Legislature(2001 - 2002)

04/27/2001 01:12 PM House RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE RESOURCES STANDING COMMITTEE                                                                             
                         April 27, 2001                                                                                         
                           1:12 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Drew Scalzi, Co-Chair                                                                                            
Representative Hugh Fate, Vice Chair                                                                                            
Representative Joe Green                                                                                                        
Representative Mike Chenault                                                                                                    
Representative Lesil McGuire                                                                                                    
Representative Gary Stevens                                                                                                     
Representative Mary Kapsner                                                                                                     
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Beverly Masek, Co-Chair                                                                                          
Representative Beth Kerttula                                                                                                    
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CONFIRMATION HEARINGS                                                                                                           
                                                                                                                                
Board of Game (Continued)                                                                                                     
                                                                                                                                
     Julie Maier - Fairbanks                                                                                                    
     Ben Grussendorf - Sitka                                                                                                    
     William H. "Chip" Dennerlein - Anchorage                                                                                   
                                                                                                                                
     - CONFIRMATIONS ADVANCED                                                                                                   
                                                                                                                                
Oil & Gas Conservation Commission                                                                                             
                                                                                                                                
     Julie Huesser - Anchorage                                                                                                  
                                                                                                                                
     - CONFIRMATION ADVANCED                                                                                                    
                                                                                                                                
Dept of Natural Resources Commissioner                                                                                        
                                                                                                                                
     Pat Pourchot - Juneau                                                                                                      
                                                                                                                                
     - CONFIRMATION ADVANCED                                                                                                    
                                                                                                                                
HOUSE BILL NO. 241                                                                                                              
"An Act relating to a railroad utility corridor for extension of                                                                
the Alaska Railroad to Canada and to extension of the Alaska                                                                    
Railroad to Whitehorse, Yukon Territory, Canada."                                                                               
                                                                                                                                
     - MOVED CSHB 241(RES) OUT OF COMMITTEE                                                                                     
                                                                                                                                
PREVIOUS ACTION                                                                                                               
                                                                                                                                
BILL: HB 241                                                                                                                  
SHORT TITLE:RAIL AND UTILITY CORRIDOR TO CANADA                                                                                 
SPONSOR(S): REPRESENTATIVE(S)JAMES                                                                                              
                                                                                                                                
Jrn-Date   Jrn-Page                     Action                                                                                  
04/10/01     0929       (H)        READ THE FIRST TIME -                                                                        
                                   REFERRALS                                                                                    
04/10/01     0929       (H)        TRA, RES                                                                                     
04/24/01     1181       (H)        COSPONSOR(S): MCGUIRE,                                                                       
                                   KOHRING, SCALZI,                                                                             
04/24/01     1181       (H)        WILSON                                                                                       
04/24/01                (H)        TRA AT 1:00 PM CAPITOL 17                                                                    
04/24/01                (H)        Moved Out of Committee                                                                       
04/24/01                (H)        MINUTE(TRA)                                                                                  
04/25/01     1197       (H)        TRA RPT 3DP 1NR                                                                              
04/25/01     1198       (H)        DP: WILSON, SCALZI, KOHRING;                                                                 
                                   NR: MASEK                                                                                    
04/25/01     1198       (H)        FN1: ZERO(CED)                                                                               
04/25/01                (H)        RES AT 1:00 PM CAPITOL 124                                                                   
04/25/01                (H)        <Bill Postponed to Friday                                                                    
                                   4/27>                                                                                        
04/26/01     1257       (H)        COSPONSOR(S): FOSTER,                                                                        
                                   WHITAKER                                                                                     
04/27/01                (H)        RES AT 1:00 PM CAPITOL 124                                                                   
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
NOEL WOODS                                                                                                                      
Matanuska Valley Sportsman                                                                                                      
(No address provided)                                                                                                           
POSITION STATEMENT:  Testified in opposition to the confirmation                                                                
of Dr. Maier, Mr. Grussendorf, and Mr. Dennerlein to the Board                                                                  
of Game.                                                                                                                        
                                                                                                                                
JEAN WOODS                                                                                                                      
(No address provided)                                                                                                           
POSITION STATEMENT:  Testified in opposition to the confirmation                                                                
of Dr. Maier, Mr. Grussendorf, and Mr. Dennerlein to the Board                                                                  
of Game.                                                                                                                        
                                                                                                                                
