Legislature(1999 - 2000)

02/16/2000 01:05 PM House RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
              HOUSE RESOURCES STANDING COMMITTEE                                                                                
                      February 16, 2000                                                                                         
                          1:05 p.m.                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
BRIEFING:  ALASKA MINERALS COMMISSION                                                                                           
                                                                                                                                
TAPES                                                                                                                           
                                                                                                                                
00-9                                                                                                                            
SIDE(S) A & B                                                                                                                   
                                                                                                                                
CALL TO ORDER                                                                                                                   
                                                                                                                                
REPRESENTATIVE  BILL  HUDSON,   Co-Chair,  convened  the  House                                                                 
Resources Standing Committee meeting at 1:05 p.m.                                                                               
                                                                                                                                
PRESENT                                                                                                                         
                                                                                                                                
Committee members  present were Representatives  Masek, Hudson,                                                                 
Joule, Whitaker, Harris, Barnes and Morgan.                                                                                     
                                                                                                                                
SUMMARY OF INFORMATION                                                                                                          
                                                                                                                                
IRENE ANDERSON, Alaska Minerals  Commission, explained that the                                                                 
commission's number-one  concern is the crisis  on the issuance                                                                 
of  permits from  exploration  to development.   She  suggested                                                                 
that  the  Alaska  State  Legislature,  the  Governor  and  the                                                                 
Department  of Environmental Conservation  (DEC) work  together                                                                 
for a solution.                                                                                                                 
                                                                                                                                
KARL  HANNEMAN, Alaska  Minerals Commission,  commented on  the                                                                 
report  the commission  came  out  with in  January  2000.   He                                                                 
explained that  the report usually includes  recommendations to                                                                 
the legislature,  but this year  focuses on permit  issuance at                                                                 
the  DEC and  fees for  services.   He  further explained  that                                                                 
there is dire need for an effective permitting program.                                                                         
                                                                                                                                
REPRESENTATIVE  JOULE asked  Mr. Hanneman  and Ms. Anderson  to                                                                 
comment on what is happening in  the industry right now as well                                                                 
as the situation at the DEC and its permitting process.                                                                         
                                                                                                                                
MR. HANNEMAN explained  that there is a lot of  activity in the                                                                 
mining industry right now, specifically  with the Red Dog Mine.                                                                 
He said it is important to  maintain competent personnel at the                                                                 
DEC, but that they could contract  out on projects as well.  He                                                                 
explained  that  recommendations  take  money  and  that  there                                                                 
should possibly  be priorities  within recommendations.   Along                                                                 
with a  long-range fiscal  plan, there  needs to  be a  bill to                                                                 
address the fees issue.                                                                                                         
                                                                                                                                
CHARLOTTE  MACCAY, Alaska Minerals  Commission, explained  that                                                                 
existing projects  as well  as new  projects need  a permitting                                                                 
process that does not give room for hidden costs or payments.                                                                   
                                                                                                                                
NIEL MCKINNON,  Alaska Minerals  Commission, discussed  how the                                                                 
State of Alaska collects money on mining claim rent.                                                                            
                                                                                                                                
TOM  IRWIN, General  Manager,  Fort  Knox Mine,  discussed  the                                                                 
benefits  to  the  community  from  the Fort  Knox  Mine.    He                                                                 
explained that  they net  about $107 million  and much  of that                                                                 
goes back into the community.   He is not asking for shortcuts,                                                                 
but protection that is strong and credible.                                                                                     
                                                                                                                                
STEVE BORELL,  Executive Director,  Alaska Miners  Association,                                                                 
credited  the  importance  of the  Alaska  Minerals  Commission                                                                 
report.   He  explained that  metals pricing  is improving  and                                                                 
that the  industry is  seeing growth.   There are  50,000 total                                                                 
claims within the  state.  He further explained  that right-of-                                                                 
way access is crucial for the mining industry.                                                                                  
                                                                                                                                
REPRESENTATIVE  BARNES  commented   that  the  only  economical                                                                 
development  project during  the  Sheffield Administration  was                                                                 
the Red Dog Mine, and it is a success story.                                                                                    
                                                                                                                                
COMMITTEE ACTION                                                                                                                
                                                                                                                                
The  committee  took  no  action during  this  portion  of  the                                                                 
meeting.                                                                                                                        
                                                                                                                                
ADJOURNMENT                                                                                                                     
                                                                                                                                
CO-CHAIR HUDSON ended this portion  of the meeting at 2:30 p.m.                                                                 
[See  the  House  Resources   Standing  Committee  minutes  for                                                                 
February  16,   2000,  2:30  p.m.,  for   discussion  regarding                                                                 
legislation.]                                                                                                                   
                                                                                                                                
NOTE:                                                                                                                           
                                                                                                                                
The meeting was recorded and  handwritten log notes were taken.                                                                 
A  copy  of the  tape(s)  and  log  notes  may be  obtained  by                                                                 
contacting the  House Records Office  at 129 6th  Street, Suite                                                                 
229,  Juneau,   Alaska    99801,  (907)  465-2214,   and  after                                                                 
adjournment of  the second session  of the  Twenty-first Alaska                                                                 
State  Legislature   this  information   may  be   obtained  by                                                                 
contacting the Legislative Reference Library at 129 6th                                                                         
Street, Suite 102, Juneau, Alaska  99801, (907) 465-3808.                                                                       
                                                                                                                                

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