Legislature(2013 - 2014)BUTROVICH 205

02/12/2013 09:00 AM STATE AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 1 ALASKA MINING DAY TELECONFERENCED
Moved SB 1 Out of Committee
*+ SB 2 INTERSTATE MINING COMPACT & COMMISSION TELECONFERENCED
Moved SB 2 Out of Committee
*+ SB 4 MILITARY TRAINING CREDIT TELECONFERENCED
Moved CSSB 4(STA) Out of Committee
                     SB 1-ALASKA MINING DAY                                                                                 
                                                                                                                                
9:03:16 AM                                                                                                                    
CHAIR DYSON  announced that the  bills before the  committee were                                                               
SB 1, SB 2, and SB 4. He  stated his preference to move the bills                                                               
out of committee.                                                                                                               
                                                                                                                                
9:03:30 AM                                                                                                                    
SENATOR  CATHY GIESSEL,  sponsor of  SB 1,  stated that  the bill                                                               
would establish May  10 as Alaska Mining Day. She  said that date                                                               
was chosen  because on May  10, 1872,  the General Mining  Act of                                                               
the  United  States  was   adopted.  She  highlighted  supporting                                                               
documents  in members'  packets.  She  noted that  a  lot of  the                                                               
infrastructure in  Alaska was built  by the mining  industry. The                                                               
most recent  example is the  Lake Dorothy Hydroelectric  Dam near                                                               
Juneau, which was needed because of the Greens Creek Mine.                                                                      
                                                                                                                                
SENATOR GIESSEL pointed out that  Alaska has a significant amount                                                               
of rare  earth elements, such  as those found in  Bokan Mountain.                                                               
She  spoke  of  an  education   program  called  Alaska  Resource                                                               
Education  that provides  schools  with  information about  mined                                                               
elements used for technology equipment.                                                                                         
                                                                                                                                
9:06:53 AM                                                                                                                    
CHAIR  DYSON asked  if other  mining states  have done  something                                                               
similar.                                                                                                                        
                                                                                                                                
SENATOR GIESSEL did not know.                                                                                                   
                                                                                                                                
9:07:24 AM                                                                                                                    
ED FOGELS, Deputy Commissioner,  Department of Natural Resources,                                                               
testified in support  of SB 1. He related that  mining has paid a                                                               
critical  role  in  Alaska's  history   and  economy.  He  shared                                                               
statistics about  the benefits  of mining  to Alaska.  Mining has                                                               
provided  over  4,000  highly skilled  jobs,  each  that  average                                                               
$100,000 per year. He talked about  the tax benefits from the Red                                                               
Dog and Donlin Mines.                                                                                                           
                                                                                                                                
He said that a large part of his  job is to ensure that the seven                                                               
operating  mines are  in environmental  compliance. He  described                                                               
efforts to  strengthen the mining  sector, such as  the Strategic                                                               
and Critical  Minerals Initiative. He spoke  of new opportunities                                                               
in  mining.  He  thought  it  wise  to  remind  Alaskans  of  the                                                               
importance of mining by having an Alaska Mining Day.                                                                            
                                                                                                                                
9:09:58 AM                                                                                                                    
CHAIR DYSON suggested there was  more mining activity in the last                                                               
ten years,  than in the  past. He stated  that some of  the mines                                                               
are  world  class. He  asked  if  most  mines are  financed  with                                                               
Canadian money.                                                                                                                 
                                                                                                                                
MR. FOGELS  agreed with  that analysis. He  said that  mining has                                                               
increased rapidly  over the  last 20 years.  He recalled  that 25                                                               
years ago Greens Creek and Red  Dog were just starting up and the                                                               
only other  mine in  the state  was Usibelli  coal mine.  He said                                                               
there are currently  seven active mines and two  more large mines                                                               
in the permitting  process. He agreed that  a considerable amount                                                               
of  investment  money  is  Canadian,  but  said  some  mines  are                                                               
financed by American dollars, such as Pogo and Kensington.                                                                      
                                                                                                                                
CHAIR DYSON asked how mines are taxed.                                                                                          
                                                                                                                                
MR. FOGELS listed  the number of ways the state  taxes mines: a 3                                                               
percent royalty  on profits,  a 9  percent corporate  income tax,                                                               
and a 7 percent mining license  tax. The royalty would only apply                                                               
if  the mine  is on  state land.  He pointed  out that  there are                                                               
localized  benefits  from the  mines  in  the  form of  jobs  and                                                               
property taxes.                                                                                                                 
                                                                                                                                
CHAIR DYSON asked if those are taxes on profits.                                                                                
                                                                                                                                
MR. FOGELS said yes.                                                                                                            
                                                                                                                                
9:12:40 AM                                                                                                                    
DEANTHA CROCKETT,  Executive Director, Alaska  Miners Association                                                               
(AMA),  provided  the background  of  AMA  and its  members.  She                                                               
provided  data about  the economic  benefits  the state  receives                                                               
from AMA. She testified in support of SB 1.                                                                                     
                                                                                                                                
SENATOR GIESSEL  requested that Ms. Crockett  review the economic                                                               
benefits of mining to the Native Corporations.                                                                                  
                                                                                                                                