PATTI BARBER                                                                                                                    
(No address provided)                                                                                                           
POSITION STATEMENT:  Testified in  opposition to the confirmation                                                               
of Dr.  Maier, Mr. Grussendorf,  and Mr. Dennerlein to  the Board                                                               
of Game.                                                                                                                        
                                                                                                                                
DICK BISHOP                                                                                                                     
Alaska Outdoor Council                                                                                                          
1555 Gus's Grind                                                                                                                
Fairbanks, Alaska 99709                                                                                                         
POSITION STATEMENT:  Testified in  opposition to the confirmation                                                               
of Dr.  Maier, Mr. Grussendorf,  and Mr. Dennerlein to  the Board                                                               
of Game.                                                                                                                        
                                                                                                                                
KENNY BARBER                                                                                                                    
(No address provided)                                                                                                           
POSITION STATEMENT:  Testified in  opposition to the confirmation                                                               
of Dr. Maier, Mr. Grussendorf, and Mr. Dennerlein.                                                                              
                                                                                                                                
JULIE HEUSSER, Appointee                                                                                                        
to the Oil & Gas Conservation Commission                                                                                        
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:   Testified as an appointee to the  Oil & Gas                                                               
Conservation Commission.                                                                                                        
                                                                                                                                
PAT POURCHOT, Commissioner                                                                                                      
Department of Natural Resources                                                                                                 
400 Willoughby Avenue, 5th floor                                                                                                
Juneau, Alaska 99801-1724                                                                                                       
POSITION   STATEMENT:     Testified  as   an  appointee   as  the                                                               
Commissioner of the Department of Natural Resources.                                                                            
                                                                                                                                
REPRESENTATIVE JEANETTE JAMES                                                                                                   
Alaska State Legislature                                                                                                        
Capitol Building, Room 214                                                                                                      
Juneau, Alaska 99801                                                                                                            
POSITION STATEMENT:  Testified as sponsor of HB 241.                                                                            
                                                                                                                                
HAL COOPER                                                                                                                      
(No address provided)                                                                                                           
POSITION STATEMENT:  Testified in support of HB 241.                                                                            
                                                                                                                                
PAUL TAYLOR, Professional Engineer                                                                                              
(No address provided)                                                                                                           
POSITION STATEMENT:  Testified on HB 241.                                                                                       
                                                                                                                                
DAVE BROADBENT (PH)                                                                                                             
Canadian Arctic Railway                                                                                                         
(No address provided)                                                                                                           
POSITION STATEMENT:  Testified on HB 241.                                                                                       
                                                                                                                                
BILL BRITT, State Gas Pipeline Coordinator                                                                                      
Office of the Commissioner                                                                                                      
Department of Natural Resources                                                                                                 
411 W 4th Avenue, 2nd floor                                                                                                     
Anchorage, Alaska  99501-2343                                                                                                   
POSITION STATEMENT:  Expressed concerns with HB 241.                                                                            
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
TAPE 01-44, SIDE A                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
CO-CHAIR  DREW   SCALZI  called  the  House   Resources  Standing                                                               
Committee meeting to order at  1:12 p.m.  Representatives Scalzi,                                                               
Fate, McGuire, Stevens,  and Kapsner were present at  the call to                                                               
order.    Representatives  Green  and  Chenault  arrived  as  the                                                               
meeting was  in progress.   Co-Chair Scalzi  passed the  gavel to                                                               
Representative Fate, Vice Chair.                                                                                                
                                                                                                                                
CONFIRMATION HEARINGS                                                                                                         
                                                                                                                                
Board of Fisheries                                                                                                            
                                                                                                                                
VICE CHAIR FATE  announced that the committee  would continue the                                                               
confirmation  hearings  on  the  Board of  Game  [that  began  on                                                               
4/25/01].   He  noted that  [at  a prior  hearing] the  committee                                                               
heard   from  Dr.   Julie   Maier,   former  Representative   Ben                                                               
Grussendorf, and  Mr. "Chip" Dennerlein, appointees  to the Board                                                               
of Game.  He then turned to [public] testimony.                                                                                 
                                                                                                                                
