Legislature(1999 - 2000)

04/05/2000 01:07 PM House RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
               HOUSE RESOURCES STANDING COMMITTEE                                                                               
                          April 5, 2000                                                                                         
                            1:07 p.m.                                                                                           
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                                 
                                                                                                                                
Representative Bill Hudson, Co-Chair                                                                                            
Representative Beverly Masek, Co-Chair                                                                                          
Representative John Cowdery, Vice Chair                                                                                         
Representative John Harris                                                                                                      
Representative Carl Morgan                                                                                                      
Representative Ramona Barnes                                                                                                    
Representative Jim Whitaker                                                                                                     
Representative Reggie Joule                                                                                                     
Representative Mary Kapsner                                                                                                     
                                                                                                                                
MEMBERS ABSENT                                                                                                                  
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
CONFIRMATION HEARINGS:                                                                                                          
                                                                                                                                
Board of Fisheries                                                                                                            
                                                                                                                                
     Larry J. Engel - Palmer                                                                                                    
     Robert E. Dersham - Anchor Point                                                                                           
                                                                                                                                
     - CONFIRMATIONS ADVANCED                                                                                                   
                                                                                                                                
HOUSE JOINT RESOLUTION NO. 60                                                                                                   
Opposing the designation of millions of acres of Alaska as                                                                      
critical habitat for the Spectacled Eider and the Steller's                                                                     
Eider.                                                                                                                          
                                                                                                                                
     - MOVED HJR 60 OUT OF COMMITTEE                                                                                            
                                                                                                                                
PREVIOUS ACTION                                                                                                                 
                                                                                                                                
BILL: HJR 60                                                                                                                  
SHORT TITLE: HABITAT FOR ENDANGERED EIDER DUCKS                                                                                 
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 3/30/00      2787     (H)  READ THE FIRST TIME - REFERRALS                                                                     
 3/30/00      2787     (H)  RES                                                                                                 
 3/30/00      2787     (H)  REFERRED TO RESOURCES                                                                               
 4/05/00               (H)  RES AT  1:00 PM CAPITOL 124                                                                         
                                                                                                                                
WITNESS REGISTER                                                                                                                
                                                                                                                                
LARRY ENGEL, Appointee                                                                                                          
   to the Board of Fisheries                                                                                                    
P.O. Box 197                                                                                                                    
Palmer, Alaska  99645                                                                                                           
POSITION STATEMENT:  Testified as appointee to the Board of                                                                     
Fisheries.                                                                                                                      
                                                                                                                                
ROBERT DERSHAM, Appointee                                                                                                       
   to the Board of Fisheries                                                                                                    
P.O. Box 555                                                                                                                    
Anchor Point, Alaska  99556                                                                                                     
POSITION STATEMENT:  Testified as appointee to the Board of                                                                     
Fisheries.                                                                                                                      
                                                                                                                                
REPRESENTATIVE GAIL PHILLIPS                                                                                                    
Alaska State Legislature                                                                                                        
Capitol Building, Room 411                                                                                                      
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  Testified in support of the confirmation for                                                               
Robert Dersham; introduced HJR 60.                                                                                              
                                                                                                                                
RON SOMERVILLE, Resource Consultant                                                                                             
Senate and House Majorities                                                                                                     
Alaska State Legislature                                                                                                        
4506 Robbie Road                                                                                                                
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  Provided information on critical habitat                                                                   
designations with regard to HJR 60.                                                                                             
                                                                                                                                
SCOTT PETSEL, Staff                                                                                                             
   for Representative Gail Phillips                                                                                             
Alaska State Legislature                                                                                                        
Capitol Building, Room 411                                                                                                      
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  Answered questions with regard to HJR 60.                                                                  
                                                                                                                                
TADD OWENS, Project Coordinator                                                                                                 
Resource Development Counsel (RDC)                                                                                              
121 West Fireweed, Number 250                                                                                                   
Anchorage, Alaska  99504                                                                                                        
POSITION STATEMENT:  Testified in support of HJR 60.                                                                            
                                                                                                                                
MARILYN CROCKETT, Deputy Director                                                                                               
Alaska Oil and Gas Association (AOGA)                                                                                           
121 West Fireweed, Number 207                                                                                                   
Anchorage, Alaska  99504                                                                                                        
POSITION STATEMENT:  Testified in support of HJR 60.                                                                            
                                                                                                                                
OLIVER LEAVITT, Vice President                                                                                                  
Arctic Slope Regional Corporation (ASRC)                                                                                        
P.O. Box 129                                                                                                                    
Barrow, Alaska  99723                                                                                                           
POSITION STATEMENT:  Testified in support of HJR 60.                                                                            
                                                                                                                                
CHARLES BROWER, Director of Wildlife Management                                                                                 
North Slope Borough                                                                                                             
P.O. Box 69                                                                                                                     
Barrow, Alaska  99723                                                                                                           
POSITION STATEMENT:  Testified in support of HJR 60.                                                                            
                                                                                                                                
ROBERT SUDYAM, Wildlife Biologist                                                                                               
Department of Wildlife Management                                                                                               
North Slope Borough                                                                                                             
P.O. Box 69                                                                                                                     
Barrow, Alaska  99723                                                                                                           
POSITION STATEMENT:  Testified in support of HJR 60.                                                                            
                                                                                                                                
HARRY BROWER, JR., Hunter from Barrow                                                                                           
P.O. Box 69                                                                                                                     
Barrow, Alaska  99723                                                                                                           
POSITION STATEMENT:  Testified in support of HJR 60.                                                                            
                                                                                                                                
