIRD said Stellar Sea Lions  are stressed in areas other than                                                               
Prince William Sound and that  species relies heavily on herring.                                                               
Harbor Seals were  on the decline, but they  are stabilizing now.                                                               
She didn't  know about populations  in other areas.  Killer Whale                                                               
populations in Prince  William Sound have dropped  but that's not                                                               
the case in other areas such as Southeast.                                                                                      
                                                                                                                                
4:10:15 PM                                                                                                                    
CHAIR WAGONER closed the public hearing.                                                                                        
                                                                                                                                
SENATOR RALPH  SEEKINS asked  if there are  natural oil  seeps in                                                               
the Prince William Sound area.                                                                                                  
                                                                                                                                
SENATOR DYSON  said insignificant amounts occur  in the northeast                                                               
corner.  He then  said  he  would like  to  get more  information                                                               
before voting on the resolution.                                                                                                
                                                                                                                                
CHAIR WAGONER  commented on  the amount in  the EVOS  account and                                                               
said the money is going  further since Governor Murkowski stopped                                                               
the  previous  spending practices.  He  suggested  that the  $120                                                               
million  that's left  in the  fund should  go a  long way  toward                                                               
doing some of the studies that are indicated.                                                                                   
                                                                                                                                
He  stated that  he would  like to  see the  resolution move;  it                                                               
simply asks  that the  reopener clause  be considered  before the                                                               
June 2 deadline.                                                                                                                
                                                                                                                                
4:13:15 PM                                                                                                                    
SENATOR  KIM  ELTON suggested  that  not  passing the  resolution                                                               
expeditiously could  be interpreted to mean  that the legislature                                                               
doesn't support pursuit of the reopener clause.                                                                                 
                                                                                                                                
SENATOR BERT  STEDMAN referenced  page 3, line  10, and  asked if                                                               
the March 24, 2006 date should be changed.                                                                                      
                                                                                                                                
SENATOR  FRENCH  responded  the  date has  passed  so  it  should                                                               
probably be removed from the resolution.                                                                                        
                                                                                                                                
SENATOR DYSON declared  a potential conflict of  interest. He has                                                               
participated  in  seven  or  eight  marine  science  projects  in                                                               
Southcentral and is actively pursuing more of that work.                                                                        
                                                                                                                                
4:16:29 PM                                                                                                                    
SENATOR  ALBERT KOOKESH  said  he would  like  the resolution  to                                                               
move.                                                                                                                           
                                                                                                                                
SENATOR DYSON said he would  like more information, but he didn't                                                               
want to impede progress.                                                                                                        
                                                                                                                                
CHAIR  WAGONER  asked Mr.  Rice  to  respond to  Senator  Dyson's                                                               
questions.                                                                                                                      
                                                                                                                                
SENATOR DYSON asked  what science has said about  the damage that                                                               
was done to the herring populations.                                                                                            
                                                                                                                                
STANLEY RICE, senior scientist for  oil spill studies at the Auke                                                               
Bay  Lab, National  Marine  Fisheries  Service, Juneau,  provided                                                               
information on  the herring decline  in Prince William  Sound. He                                                               
explained  that in  1989  most  eggs were  not  spawned in  oiled                                                               
zones,  but  just  about  all the  herring  larvae  that  hatched                                                               
drifted  into the  oiled areas  so there  was a  very significant                                                               
effect in  the 1989  year-class. The  damage was  cellular rather                                                               
than  reproductive  cell genetic  damage  so  it did  not  affect                                                               
successive generations. Nevertheless it  was a significant impact                                                               
to the  1989 year-class even  though the population  didn't crash                                                               
until sometime later.                                                                                                           
                                                                                                                                
One researcher suggests  that the population may  have started to                                                               
decline as early as 1989 while  other evidence says it started in                                                               
1993. Clearly, by that time a  lot of disease issues were evident                                                               
and now  the population is  confronted with  either a viral  or a                                                               
fungal  disease   on  an  annual   basis.  One   disease  affects                                                               
recruiting  year classes  and the  other affects  the older  year                                                               
classes  and   probably  terminates  life  one   to  three  years                                                               
prematurely at the most reproductively capable age.                                                                             
                                                                                                                                
When  compared to  other populations,  the  Prince William  Sound                                                               
herring population is not showing  signs of recovery. Up and down                                                               
fluctuations are normal,  but for a population to  stay down this                                                               
long  is relatively  unusual. It  is  also fairly  unusual for  a                                                               
population  to be  limited by  disease for  this length  of time.                                                               
Although the links  aren't hard and fast, the  suggestion is that                                                               
the depressed population is oil related.                                                                                        
                                                                                                                                