Number 0205                                                                                                                     
                                                                                                                                
NOEL   WOODS,   Matanuska   Valley   Sportsman,   testified   via                                                               
teleconference  in  opposition to  all  three  appointees to  the                                                               
Board  of  Game.    After  a  survey  of  the  actions  of  these                                                               
appointees during the past Board  of Game meeting, [the Matanuska                                                               
Valley Sportsman]  feels that  they failed  to recognize  what is                                                               
considered to be  a severe game-predator problem.   Their actions                                                               
do provide [assurance that the  Matanuska Valley Sportsman] would                                                               
have confidence  in these appointees  as members of the  Board of                                                               
Game.   [The  Matanuska  Valley Sportsman]  feels quite  strongly                                                               
that a sustained  yield is more important  than the predator-prey                                                               
relationship for which they seem to have concern.                                                                               
                                                                                                                                
JEAN WOODS  testified via teleconference  and said she  wanted to                                                               
echo  Mr.  Woods'  comments.   Ms.  Woods  noted  her  particular                                                               
opposition to  the confirmation  of Mr.  Dennerlein based  on his                                                               
behavior at  the last Board of  Game meeting.  Ms.  Woods related                                                               
her understanding  that at  the last Board  of Game  meeting, Mr.                                                               
Dennerlein   carried  on   phone  conversations,   was  rude   to                                                               
testifiers, was  inattentive during presentations, and  was doing                                                               
personal  business on  his  laptop.   Ms.  Woods interpreted  Mr.                                                               
Dennerlein's  actions  to  mean  that  he is  too  busy  and  too                                                               
important to give the Board of Game the time it deserves.                                                                       
                                                                                                                                
Number 0485                                                                                                                     
                                                                                                                                
PATTI BARBER testified  via teleconference and noted  that she is                                                               
speaking  on behalf  of her  husband,  Kenny Barber,  as well  as                                                               
herself.   She informed  the committee that  she and  her husband                                                               
are opposed  to the  [confirmations] of  all three  appointees to                                                               
the  Board of  Game.   "After  sitting in  on the  Board of  Game                                                               
meetings for eight  days, we felt that these  members were unable                                                               
to  use  sound judgment  concerning  game  issues," she  charged.                                                               
Furthermore, she  didn't feel that  the [appointees]  listened to                                                               
the  concerns  of the  area  biologist.    Also, the  board  gave                                                               
nonresidents a  longer hunting season  over residents  of Alaska,                                                               
which  she and  her  husband  felt was  unfair.   Therefore,  Ms.                                                               
Barber urged the committee not to confirm these appointees.                                                                     
                                                                                                                                
VICE  CHAIR FATE  asked if  there were  any further  questions or                                                               
comments regarding the three Board of Game appointees.                                                                          
                                                                                                                                
Number 0633                                                                                                                     
                                                                                                                                
DICK  BISHOP,   Alaska  Outdoor   Council  (AOC),   informed  the                                                               
committee that  during the council's statewide  delegates meeting                                                               
in March, it unanimously voted  in opposition to the confirmation                                                               
of Mr.  Dennerlein, Mr. Grussendorf,  and Dr. Maier to  the Board                                                               
of Game.   Although it's the board's  responsibility to establish                                                               
management  policy and  approve management  plans, last  year the                                                               
governor told  the board that  he wanted  a "new era  of wildlife                                                               
management"  with more  protection  for wolves,  and more  closed                                                               
areas [designated by the governor]  for viewing wolves and bears.                                                               
Only after  such would the  governor consider  management actions                                                               
to  increase big  game numbers  in important  hunting areas.   At                                                               
that  time the  board  had accomplished  an  intensive review  of                                                               
predator-prey situations and had  developed an outstanding policy                                                               
on predator-prey  scenarios.   [The Board  of Game]  couldn't, in                                                               
good  conscious,  accept  this   intrusion  into  their  area  of                                                               
responsibility.   [Therefore,]  those board  members whose  terms                                                               
expired weren't reappointed.                                                                                                    
                                                                                                                                