WAYNE REGELIN, Director                                                                                                         
Division of Wildlife Conservation                                                                                               
Alaska Department of Fish & Game                                                                                                
P.O. Box 25526                                                                                                                  
Juneau, Alaska  99802-5526                                                                                                      
POSITION STATEMENT:  Testified in support of HJR 60.                                                                            
                                                                                                                                
ACTION NARRATIVE                                                                                                                
                                                                                                                                
TAPE 00-31, SIDE A                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
CO-CHAIR  HUDSON called  the  House Resources  Standing  Committee                                                              
meeting to  order at  1:07 p.m.   Members present  at the  call to                                                              
order  were   Representatives  Hudson,  Masek,   Cowdery,  Harris,                                                              
Whitaker and  Joule.  Representatives  Barnes, Morgan  and Kapsner                                                              
arrived as the meeting was in progress.                                                                                         
                                                                                                                                
CONFIRMATION HEARINGS - Board of Fisheries                                                                                    
                                                                                                                                
CO-CHAIR HUDSON  announced that the  committee would  consider two                                                              
appointees to the Board of Fisheries.   He first called upon Larry                                                              
Engel.                                                                                                                          
                                                                                                                                
Number 0160                                                                                                                     
                                                                                                                                
LARRY ENGEL,  Appointee to the  Board of Fisheries,  testified via                                                              
teleconference  from Palmer.   He  indicated  that fisheries  have                                                              
been a big  part of his life  since his early childhood.   He grew                                                              
up in  Washington, where his  family fished commercially  for many                                                              
years.   He came  to Alaska  in the  Navy and  later attended  the                                                              
University  of Washington,  College  of Fisheries;  he joined  the                                                              
Alaska  Department of  Fish  & Game  (ADF&G)  in  1960 and  worked                                                              
continuously as  a fisheries biologist  until retirement  in 1992.                                                              
He  said   that  after  retirement   he  worked  for   the  Mat-Su                                                              
[Matanuska-Susitna]   Borough  on   various  contractual   matters                                                              
relating to  fisheries.   He was first  appointed to the  Board of                                                              
Fisheries by Governor  Walter Hickel in 1994,  and was reappointed                                                              
by Governor Tony Knowles.  This would  be his third appointment to                                                              
the board.                                                                                                                      
                                                                                                                                
CO-CHAIR HUDSON indicated  that he has heard Mr.  Engel's previous                                                              
testimonials  and watched  his  participation  on the  board.   He                                                              
thinks that  it must  take a tremendous  amount of willpower  when                                                              
dealing with  some of the  issues that  come before the  board and                                                              
appreciates Mr. Engel's willingness to continue the service.                                                                    
                                                                                                                                
REPRESENTATIVE   HARRIS  said   he   would  like   to  echo   what                                                              
Representative Hudson  just said.   He believes that Mr.  Engel is                                                              
very qualified and  admires the fact that [board  members] spend a                                                              
lot of time on the road when it is on a volunteer basis.                                                                        
                                                                                                                                
Number 0384                                                                                                                     
                                                                                                                                
CO-CHAIR  MASEK  said  she  also  feels that  Mr.  Engel  does  an                                                              
outstanding  job.  She  made a  motion to  move the nomination  of                                                              
Larry Engel  to the Board  of Fisheries  out of committee.   There                                                              
being no objection, the confirmation was advanced.                                                                              
                                                                                                                                
CO-CHAIR HUDSON  announced that the  next order of  business would                                                              
be the confirmation of Robert Dersham.                                                                                          
                                                                                                                                
ROBERT DERSHAM,  Appointee  to the Board  of Fisheries,  testified                                                              
via teleconference from Homer.  He  said that he has been involved                                                              
in the fisheries  in Alaska for a  little over 20 years.   He is a                                                              
fishing charter  operator and lodge  owner.  He has  been involved                                                              
in the  issues regarding  fisheries for almost  15 years,  and for                                                              
the last three years he has served  on the Board of Fisheries.  In                                                              
that three-year time  period, they have completed  one whole cycle                                                              
[of meetings], around  all the state.  He has learned  a lot about                                                              
the fisheries,  and he  has enjoyed working  with the  other board                                                              
members  and  with  the  stakeholders  to  try  to  resolve  their                                                              
allocation  disputes  and deal  with  conservation  problems.   If                                                              
confirmed for  another term, he  looks forward to  continuing that                                                              
effort.                                                                                                                         
                                                                                                                                
Number 0608                                                                                                                     
                                                                                                                                
REPRESENTATIVE GAIL PHILLIPS, Alaska  State Legislature, indicated                                                              
that she has  known Mr. Dersham for  many years and has  worked on                                                              
many issues  with him relating  to the  fisheries in Alaska.   She                                                              
stressed that Mr. Dersham is a very  good addition to the Board of                                                              
Fisheries.   One of  the success  stories during  his term  on the                                                              
board  is the  "committee  process"  that  has allowed  the  local                                                              
advisory groups  to have  far greater  input into decisions  being                                                              
made.  She thinks  he has done an excellent job,  and she supports                                                              
his nomination.                                                                                                                 
                                                                                                                                
CO-CHAIR  HUDSON agreed  with Representative  Phillips and  voiced                                                              
his appreciation for  [board members'] ability to put  up with the                                                              
contention.   He pointed  out that  they are  in a very  difficult                                                              
position   and  a  very   important  one,   especially  now   that                                                              
subsistence has rolled over to the federal side.                                                                                
                                                                                                                                