SENATOR  DYSON asked  about the  report that  six miles  of beach                                                               
still have profound  residual oil and asked if  that includes any                                                               
of the beaches that were deliberately not remediated.                                                                           
                                                                                                                                
MR. RICE  explained that when  the beaches were selected  as part                                                               
of  the  2001   survey,  they  were  chosen   randomly  within  a                                                               
population of  heavily and moderately oiled  beaches. The beaches                                                               
that were in  the selection pool did not include  those that were                                                               
set aside to receive no remediation.                                                                                            
                                                                                                                                
He  elaborated  that the  statistical  measure  of oil  indicates                                                               
about six  miles of beach  inside Prince William Sound  only. The                                                               
distribution  of  oil  is  patchy  so the  six  miles  is  spread                                                               
throughout   the   sound   with  some   areas   showing   heavier                                                               
concentration than others.                                                                                                      
                                                                                                                                
One  thing that  surely wasn't  known in  1989 or  1991 when  the                                                               
settlement occurred  is that  the distribution  of oil  went down                                                               
into  the beach  in  depth as  well as  tidal  height. Today  the                                                               
majority of  oil is in the  mid zone. Mussels and  clams start in                                                               
that zone and  move down the beach meaning that  a lot of biology                                                               
and prey resources are in the oiled zone.                                                                                       
                                                                                                                                
SENATOR DYSON asked if there is  a consistent pattern of tide and                                                               
storm surges on the beaches that aren't recovering.                                                                             
                                                                                                                                
MR.  RICE replied  it's a  bit mixed,  but it's  not the  exposed                                                               
rocky beaches. It's  the more protected environments  such as the                                                               
Bay  of Isles,  Herring Bay,  Lower Pass,  and Northwest  Bay. In                                                               
those places you can dig four  or five inches down and after that                                                               
the oil  seeps in and  sometimes fills  the hole with  oil that's                                                               
the same  consistency as it  was in  1989. That's why  it's still                                                               
referred to  as toxic and mobile.  If an otter or  Harlequin Duck                                                               
disturbs that  sort of  environment it will  receive an  oil dose                                                               
exposure, he said.                                                                                                              
                                                                                                                                
4:24:20 PM                                                                                                                    
SENATOR DYSON asked which fish and mammals feed on herring.                                                                     
                                                                                                                                
MR. RICE replied if there is  a single most important fish, it is                                                               
herring  because   almost  everything  feeds  on   that  species.                                                               
Although most  birds feed  on herring, it's  the chicks  that are                                                               
dependent on  herring for  survival. Many  of the  marine mammals                                                               
are  in  the same  situation.  Humpback  Whales feed  on  herring                                                               
heavily in the winter, as do  sea lions and seals. Sea otters are                                                               
one  of the  rare species  not  connected to  herring; they  feed                                                               
almost exclusively on invertebrates.                                                                                            
                                                                                                                                
Herring is important  because it has a biology  that takes energy                                                               
from phytoplankton  and zooplankton, which is  unavailable to the                                                               
larger  species,  and absorbs  it  into  their bodies.  Then  the                                                               
herring makes itself available to predators.                                                                                    
                                                                                                                                
[LARRY  DIETRICK,  Director,  Division of  Spill  Prevention  and                                                               
Response,   Department  of   Environmental  Conservation   (DEC),                                                               
advised that a comprehensive synthesis  of all the science on the                                                               
condition of  the injured  resources in  Prince William  Sound is                                                               
available on the EVOS website. The list is sorted by species.]                                                                  
                                                                                                                                
4:26:20 PM                                                                                                                    
CHAIR WAGONER suggested amending  the resolution to remove "March                                                               
24, 2006, the  17th anniversary of the spill," from  page 3, line                                                               
10, and to insert "June 2, 2006" in its place.                                                                                  
                                                                                                                                
SEEKINS  moved  Amendment  1  as outlined  above.  There  was  no                                                               
objection and it was adopted.                                                                                                   
                                                                                                                                
4:27:33 PM at ease 4:29:07 PM                                                                                               
                                                                                                                                
SENATOR ELTON moved  to report CSSCR 17(RES)  from committee with                                                               
individual recommendations. There was no  objection and it was so                                                               
ordered.                                                                                                                        

Document Name Date/Time Subjects