MR. BISHOP pointed out that  the "new era of wildlife management"                                                               
requested by  the governor  "boils down  to" no  management, less                                                               
hunting, and more viewing.   Such a situation undermines Alaska's                                                               
traditional  pursuits and  lifestyles.    "For justification,  it                                                               
relies  on  the  popular  myth   that  hunting  and  viewing  are                                                               
incompatible.  This  year the governor reappointed  Board of Fish                                                               
members  based   on  the  premise   of  seeking   experience  and                                                               
continuity on the  Board of Fisheries.  However,  that wasn't the                                                               
policy  with the  Board  of Game  appointments  where the  policy                                                               
seemed  to   systematically  purge  experience   and  continuity.                                                               
Therefore, the committee  is faced with the request  to confirm a                                                               
Board  of  Game  that  the  governor  hopes  will  implement  his                                                               
demands.   Mr. Bishop said, "The  governor has chosen well."   He                                                               
informed  the   committee  that  Mr.  Dennerlein   represents  an                                                               
environmental  organization  that  has anti-hunting  roots  going                                                               
back decades and  continues to mislead the  public about wildlife                                                               
issues in Alaska.  Although  former Representative Grussendorf is                                                               
a   respected  legislator,   his  record   includes  a   bill  to                                                               
unnecessarily  shut down  an important  brown bear  hunting area,                                                               
opposition  to legislation  that  addresses the  shortage of  big                                                               
game,  as   well  as   opposition  to   earlier  Board   of  Game                                                               
appointments.   Furthermore, Dr. Maier, a  well-educated wildlife                                                               
biologist, lacks  management experience  as a framework  in which                                                               
to  effectively  apply  her  training   to  address  the  board's                                                               
challenges.                                                                                                                     
                                                                                                                                
MR. BISHOP concluded  by urging the committee to  not approve the                                                               
governor's agenda.   However, he suggested that  if the committee                                                               
approves  of  the  governor's  agenda,   it  should  confirm  the                                                               
governor as a member of the Board of Game.                                                                                      
                                                                                                                                
Number 0633                                                                                                                     
                                                                                                                                
CO-CHAIR  SCALZI  agreed  with  Mr. Bishop's  assessment  of  the                                                               
governor's  stance.    He  understood Mr.  Bishop  to  merely  be                                                               
pointing out [the governor's stance  rather than only arguing for                                                               
continuity].                                                                                                                    
                                                                                                                                
MR. BISHOP  answered that  [reappointment of  a board  member] is                                                               
really dependent  upon good  judgment in regard  to how  well the                                                               
board is performing its responsibilities  in its arena.  In AOC's                                                               
opinion, the  previous board was performing  its responsibilities                                                               
in an outstanding  manner.  That board did an  outstanding job in                                                               
dealing with  the difficult issue of  predator-prey management as                                                               
well as  presenting the best  written policy Mr. Bishop  had ever                                                               
seen.  Mr. Bishop remarked  that those board members who exercise                                                               
fair-mindedness and  good judgment illustrate that  longevity and                                                               
experience are extremely valuable.  In  the past some of the best                                                               
boards were  comprised of people  who had  been on the  board for                                                               
quite some time.  For  example, Sydney Huntington, an outstanding                                                               
board member, served on the Board of Game for 20 years.                                                                         
                                                                                                                                
CO-CHAIR  SCALZI  related  his   understanding  that  the  Alaska                                                               
Department of Fish  & Game (ADF&G) is very  supportive of [AOC's]                                                               
ideology for game management.                                                                                                   
                                                                                                                                
MR. BISHOP  remarked that most  departmental biologists  who have                                                               
worked on  predator-prey management studies or  are familiar with                                                               
such  would agree  that predation  on big  game is  the principal                                                               
limiting factor on  big game numbers in the state.   Predation on                                                               
big game  accounts for about  85 percent of the  annual mortality                                                               
to most big game animals  while hunter harvest accounts for about                                                               
2-7 percent,  depending on the  particular circumstances.   There                                                               
is also  the small factor  of accidents  and diseases.   He noted                                                               
that  [predation] doesn't  apply  with animals  such  as deer  in                                                               
Southeast Alaska.                                                                                                               
                                                                                                                                
CO-CHAIR  SCALZI surmised  then that  in most  cases, Mr.  Bishop                                                               
felt that  the biologists are  good stewards of  information that                                                               
depict  how  management regimes  should  proceed  with regard  to                                                               
predation.                                                                                                                      
                                                                                                                                
MR. BISHOP replied  yes.  In regard to whether  ADF&G would be in                                                               
agreement with AOC's  views on predator management,  he felt that                                                               
while most of the biologist are  in agreement with AOC's views on                                                               
predator  management,  the   department  and  the  administration                                                               
generally is not.                                                                                                               
                                                                                                                                