CO-CHAIR MASEK  wondered how  Mr. Dersham  felt about the  halibut                                                              
Individual  Fishing Quota  (IFQ)  in terms  of  the North  Pacific                                                              
Fishery Management Council (NPFMC) issue.                                                                                       
                                                                                                                                
MR. DERSHAM  indicated that he has  been involved with  that issue                                                              
since  the   very  beginning.     From  the  Board   of  Fisheries                                                              
perspective, they  have been trying  to assist the  development of                                                              
local area management plans for the  different areas of the state;                                                              
that has been his focus recently.   Until the NPFMC took its final                                                              
action  in February  on  the Guideline  Harvest  Level (GHL),  the                                                              
local area  management process  was on hold  because they  did not                                                              
know what  the NPFMC was  going to do.   He thinks that  the NPFMC                                                              
made some interim decisions that  were probably the best decisions                                                              
they  could  make under  the  circumstances.   A  big  determining                                                              
factor will  be how  the IFQ shakes  out.  They  are hoping  to do                                                              
that within two  years.  At first, there was a  lot of support for                                                              
the IFQ from all the user groups,  but now, as time goes by, there                                                              
is  opposition  from people  who  had  not  been involved  in  the                                                              
process in the past.                                                                                                            
                                                                                                                                
MR. DERSHAM noted that in the meantime,  the Board of Fisheries is                                                              
working on the local area management  plan.  The main thing coming                                                              
out of  that with  regard to  halibut is  that local depletion  is                                                              
starting to be an  issue.  The biology is starting  to support the                                                              
idea that  [halibut] have  a lot of fidelity  to the  same feeding                                                              
ground once they  reach a certain size, which  means that wherever                                                              
there is a  lot of fishing pressure  in the same area,  year after                                                              
year, there is going to be depletion.                                                                                           
                                                                                                                                
Number 1054                                                                                                                     
                                                                                                                                
CO-CHAIR  MASEK made  a motion to  move the  nomination of  Robert                                                              
Dersham to the  Board of Fisheries out of committee.   There being                                                              
no objection, the confirmation was advanced.                                                                                    
                                                                                                                                
HJR 60 - HABITAT FOR ENDANGERED EIDER DUCKS                                                                                   
                                                                                                                                
Number 1100                                                                                                                     
                                                                                                                                
CO-CHAIR HUDSON  announced that the  next order of  business would                                                              
be  HOUSE JOINT  RESOLUTION NO.  60, opposing  the designation  of                                                              
millions  of  acres   of  Alaska  as  critical   habitat  for  the                                                              
Spectacled Eider  and the Steller's  Eider.  [It was  sponsored by                                                              
the House Resources Standing Committee.]                                                                                        
                                                                                                                                
REPRESENTATIVE  GAIL PHILLIPS,  Alaska  State Legislature,  stated                                                              
that in February  of this year they  heard that the U.S.  Fish and                                                              
Wildlife Service  (USFWS) was  going to propose  a rule  change to                                                              
designate huge marine areas of Alaska  as critical habitat for the                                                              
Spectacled  Eider and  the  Steller's Eider.    The proposed  rule                                                              
change would take up 75,000 square  miles; it is primarily Alaskan                                                              
coastline but  also includes a huge  amount of land  bordering the                                                              
National Petroleum  Reserve-Alaska (NPR-A)  on the North  Slope, a                                                              
huge amount in the Yukon-Kuskokwim  Delta, a huge amount inland on                                                              
the Seward Peninsula, a huge amount  on the Bering Sea, almost all                                                              
of  Cook Inlet,  almost  all surrounding  Kodiak  Island, and  all                                                              
surrounding the Aleutian Chain.                                                                                                 
                                                                                                                                
REPRESENTATIVE  PHILLIPS  stressed that  it is  one  of the  worst                                                              
rulings  that  has come  out  of USFWS  -  to declare  a  critical                                                              
habitat  area   this  intense  -   since  she  has  been   in  the                                                              
legislature.  The eiders were listed  under the Endangered Species                                                              
Act (ESA) as threatened in the early  1990s.  At that time, it was                                                              
not  considered prudent  to  establish critical  habitat,  because                                                              
potential habitat lost is not considered  a factor in the recovery                                                              
of the species.  In September of  last year, the [U.S.] Department                                                              
of Interior entered into an agreement  to reevaluate this critical                                                              
habitat  determination  based  on  a lawsuit  by  a  coalition  of                                                              
environmental  groups and  the previous  court rulings to  similar                                                              
cases   that    overturned   critical   habitat    determinations.                                                              
Therefore, HJR 60 says that the Alaska  State Legislature does not                                                              
support the critical habitat designation;  they are requesting the                                                              
Governor  to  pursue  legal  action   against  the  USFWS  if  the                                                              
regulations are adopted, and it urges  the delegation to assist in                                                              
blocking the adoption of the final regulation.                                                                                  
                                                                                                                                