MS.  CROCKETT  described  the economic  benefits  to  the  Nenana                                                               
Corporation from the  Red Dog Mine. The Red Dog  Mine is the only                                                               
taxpayer  in  the  Northwest  Artic Borough.  She  said  that  60                                                               
percent of  the jobs at the  Red Dog Mine are  Nenana Corporation                                                               
shareholders  and  90 percent  of  the  jobs  at Donlin  will  be                                                               
shareholders.                                                                                                                   
                                                                                                                                
CHAIR  DYSON shared  a view  that the  Red Dog  project was  well                                                               
done. He  mentioned Teck Cominco  mine-related benefits,  such as                                                               
training,  low fuel  rates, the  clinic, the  airport, and  barge                                                               
transportation, all which help the locals, as well.                                                                             
                                                                                                                                
MS. CROCKETT  added that the  mine has been very  instrumental in                                                               
helping with evacuating villagers during major storms.                                                                          
                                                                                                                                
9:17:02 AM                                                                                                                    
MICHAEL SATRE,  Executive Director, Council of  Alaska Producers,                                                               
related  that  he  represents  large-producing  metal  mines.  He                                                               
stated  full  support  for  SB  1. He  wished  to  recognize  the                                                               
individuals who  contributed to the mine  industry. He recognized                                                               
David Stone as being a premier supporter of mining.                                                                             
                                                                                                                                
9:18:56 AM                                                                                                                    
SENATOR COGHILL  moved to  report SB  1, labeled  LS-0001\U, from                                                               
committee  with  individual  recommendations  and  attached  zero                                                               
fiscal note.  There being  no objection, SB  1 was  reported from                                                               
the Senate State Affairs Standing Committee.                                                                                    
                                                                                                                                
SENATOR GIESSEL noted there was a zero fiscal note.                                                                             

Document Name Date/Time Subjects
SB 1 - Sponsor Statement.pdf SSTA 2/12/2013 9:00:00 AM
SB 1
SB 1 - 001 Version U.pdf SSTA 2/12/2013 9:00:00 AM
SB 1
SB 1 - Overview of Mining in AK LR13-156.pdf SSTA 2/12/2013 9:00:00 AM
SB 1
SB 1- Letter of Support AMA.pdf SSTA 2/12/2013 9:00:00 AM
SB 1
SB 1 - Letter of Supporty CAP.pdf SSTA 2/12/2013 9:00:00 AM
SB 1
SB 1 - Support - 2011 Gov Parnell Mining Day Proclamation 041411.pdf SSTA 2/12/2013 9:00:00 AM
SB 1
SB 2 - Sponsor Statement.pdf SSTA 2/12/2013 9:00:00 AM
SB 2
SB 2 - Bill version 0005A.pdf SSTA 2/12/2013 9:00:00 AM
SB 2
SB 2 - Sectional.pdf SSTA 2/12/2013 9:00:00 AM
SB 2
SB 2 - Interstate Mining Compact Commission Website.pdf SSTA 2/12/2013 9:00:00 AM
SB 2
SB 2 - IMCC Dues Assessments 2014 and 2015.pdf SSTA 2/12/2013 9:00:00 AM
SB 2
SB 2 - Letter of Support AMA.pdf SSTA 2/12/2013 9:00:00 AM
SB 2
SB 2 - Letter of Support CAP.pdf SSTA 2/12/2013 9:00:00 AM
SB 2
SB 2 - IMCC 2011 Annual Report.pdf SSTA 2/12/2013 9:00:00 AM
SB 2
SB 2 - Letter of Support Resource Devlp Cncl.pdf SSTA 2/12/2013 9:00:00 AM
SB 2
SB 4 - Sponsor Statement.pdf SSTA 2/12/2013 9:00:00 AM
SB 4
SB 4 - Military Training Credit.Version U.pdf SSTA 2/12/2013 9:00:00 AM
SB 4
SB 4 - Sectional Analysis.pdf SSTA 2/12/2013 9:00:00 AM
SB 4
SB 4 - One Page Briefing.pdf SSTA 2/12/2013 9:00:00 AM
SB 4
SB 4 - Support Letter.Ed Kringer at DoD.pdf SSTA 2/12/2013 9:00:00 AM
SB 4
SB4 - Support letter.Vietnam Veterans of America.pdf SSTA 2/12/2013 9:00:00 AM
SB 4
SB 4 Fiscal Note SB004-DCCED-CBPL-02-09-13.pdf SSTA 2/12/2013 9:00:00 AM
SB 4
SB 4 Fiscal Note SB004-DOLWD-WIB-2-8-13.pdf SSTA 2/12/2013 9:00:00 AM
SB 4
SB 1 Fiscal Note SB001-DOA-FAC-2-08-13.pdf SSTA 2/12/2013 9:00:00 AM
SB 1
SB 2 Fiscal Note SB002-DNR-MLW-2-9-13.pdf SSTA 2/12/2013 9:00:00 AM
SB 2
SB 2 Fiscal Note SB002-DOA-DRB-1-22-13.pdf SSTA 2/12/2013 9:00:00 AM
SB 2
SB 2 - Letter of Support Mr. Steffy.pdf SSTA 2/12/2013 9:00:00 AM
SB 2
SB 4 Fiscal Note SB004-UA-SYSBRA-2-12-13.pdf SSTA 2/12/2013 9:00:00 AM
SB 4