Number 1350                                                                                                                     
                                                                                                                                
KENNY BARBER  testified via teleconference  and noted that  he is                                                               
an advisory  board committee member,  although he is  speaking on                                                               
his  own behalf.   Mr.  Barber explained  that he  would ask  the                                                               
committee  not  to  [confirm]  the   appointees  because  of  his                                                               
experience with  these people involving trapping  issues on trail                                                               
systems.                                                                                                                        
                                                                                                                                
Number 1483                                                                                                                     
                                                                                                                                
GAIL BLUNDELL testified  via teleconference.  She  noted that she                                                               
holds  a  PhD in  Wildlife  Biology.   Ms.  Blundell  recommended                                                               
confirmation  of Dr.  Maier.   She  related her  belief that  the                                                               
Board  of   Game  should  represent  all   factions  of  Alaska's                                                               
citizenry  in proportion  to their  currents  in the  population.                                                               
Ms. Blundell remarked that although  most board members represent                                                               
only  one  viewpoint,  Dr. Maier  represents  a  balance  between                                                               
consumptive  use  - her  family  relies  on  wild  game -  and  a                                                               
scientific education.   Dr. Maier was educated in  Alaska and has                                                               
conducted research in  various ecosystems in Alaska  and thus she                                                               
has the ability to understand  how various proposals may fit into                                                               
the  ecosystem  as  a  short-term  solution  with  its  long-term                                                               
implications.                                                                                                                   
                                                                                                                                
VICE CHAIR  FATE noted  that there  is a  quorum present  and the                                                               
explained  that the  committee would  need  to have  a motion  to                                                               
forward the names of the appointees  to the joint session of both                                                               
bodies for consideration of appointment to the Board of Game.                                                                   
                                                                                                                                
Number 1565                                                                                                                     
                                                                                                                                
REPRESENTATIVE  STEVENS  moved  that the  committee  forward  Dr.                                                               
Julie Maier's name  to the joint session of the  House and Senate                                                               
for consideration  of appointment  to the Board  of Game.   There                                                               
being no objection, it was so ordered.                                                                                          
                                                                                                                                
CO-CHAIR  SCALZI  moved  that  the   committee  forward  Mr.  Ben                                                               
Grussendorf's name to  the joint session of the  House and Senate                                                               
for consideration of appointment to the Board of Game.                                                                          
                                                                                                                                
VICE CHAIR FATE objected.                                                                                                       
                                                                                                                                
A roll  call vote  was taken.   Representatives  Kapsner, Scalzi,                                                               
McGuire, Chenault, and  Stevens voted in favor  of forwarding Mr.                                                               
Ben  Grussendorf's name  to the  joint session  of the  House and                                                               
Senate for  consideration of  appointment to  the Board  of Game.                                                               
Representative  Fate  voted  against  it.    Therefore,  Mr.  Ben                                                               
Grussendorf's name was forwarded by a vote of 5-1.                                                                              
                                                                                                                                
Number 1685                                                                                                                     
                                                                                                                                
REPRESENTATIVE  CHENAULT moved  that  the  committee forward  Mr.                                                               
Chip  Dennerlein's name  to the  joint session  of the  House and                                                               
Senate for consideration of appointment to the Board of Game.                                                                   
                                                                                                                                
CO-CHAIR SCALZI objected.                                                                                                       
                                                                                                                                
A roll  call vote was  taken.  Representatives  Kapsner, McGuire,                                                               
Chenault,  and Stevens  voted  in favor  of  forwarding Mr.  Chip                                                               
Dennerlein's name  to the joint  session of the House  and Senate                                                               
for  consideration   of  appointment   to  the  Board   of  Game.                                                               
Representatives  Scalzi and  Fate voted  against it.   Therefore,                                                               
Mr. Ben Grussendorf's name was forwarded by a vote of 4-2.                                                                      
                                                                                                                                
Oil & Gas Conservation Commission                                                                                             
                                                                                                                                
VICE CHAIR  FATE turned to  the confirmations  for the Oil  & Gas                                                               
Conservation   Commission   [Alaska   Oil  &   Gas   Conservation                                                               
Commission (AOGCC)].                                                                                                            
                                                                                                                                