REPRESENTATIVE  PHILLIPS  further stated  that  she  had met  with                                                              
[U.S.] Senator Stevens specifically  and had made him aware of the                                                              
issue.  His comment was that this  is such a huge issue and such a                                                              
huge designation  of land  withdrawal in Alaska  that it  would be                                                              
the three of  them - U.S. Senator Stevens, U.S.  Senator Murkowski                                                              
and Congressman  Young - who would  take up the fight.   She noted                                                              
that  the designation  of critical  habitat in  those areas  would                                                              
adversely  affect resource  development,  subsistence,  commercial                                                              
fishing  and just  about  everything  else in  those  areas.   The                                                              
proposed  ruling  fails  to  identify  the areas  that  are  truly                                                              
necessary for  recovery of  the species;  therefore, they  are not                                                              
getting  at  what they  intended  to  get  at, by  these  proposed                                                              
rulings.  She stressed that Alaska  needs to send a strong message                                                              
that there has been enough land withdrawn in Alaska already.                                                                    
                                                                                                                                
CO-CHAIR  MASEK wondered  how the Administration  feels about  the                                                              
issue.                                                                                                                          
                                                                                                                                
REPRESENTATIVE  PHILLIPS indicated  that  she has  not heard  from                                                              
them.                                                                                                                           
                                                                                                                                
[Representative  Kapsner  indicated  that  they  were  invited  to                                                              
attend this meeting.]                                                                                                           
                                                                                                                                
REPRESENTATIVE PHILLIPS  stated that they  have not had  an attack                                                              
on  lands in  Alaska this  large since  the Carter  Administration                                                              
"lock-up."                                                                                                                      
                                                                                                                                
CO-CHAIR HUDSON pointed out that  the "WHEREAS" on page 2, line 4,                                                              
indicates  that 65  percent  of the  area  designated as  critical                                                              
habitat  is already  within  federal  wildlife refuges,  and  this                                                              
current  designation would  pretty much  lock up  the rest  of the                                                              
state except for a few areas in Southeast Alaska.                                                                               
                                                                                                                                
REPRESENTATIVE  WHITAKER wondered  what they  can do  to stop  the                                                              
critical habitat designation from  occurring, other than [passing]                                                              
a resolution.                                                                                                                   
                                                                                                                                
Number 1526                                                                                                                     
                                                                                                                                
RON SOMERVILLE, Resource Consultant,  Senate and House Majorities,                                                              
Alaska State  Legislature,  responded that  the ESA requires  that                                                              
critical habitat be  designated for any species that  is listed as                                                              
threatened or endangered.   The agencies have avoided  that in the                                                              
past because  if they determine  that the designation  of critical                                                              
habitat does not really enhance the  recovery of the species, then                                                              
they avoid that.  He pointed out  that it is probably an oversight                                                              
by the agencies.   That is why the court cases  recently have been                                                              
focused   on  the   identification   of  critical   habitat;   the                                                              
implementation  of  how the  critical  habitat  would fit  into  a                                                              
recovery  plan for a  particular  species has  a lot of  unknowns,                                                              
whereas the taking of a species that  is endangered has been dealt                                                              
with a lot  in the courts.   It has been the missing  element that                                                              
the environmental community looks upon.                                                                                         
                                                                                                                                
MR. SOMERVILLE  stressed that one  thing that they are  being told                                                              
by the  USFWS is "the establishment  of critical habitat  does not                                                              
mean  anything,"  which Mr.  Somerville  said  is  not true.    He                                                              
indicated that in the packet there  is a memorandum from Bill Horn                                                              
which  points out  that under  existing  law the  only thing  that                                                              
requires  an approval by  the USFWS  for an  activity would  be if                                                              
someone  were actually  "taking" an  animal.   He referred  to the                                                              
Northern Spotted  Owl as an example  and said that the  impacts of                                                              
that designation on  private lands was phenomenal.   For instance,                                                              
it had  a tremendous impact  on the ability  of people  to harvest                                                              
their own  timber on  private lands,  even though  it was  unclear                                                              
what the critical habitat designation meant.                                                                                    
                                                                                                                                
MR.  SOMERVILLE  said the  same  is true  here.   All  the  marine                                                              
habitat of both  the Spectacled Eider and Steller's  Eider that is                                                              
designated as critical habitat is  really based upon the fact that                                                              
an animal  or bird  may have  been seen  there at  one time.   Any                                                              
activity on the  private lands in the lower  Yukon-Kuskokwim Delta                                                              
or  south  of Barrow  would  require  an  approval by  the  USFWS,                                                              
regardless  of whether  the activity  impacted the  species.   Mr.                                                              
Somerville emphasized  that he does  not want anyone to  be misled                                                              
into  believing that  the critical  habitat  designation does  not                                                              
affect private land or that it does  not mean anything, because it                                                              
does.                                                                                                                           
                                                                                                                                
Number 1764                                                                                                                     
                                                                                                                                
REPRESENTATIVE  PHILLIPS pointed  out that  Kachemak Bay  has been                                                              
designated  as a critical  habitat area.   There, residents  would                                                              
like  to put  in  small  test-site clam  farms.   There  are  over                                                              
700,000 acres of  shoreline in Kachemak Bay, and  they want to put                                                              
in a 10-acre  clam farms.  The  ADF&G is forbidding it  because it                                                              
is  a  critical  habitat  area.   However,  the  critical  habitat                                                              
designation has  no reference  to whether they  can or  cannot; it                                                              
says that it is open to all uses.                                                                                               
                                                                                                                                
Number 1833                                                                                                                     
                                                                                                                                
SCOTT  PETSEL,  Staff for  Representative  Gail  Phillips,  Alaska                                                              
State  Legislature,  indicated that  the  U.S. Department  of  the                                                              
Interior and  the ADF&G  are having hearings  on May 8,  2000, and                                                              
the comment period  will end; therefore, if  [legislators] believe                                                              
strongly,  they  should  encourage  their  constituents  to  write                                                              
letters  in opposition  to the critical  habitat designation,  and                                                              
[legislators] should write letters themselves.                                                                                  
                                                                                                                                
