03/23/1993 03:35 PM Senate TRA

  The  next order  of  business  to  come  before  the  Senate                 
  Transportation Committee was HJR 28 (SUPPORT  KANTISHNA AREA                 
  TOURISM DEVELOPMENT), sponsored by Representative Tom Brice.                 
                                                                               
  REPRESENTATIVE  BRICE explained  that  HJR  28 requests  the                 
                                                                               
                                                                               
  National Park Service  to establish a rail  utility corridor                 
  between the Healy  area and  the Kantishna mining  district.                 
  It endorses  the  idea of  private sector  development of  a                 
  railway into the Kantishna area as a tourism operation.                      
                                                                               
  SENATOR LINCOLN questioned  why there is a  zero fiscal note                 
  when  a  new  park is  being  built.   Representative  Brice                 
  referred  to  page  2,  line   15,  "FURTHER  RESOLVED  that                 
  appropriate state  agencies  should work  with the  National                 
  Park  Service  and  interested  members  of the  public  and                 
  private sectors  to thoroughly investigate  the potential of                 
  establishing a rail  utility corridor to Kantishna  in which                 
  the   private   sector  could   construct   and  operate   a                 
  transportation system and other facilities  that would serve                 
  the  public needs."   He  said the  resolution supports  the                 
  private sector in accomplishing the rail utility corridor.                   
                                                                               
  Number 393                                                                   
                                                                               
  IRENE MORRIS,  representing the Alaska  Environmental Lobby,                 
  testified against  HJR 28.   She  said during  this time  of                 
  severe  state  and  federal  budget  cuts,  the  cost  of  a                 
  potential  corridor cannot economically  be justified.   Ms.                 
  Morris said  the Denali Access  Task Force, in  its November                 
  1991 Report, found that the level  of business activity, new                 
  businesses,   visitation,  and   mining   did  not   justify                 
  additional access.  The same report  concluded a new road is                 
  not justifiable for  park purposes, wildlife, economics,  or                 
  visitor services.  The National Park Service has been buying                 
  private  inholdings  in  Kantishna  and  is opposed  to  new                 
  commercial  construction.    Ms.  Morris  said HJR  28  also                 
  suggests that  the private sector could build a rail utility                 
  corridor  into   Kantishna.    Currently,  DOT/PF   has  not                 
  evaluated  the  cost  of  such  a   railway  system.    Road                 
  construction  estimates were over $80 million  in 1992 and a                 
  rail  corridor would  be even  more  expensive.   Ms. Morris                 
  continued to give testimony against HJR 28.                                  
                                                                               
  Number 417                                                                   
                                                                               
  There being no  further testimony, SENATOR KELLY  moved that                 
  HJR 28 pass out of  the Senate Transportation Committee with                 
  individual recommendations.  SENATOR RANDY PHILLIPS objected                 
  for the purpose of stating that  people like to see the area                 
  in its natural state and that is  what attracts people.  The                 
  railroad  would detract from the  very thing that the people                 
  are trying to see in the first place.  He said  he would put                 
  his own recommendation in the committee report.                              
                                                                               
  SENATOR KERTTULA said  if the  right-of-way is acquired  for                 
  the facility  the right-of-way  should be  limited for  this                 
  particular use.   CHAIRMAN SHARP said  the way he reads  the                 
  resolution is that it is restricted to railroad access only.                 
  He asked if  there was objection to Senator  Kelly's motion.                 
                                                                               
                                                                               
  Hearing no objection,  the HJR  28 moved out  of the  Senate                 
  Transportation Committee.