Number 1785                                                                                                                     
                                                                                                                                
JULIE  HEUSSER,   Appointee  to   the  Oil  &   Gas  Conservation                                                               
Commission, testified  via teleconference.  Ms.  Heusser, a life-                                                               
long  Alaskan,  informed the  committee  that  she is  a  degreed                                                               
petroleum  engineer.     Ms.  Heusser  stated,   "I'm  very  much                                                               
committed to working at the  AOGCC to carry out the legislatively                                                               
mandated intent  of Title 31,  the Oil and Gas  Conservation Act,                                                               
as well  as our regulations."   She noted that she  has been with                                                               
the commission for more than five  months and brings more than 20                                                               
years of practical  "down-hole" experience in a  variety of areas                                                               
that seem applicable to the commission's work.                                                                                  
                                                                                                                                
VICE CHAIR FATE  inquired as to whether anyone  wished to testify                                                               
on this proposed  appointment.  There being no  one, he indicated                                                               
that he would entertain a motion.                                                                                               
                                                                                                                                
Number 1874                                                                                                                     
                                                                                                                                
REPRESENTATIVE  McGUIRE  moved  that the  committee  forward  Ms.                                                               
Julie  Heusser's name  to  the  joint session  of  the House  and                                                               
Senate  for  consideration  of  appointment  to  the  Oil  &  Gas                                                               
Conservation Commission.   There  being no  objection, it  was so                                                               
ordered.                                                                                                                        
                                                                                                                                
Dept of Natural Resources Commissioner                                                                                        
                                                                                                                                
VICE CHAIR FATE  moved on to the reappointment  of the Department                                                               
of Natural Resources Commissioner, Pat Pourchot.                                                                                
                                                                                                                                
Number 1921                                                                                                                     
                                                                                                                                
PAT  POURCHOT,  Commissioner,  Department  of  Natural  Resources                                                               
(DNR),  noted  that  the  committee  packet  should  contain  his                                                               
resume.   Commissioner  Pourchot informed  the committee  that he                                                               
served four years in the State  House and four years in the State                                                               
Senate.   For  the past  six years  he has  been the  legislative                                                               
director  for   Governor  Knowles  until  his   appointment  last                                                               
September  as the  Commissioner  of DNR.   Commissioner  Pourchot                                                               
said  that  he  viewed  his  appointment as  a  great  honor  and                                                               
privilege.    He  pointed  out  that DNR  is  charged  with  both                                                               
developing and  conserving the  state's resources,  and therefore                                                               
is involved  in a variety of  functions that can collide.   There                                                               
is emphasis  in obtaining the  facts and hearing from  the public                                                               
as the department  tries to make informed,  intelligent, and fair                                                               
decisions,   which  former   Commissioner  Shively   started  and                                                               
Commissioner Pourchot hoped to follow.                                                                                          
                                                                                                                                
REPRESENTATIVE  McGUIRE noted  that  she  has known  Commissioner                                                               
Pourchot for many  years and she thought he would  do a great job                                                               
in this  position.  Representative  McGuire referred to  an email                                                               
that  she found  disturbing.   She explained  that the  email was                                                               
forwarded to  the Juneau Assembly  by the  mayor.  The  email was                                                               
then   brought   to   the    attention   of   some   legislators.                                                               
Representative McGuire said  that from the email  it appears that                                                               
Jim Stratton  is confused  whether he would  have the  ability to                                                               
administratively withdraw land for creation  of the Channel Park.                                                               
She  inquired  as  to Commissioner  Pourchot's  position  on  the                                                               
Channel Park and the aforementioned administrative power.                                                                       
                                                                                                                                