REPRESENTATIVE WHITAKER  stated, "The process itself  is a federal                                                              
function."   He  asked, "The  determination  will be  made by  the                                                              
[U.S.] Fish  & Wildlife Service, as  approved by whom?   Where can                                                              
this be stopped?"                                                                                                               
                                                                                                                                
MR. SOMERVILLE  indicated that  the decision will  be made  by the                                                              
USFWS subject to  some oversight by the court.   He explained that                                                              
it can  be stopped  by asking  the delegation  to makes  sure that                                                              
certain instructions  are given to  the agencies as it  relates to                                                              
critical habitat.                                                                                                               
                                                                                                                                
Number 1930                                                                                                                     
                                                                                                                                
REPRESENTATIVE  KAPSNER wondered how  the designation  will affect                                                              
the people in her area.                                                                                                         
                                                                                                                                
MR. SOMERVILLE  pointed out  that Natives  are excluded  from most                                                              
regulations  under  the  ESA,  so  it  will  not  affect  most  of                                                              
Representative Kapsner's constituents.                                                                                          
                                                                                                                                
REPRESENTATIVE  KAPSNER  noted  that   she  also  represents  non-                                                              
Natives; for example,  her dad is a non-Native.   She wondered how                                                              
the designation might  affect someone like her dad  from going out                                                              
and subsistence hunting.                                                                                                        
                                                                                                                                
MR. SOMERVILLE  indicated that  it would  affect someone  like her                                                              
dad.   He explained  that "taking" is  already effective  when the                                                              
animal is listed as endangered or threatened.                                                                                   
                                                                                                                                
REPRESENTATIVE  KAPSNER  clarified that  she  was wondering  about                                                              
other hunting of unendangered animals.                                                                                          
                                                                                                                                
MR. SOMERVILLE  referred to the  proposal in the  committee packet                                                              
where it  reads, "Such activities  that may have the  potential to                                                              
destroy  or  adversely  affect  or  modify  critical  habitat  for                                                              
Spectacled  Eiders  include, but  are  not limited  to  commercial                                                              
fishing,  oil  exploration  and   development,  petroleum  product                                                              
transfer."   He explained that what  they are saying is  that some                                                              
of these other activities can affect critical habitat.                                                                          
                                                                                                                                
MR. PETSEL  indicated that  the way  he sees  it is anything  that                                                              
requires  a  permit  will  have  an  additional  layer  of  review                                                              
attached to it.                                                                                                                 
                                                                                                                                
Number 2155                                                                                                                     
                                                                                                                                
TADD  OWENS,  Project Coordinator,  Resource  Development  Counsel                                                              
(RDC), testified via teleconference  from Anchorage.  He explained                                                              
that  the RDC  represents individuals  and companies  from all  of                                                              
Alaska's basic  economic sectors, including mining,  forestry, oil                                                              
and  gas,  tourism  and  fisheries.   Their  mission  is  to  grow                                                              
Alaska's  economy  through  the  responsible  development  of  the                                                              
state's  natural   resources.    The  membership   [RDC]  strongly                                                              
supports HJR 60.   The USFWS concedes that neither  the Spectacled                                                              
Eider  nor  the Steller's  Eider  is  habitat limited  in  Alaska;                                                              
therefore,  these waterfowl  have not  suffered due  to a lack  of                                                              
suitable habitat.   The sheer size of the proposed  designation is                                                              
a serious cause  for concern to RDC's members.  In  fact the USFWS                                                              
stated  reason  for designating  critical  habitat  for these  two                                                              
species  is   in  order   to  respond  to   a  lawsuit   filed  by                                                              
environmental organizations.   RDC believes that  a designation of                                                              
this magnitude  should be based on  sound science and not  a legal                                                              
compromise.   Both the  Spectacled Eider  and the Steller's  Eider                                                              
are  listed  as  threatened  under the  ESA  and  the  protections                                                              
afforded  to  species  listed  as threatened  under  the  ESA  are                                                              
substantial.   He pointed  out that the  Spectacled Eider  and the                                                              
Steller's   Eider  are   not  habitat   limited;  therefore,   the                                                              
designation  of  critical  habitat does  little  to  significantly                                                              
increase their protection.                                                                                                      
                                                                                                                                
MR. OWENS noted  that critical habitat can, however,  be used as a                                                              
tool   to   slow   economic   development   by   individuals   and                                                              
organizations  interested  in  acting  as  obstructionists.    For                                                              
example, last  week Greenpeace, the  American Oceans  Campaign and                                                              
the  Sierra Club  asked  a federal  judge in  Seattle  to ban  the                                                              
harvest of  pollock and other  bottomfish in areas  throughout the                                                              
Bering  Sea and  the Gulf  of Alaska  where  critical habitat  for                                                              
Steller  sea lions  has been  designated.   Mr.  Owens said  RDC's                                                              
members are committed  to the responsible development  of Alaska's                                                              
natural  resources.  They  believe that  the protections  provided                                                              
through a threatened  listing are enough to safeguard  the welfare                                                              
of both  the Spectacled and Steller's  Eider.  The  designation of                                                              
more that  75,000 square miles of  critical habitat, on  the other                                                              
hand, goes entirely too far.                                                                                                    
                                                                                                                                
Number 2311                                                                                                                     
                                                                                                                                
MARILYN CROCKETT, Deputy Director,  Alaska Oil and Gas Association                                                              
(AOGA), testified  via teleconference from Anchorage.   She stated                                                              
that AOGA  is a private  nonprofit trade association  whose member                                                              
companies account  for the majority  of oil and gas  operations in                                                              
Alaska; its  members have  demonstrated a longstanding  commitment                                                              
to   protection  of   wildlife  populations   and  their   habitat                                                              
surrounding  oil and gas  operations.   They have cooperated  with                                                              
the  USFWS  over  many  years in  research,  so  that  they  could                                                              
understand   specific  habitat   preferences.     Extensive   pre-                                                              
development nest  and brood-rearing  surveys are conducted  to map                                                              
those  areas  and avoid  them,  offering  an additional  level  of                                                              
protection  for these  species, and  they plan  to continue  those                                                              
surveys.   The USFWS has proposed  some 74,000 square miles  to be                                                              
designated  as  critical habitat  for  Spectacled  Eider and  some                                                              
25,000 square  miles for  the Steller's  Eider.   As noted  in the                                                              
resolution,  these designations are  proposed as  a result  of the                                                              
settlement agreement  between the  USFWS and environmental  groups                                                              
who  question  the  USFWS's  initial  decision  not  to  designate                                                              
critical habitat.                                                                                                               
                                                                                                                                
MS.  CROCKETT  continued  that  ironically  USFWS  personnel  have                                                              
stated that they  do not believe that the designation  of critical                                                              
habitat provides  significant additional protection  over measures                                                              
implemented  pursuant   to  either  a  threatened   or  endangered                                                              
listing.   They note  that listed species  and their  habitats are                                                              
protected  by  the  ESA  whether  or  not  they  are  in  an  area                                                              
designated  as critical habitat;  they further  note that  in most                                                              
cases,  critical  habitat designation  duplicates  the  protection                                                              
provided by the ESA.  That is why  over the years they have chosen                                                              
to dedicate  their resources  to  investigate the  need to  list a                                                              
species  as threatened  or endangered  rather  than spending  time                                                              
designating critical  habitat.  Furthermore,  the majority  of the                                                              
critical habitat  designations for both  of the eiders are  on the                                                              
northern  portion  of  NPR-A,  where   numerous  eider  protection                                                              
measures are already in place.                                                                                                  
                                                                                                                                
MS. CROCKETT noted  that the Environmental Impact  Statement (EIS)                                                              
for NPR-A  designated over  1 million acres  in the vicinity  as a                                                              
Spectacled  Eider breeding range  "land use  emphasis" area.   The                                                              
EIS  also included  79 stipulations  to  specifically address  and                                                              
minimize  the impacts  of  human activities  upon  birds like  the                                                              
eiders.   The  state's  best  interest  findings for  lease  sales                                                              
conducted by  Alaska contain  similar stipulations and  mitigation                                                              
measures, and these, taken together, offer a whole set of                                                                       
additional eider habitat protection mechanisms.                                                                                 
                                                                                                                                
OLIVER LEAVITT, Vice President, Arctic Slope Regional Corporation                                                               
(ASRC), testified via teleconference from Barrow.  He read his                                                                  
testimony into the record:                                                                                                      
                                                                                                                                
     I am here this afternoon to  urge the State of Alaska to                                                                   
     join with us in opposing the  designation of much of the                                                                   
     North  Slope  as critical  habitat  for  Spectacled  and                                                                   
     Steller's  Eiders.   The  stakes are  high.   Unless  we                                                                   
     respond quickly and with all  the means at our disposal,                                                                   
     the eiders will do for the North  Slope what the spotted                                                                   
     owl did for the economy of the Pacific Northwest.                                                                          
                                                                                                                                
     I believe ASRC  and the state have a common  interest in                                                                   
     opposing    this    latest   example    of    regulatory                                                                   
     overreaching.  ASRC owns 5 million  acres of land on the                                                                   
     North  Slope.   Less than  ten years  ago, ASRC  entered                                                                   
     into an historic  agreement with the state  of Alaska in                                                                   
     which  we merged  our titles  in the  Colville Delta  to                                                                   
     facilitate oil and gas development.                                                                                        
                                                                                                                                
     The  wisdom of  that  policy is  apparent  today.   This                                                                   
     summer, the Alpine field will  go into production.  This                                                                   
     will  be the  first  commercial  development  of oil  on                                                                   
     ASRC's  lands.   The  alpine field  and  other small  to                                                                   
     medium fields  in the process  of development  will help                                                                   
     the state of  Alaska to offset the revenue  decline from                                                                   
     Prudhoe Bay.                                                                                                               
                                                                                                                                
     You are  well aware  that every  attempt to develop  oil                                                                   
     and gas  on the  North Slope is  met with litigation  by                                                                   
     the self-appointed  environmental ombudsmen.   Recently,                                                                   
     for  example, ASRC  joined with  the state  and ARCO  to                                                                   
     defeat  a court challenge  that threatened  to stop  the                                                                   
     Alpine project in its track.                                                                                               
                                                                                                                                
     I  believe that  the designation  of much  of the  North                                                                   
     Slope  as eider critical  habitat will  only spawn  more                                                                   
     such  litigation  and give  enormous  leverage to  those                                                                   
     groups   whose  sole   aim  is  to   stop  all   further                                                                   
     development of oil and gas in the Arctic.                                                                                  
                                                                                                                                