Number 2145                                                                                                                     
                                                                                                                                
COMMISSIONER POURCHOT  remarked that  this is  the type  of email                                                               
from department  staff that is  not a good form  of communication                                                               
in which  to engage.  He  noted that he wasn't  familiar with the                                                               
local political situation  relating to this [park].   However, he                                                               
turned  to  the  Interagency  Land  Management  Agreement  (ILMA)                                                               
issue.    Commissioner  Pourchot  stated  that  [DNR]  does  have                                                               
authority   -   under   a   recently   revised   statute   -   to                                                               
administratively  transfer  management  for  park  or  recreation                                                               
purposes.   The area  is limited  in size to  640 acres  a square                                                               
mile and  the department  must report  on any  uses of  that land                                                               
annually to the  legislature.  Over the past  several years, this                                                               
has been  used sparingly.   The areas in  which it has  been used                                                               
average 170-180  acres in size  and most often stem  from another                                                               
locality or  agency that requests  DNR to set up  this management                                                               
system to  be established  for some special  purpose.   These are                                                               
typically picnic sites  or campground areas.   However, this [can                                                               
be  sought] for  other agencies.   Commissioner  Pourchot related                                                               
his  belief that  [ILMAs] are  good management  tools.   He noted                                                               
that [DNR]  would not unilaterally  designate a small  park area,                                                               
but  would, in  this case,  result  from borough  action or  city                                                               
action and  would need to proceed  through a public process.   He                                                               
reiterated that  he wasn't  sure of the  local feelings  on this;                                                               
however, this  [email] seems  to indicate that  there has  been a                                                               
change in  [city and borough]  administration and perhaps  now is                                                               
the  time to  determine  whether the  local  community wants  the                                                               
department to do something in regard to the Channel Islands.                                                                    
                                                                                                                                
REPRESENTATIVE McGUIRE  specified that  she wasn't  implying that                                                               
the  ILMA   process  isn't  useful  or   appropriate  in  certain                                                               
situations.   However,  she was  disturbed by  the commissioner's                                                               
answer because  it seemed  to suggest that  a land  withdrawal of                                                               
the  size  in  the  Channel  Park  area  could  simply  occur  by                                                               
resolution of  the borough stating  that there is  support within                                                               
the borough.  She pointed out  that such action did occur in 1995                                                               
and  thus she  didn't have  any  misgivings that  it could  occur                                                               
again.    Therefore,  she  expressed  concern  as  to  where  the                                                               
legislature  fits into  this.    In fact,  one  of the  "Whereas"                                                               
clauses  in the  1995  borough resolution  says,  "Action by  the                                                               
Alaska   Legislature  is   necessary  to   accomplish  the   land                                                               
withdrawal and there is currently  legislation pending, HB 91 and                                                               
34,  that would  accomplish the  creation of  the Juneau  Channel                                                               
Islands Marine Park."   Representative McGuire said,  "I would be                                                               
troubled to  see any one of  us or, in this  case, the department                                                               
simply  subverting the  legislative  process and  using the  ILMA                                                               
process and  simply a resolution  by the borough to  do something                                                               
that  is  as  controversial  and  as  drastic,  in  my  opinion."                                                               
Therefore, she inquired as to  the sideboards because there don't                                                               
seem to be any in regard to the Channel Islands Park.                                                                           
                                                                                                                                
COMMISSIONER  POURCHOT pointed  out  that the  sideboards are  in                                                               
statute for the  circumstances under which the  department can do                                                               
an administrative ILMA.   Again, he noted  his unfamiliarity with                                                               
the specifics of  the bill.  However, he guessed  that the reason                                                               
for the  statute was that  it exceeded  the acreage amount.   The                                                               
other good reason  for legislation is the fiscal  note that would                                                               
ensure   appropriations  for   a  management   regime  that   the                                                               
legislature supported,  which the department  likes as well.   He                                                               
emphasized that he would definitely  consider the controversy and                                                               
the   failure  of   past   legislation   before  doing   anything                                                               
administratively.    Typically,  the  department's  ILMAs  aren't                                                               
subject to controversy or a separate piece of legislation.                                                                      
                                                                                                                                
REPRESENTATIVE  McGUIRE  reiterated  her  belief  that  the  ILMA                                                               
process is  important.   She interpreted  Commissioner Pourchot's                                                               
comments to mean  that "a statement by the borough  is one thing,                                                               
a statement by the legislature is  another thing."  In this case,                                                               
there are two potentially contradictory statements.                                                                             
                                                                                                                                
Number 2535                                                                                                                     
                                                                                                                                
CO-CHAIR SCALZI noted his respect  for Commissioner Pourchot.  He                                                               
then inquired as to the status of the Kodiak Island transfer.                                                                   
                                                                                                                                