     Let  me say  at  this point  that I  am  not opposed  in                                                                   
     principle  to designating critical  habitat where  there                                                                   
     is  a demonstrated  need  to insure  the  survival of  a                                                                   
     species.  The lives of the Inupiat  are too dependant on                                                                   
     the health of our environment  and the animals that have                                                                   
     always  sustained us  to ignore  such  threats.   Having                                                                   
     said  this,  we  have  seen   more  than  our  share  of                                                                   
     politically motivated  science.  In my lifetime,  I have                                                                   
     witnessed an attempt to end  the whale hunt because some                                                                   
     scientists  predicted  that  the  bowhead  were  nearing                                                                   
     extinction.   It  turned out  that  the Inupiat  hunters                                                                   
     knew a  good deal more about  the status of  the bowhead                                                                   
     stocks  than  biologist  who  have never  lived  in  the                                                                   
     Arctic.                                                                                                                    
                                                                                                                                
     I believe  that the  proposal to  designate most of  the                                                                   
     coastal  plain of  the North Slope  as critical  habitat                                                                   
     for  two  species  of  eiders   is  another  example  of                                                                   
     politically  motivated science.   The Fish and  Wildlife                                                                   
     Service  admits that designating  critical habitat  will                                                                   
     do nothing  to hasten  the recovery of  the eiders.   It                                                                   
     will, however,  provide a  powerful new litigation  tool                                                                   
     for those who want to stop development in the Arctic.                                                                      
                                                                                                                                
     The Spectacled Eider was listed  as endangered less than                                                                   
     ten years  ago.   The Steller's Eider  was added  to the                                                                   
     threatened list  only three years  ago.  In  both cases,                                                                   
     the Fish  and Wildlife Service  concluded that  it would                                                                   
     not be prudent to designate  critical habitat for a very                                                                   
     simple  reason:  There  is no  evidence whatsoever  that                                                                   
     habitat  destruction  or  scarcity  has  contributed  to                                                                   
     decline of the species.                                                                                                    
                                                                                                                                
     Since that time, the Fish and  Wildlife Service has been                                                                   
     working  on   a  recovery  plan  for  both   species  in                                                                   
     cooperation with  the state in the North  Slope Borough.                                                                   
     To  my   knowledge  neither   has  suggested  that   the                                                                   
     designation  of critical  habitat is  necessary for  the                                                                   
     species  to recovery.    Studies done  in  the past  few                                                                   
     years  show  that the  North  Slope population  of  both                                                                   
     species  has not declined  and may  even be  increasing.                                                                   
     The Fish  and Wildlife Service  said that it  was forced                                                                   
     to take this  action by adverse court decisions.   It is                                                                   
     true  that the  Fish and  Wildlife Service  was sued  in                                                                   
     California.   Instead of  defending that suit,  however,                                                                   
     the Fish  and Wildlife Service  quickly caved in  to the                                                                   
     environmental plaintiffs without  even filing an answer.                                                                   
     The haste with which the case  was settled suggests that                                                                   
     neither  the   Fish  and  Wildlife  Service   nor  their                                                                   
     adversaries  wanted to provide  a forum for  an affected                                                                   
     land owner,  including ASRC  in the  State of Alaska  to                                                                   
     intervene and state their views.   Our attorneys tell us                                                                   
     that  the only  case  that the  fish  and wildlife  lost                                                                   
     involved  failure  to designate  critical  habitat  when                                                                   
     loss  of critical  habitat was a  significant factor  in                                                                   
     the decline of the species.   None has suggested that is                                                                   
     the case with eiders on the North Slope.                                                                                   
                                                                                                                                
     Attached to my  testimony is an opinion letter  from the                                                                   
     Fish and  Wildlife Service's  own attorneys  questioning                                                                   
     the legality  of designating critical habitat  when loss                                                                   
     of habitat  has not been identified  as a factor  in the                                                                   
     decline of  the species.   (This letter was  produced to                                                                   
     ASRC  by the  Fish and  Wildlife Service  pursuant to  a                                                                   
     Freedom of Information Act request.)                                                                                       
                                                                                                                                
     The Fish  and Wildlife Service  is telling everyone  not                                                                   
     to  worry, that  designating critical  habitat will  not                                                                   
     change   the   Endangered   Species   Act   consultation                                                                   
     requirements  that  are already  in  effect.   Why  else                                                                   
     would they  go to the trouble  and expense of  suing the                                                                   
     service?  Settling the litigation  was just a convenient                                                                   
     excuse for  furthering a common  agenda and  giving both                                                                   
     the  Fish and  Wildlife  Service and  the  environmental                                                                   
     organizations more control over  oil and gas development                                                                   
     on the North Slope.                                                                                                        
                                                                                                                                
     Since most active development  in the Arctic takes place                                                                   
     in  the winter  when eiders  are not  present, the  non-                                                                   
     jeopardy requirement  of the Endangered Species  Act can                                                                   
     usually be satisfied with a  simple exchange of letters.                                                                   
     That  is how  it  was done  at  Alpine.   Once  critical                                                                   
     habitat   is  designated,  however,   any  permit   that                                                                   
     disturbs  that habitat -  even if  there is no  evidence                                                                   
     that the  habitat has  ever been used  by the species  -                                                                   
     will  probably  require  formal  consultation  with  the                                                                   
     service.     Formal  consultations  require   biological                                                                   
     assessments and biological options.   The can add a year                                                                   
     or more to permitting time limits.   The study costs are                                                                   
     charged  to the developer.   The slightest  imperfection                                                                   
     in  the process  or the result  provides  a host of  new                                                                   
     procedural and  substantive arguments in  the inevitable                                                                   
     litigation to follow.                                                                                                      
                                                                                                                                
     Perhaps  more   importantly,  designation   of  critical                                                                   
     habitat on ASRC's lands opens  absolutely every land use                                                                   
     decision on those  lands - even if no federal  permit is                                                                   
     required  to citizen suits  by the environmental  lobby.                                                                   
     The  same  will be  true,  of  course, for  state  owned                                                                   
     lands.   Anyone who  thinks that  this tremendous  power                                                                   
     will  be exercised  in  moderation  by groups  like  the                                                                   
     trustees for  Alaska has never tried to develop  land in                                                                   
     the Arctic.                                                                                                                
                                                                                                                                
     Recently the [U.S.] Department  of the Interior declared                                                                   
     approximately 700,000  acres of prospective oil  and gas                                                                   
     lands in  NPR-A off-limits to development  as Spectacled                                                                   
     Eider   breeding   range.     If  a   critical   habitat                                                                   
     designation is  to be made, it should be  limited to the                                                                   
     area already identified and  set aside by the Department                                                                   
     of the Interior.                                                                                                           
                                                                                                                                
     Thank you  for providing the  opportunity to  present my                                                                   
     views on  an issue of  critical importance to  both ASRC                                                                   
     and the State of Alaska.                                                                                                   
                                                                                                                                
Number 2908                                                                                                                     
                                                                                                                                
CHARLES  BROWER,  Director,  Department  of  Wildlife  Management,                                                              
North  Slope Borough,  testified via  teleconference from  Barrow.                                                              
He stated that   he is in support of HJR 60 and  indicated that he                                                              
supports Mr. Leavitt's statement as well.                                                                                       
                                                                                                                                
ROBERT  SUDYAM,   Wildlife  Biologist,   Department  of   Wildlife                                                              
Management,  North  Slope Borough,  testified  via  teleconference                                                              
from Barrow.   He stated that he  has been studying eiders  on the                                                              
North Slope  for approximately 10 years.   He noted that  when the                                                              
USFWS listed Spectacled  and Steller's Eiders as  threatened, they                                                              
did not  designate critical  habitat.   Mr. Sudyam  said they  did                                                              
that for two reasons.  First, they  lacked the information to know                                                              
where  these eiders  spent  their  time.   Second,  when they  had                                                              
information available on the distribution  or the habitat that was                                                              
occupied by  these species, they  determined that the  habitat was                                                              
in a more or less pristine condition  - and most of it was and did                                                              
not  need  special  management.     Since  that  time,  additional                                                              
information  has been  gathered, but  that additional  information                                                              
does not  change the earlier evaluation  of the need  for critical                                                              
habitat.  The  proposed designation by USFWS for  critical habitat                                                              
is  essentially a  distribution [ends  midspeech  because of  tape                                                              
change].                                                                                                                        
                                                                                                                                
TAPE 00-31, SIDE B                                                                                                              
Number 2959                                                                                                                     
                                                                                                                                
HARRY  BROWER,   JR.,   a  hunter  from   Barrow,  testified   via                                                              
teleconference from  Barrow.  He  stated that he supports  HJR 60,                                                              
and   he  supports   the  comments   made  by   Mr.  Leavitt   and                                                              
Representative Phillips.                                                                                                        
                                                                                                                                
Number 2925                                                                                                                     
                                                                                                                                
WAYNE  REGELIN,  Director,  Division   of  Wildlife  Conservation,                                                              
Alaska  Department of  Fish  & Game  (ADF&G),  indicated that  the                                                              
department supports HJR 60 and strongly  disagrees with the action                                                              
that the USFWS  is proposing.  Once  the huge area is  declared as                                                              
critical habitat  and it goes to  court, the court will  give it a                                                              
whole lot more emphasis.  There are  a few small areas that recent                                                              
research has shown for the Spectacled  Eider that might qualify as                                                              
critical habitat.   For the Steller's Eider there  are no critical                                                              
habitat areas.   The department views the designation  as a rather                                                              
foolish action that could be extremely detrimental to the state.                                                                
                                                                                                                                
CO-CHAIR HUDSON indicated that concluded the public testimony.                                                                  
                                                                                                                                
Number 2814                                                                                                                     
                                                                                                                                
REPRESENTATIVE JOULE  made a motion to move HJR  60 from committee                                                              
with individual  recommendations and the accompanying  zero fiscal                                                              
note.   There  being no  objection, HJR  60 moved  from the  House                                                              
Resources Standing Committee.                                                                                                   
                                                                                                                                
CO-CHAIR HUDSON  turned the gavel  over to Co-Chair Masek.   There                                                              
was an at-ease from 2:02 p.m. to 2:10 p.m.                                                                                      
                                                                                                                                
[CO-CHAIR MASEK  announced that the  committee would hear  HJR 44,                                                              
then indicated  she did  not intend  to move  it out of  committee                                                              
that day.  Subsequently,  at the sponsor's suggestion,  HJR 44 was                                                              
not heard.]                                                                                                                     
                                                                                                                                
ADJOURNMENT                                                                                                                     
                                                                                                                                
CO-CHAIR MASEK  adjourned the  House Resources Standing  Committee                                                              
meeting at 2:12 p.m.                                                                                                            
                                                                                                                                

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