COMMISSIONER POURCHOT said  that the department is  aware of this                                                               
possible  trade at  Chirikoff Island.   He  noted that  there are                                                               
federal  grazing  leases,  although  the  U.S.  Fish  &  Wildlife                                                               
Service  isn't particularly  keen  on  maintaining those  grazing                                                               
leases  nor on  the wildlife  values  of the  island in  general.                                                               
There has  been the suggestion that  the state engage in  a trade                                                               
for another island such as  Marmot Island.  Commissioner Pourchot                                                               
recalled that some  DNR staff will be meeting with  the U.S. Fish                                                               
& Wildlife Service soon in order to explore this possibility.                                                                   
                                                                                                                                
COMMISSIONER POURCHOT  noted that historically, land  trades with                                                               
the federal  government have  proven to be  huge "sinks"  of time                                                               
and  energy, and  often haven't  led to  anything.   However, the                                                               
U.S. Fish &  Wildlife Service seems to be interested  in this "if                                                               
not pushing it a little bit."   Still, there are many regulations                                                               
and  procedures.   Furthermore,  Commissioner Pourchot  expressed                                                               
his  hesitance in  "going down  their road"  unless there's  real                                                               
value to the state.  Therefore, he said he was cautious.                                                                        
                                                                                                                                
Number 2695                                                                                                                     
                                                                                                                                
CO-CHAIR  SCALZI  turned  to  Sitkinak  [Island]  that  houses  a                                                               
lighthouse.  If Sitkinak is  moved into state hands, he expressed                                                               
the need for keeping the  buildings and facilities on that island                                                               
for hunters  or those  who may be  shipwrecked.   Co-Chair Scalzi                                                               
suggested that the department defer  to the Kodiak Island Borough                                                               
to determine their wishes.                                                                                                      
                                                                                                                                
COMMISSIONER POURCHOT noted that  the department has checked with                                                               
the borough and he wasn't sure how enthusiastic they were.                                                                      
                                                                                                                                
CO-CHAIR  SCALZI continued  with  the issue  of critical  habitat                                                               
areas.   For  example, the  [Alaska  Department of  Fish &  Game]                                                               
recently banned  mariculture expansion  and jet skis  in Kachemak                                                               
Bay.   He asked  if Commissioner Pourchot  has any  concerns that                                                               
the critical habitat  areas may not be doing  what they intended,                                                               
[that is  to say] overregulating  actions on some of  these uses.                                                               
He also asked what the  commissioner saw with the revisitation of                                                               
the critical habitat area issue.                                                                                                
                                                                                                                                
COMMISSIONER  POURCHOT pointed  out that  the land  management of                                                               
critical habitat  areas was transferred to  the Alaska Department                                                               
of  Fish  & Game  (ADF&G).    The  management decisions  are  the                                                               
primary  responsibilities  of   ADF&G.    However, DNR  did  have                                                               
involvement with the mariculture issue  due to the leasing of the                                                               
bed and  the water column.   Still, great deference was  given to                                                               
ADF&G in terms  of the biology.  He noted  that DNR was concerned                                                               
with  continued public  use of  clam beaches,  although it  was a                                                               
moderate  position.   Also, DNR  was  involved with  the jet  ski                                                               
issue, but only as it related to Kachemak Bay State Park.                                                                       
                                                                                                                                
Number 2885                                                                                                                     
                                                                                                                                
CO-CHAIR  SCALZI turned  to the  power bill  and the  intertie to                                                               
Fairbanks through Tanana Flats and inquired as to its status.                                                                   
                                                                                                                                
COMMISSIONER POURCHOT  informed the  committee that  the decision                                                               
to grant the right-of-way was  taken under reconsideration, which                                                               
is a  formal process  by the DNR  commissioner.   Several studies                                                               
were done  in order  to examine  some of  the points  that people                                                               
raised  and  suggested  needed  further  work.   At  the  end  of                                                               
February, Commissioner  Pourchot issued a final  decision for the                                                               
department to approve  the right-of-way that would  go from Healy                                                               
to Fairbanks via the Tanana Flats.                                                                                              
                                                                                                                                
TAPE O1-44, SIDE B                                                                                                              
                                                                                                                                
COMMISSIONER  POURCHOT noted  that in  recent weeks  there was  a                                                               
motion before the  court to enjoin or obtain  a restraining order                                                               
for further  work, which  is being handled  by the  Department of                                                               
Law.   He recalled that motions  were due this week.   There will                                                               
be  some continuing  effort.   Commissioner Pourchot  pointed out                                                               
that the  court action raised  some issues that had  not surfaced                                                               
before.   Commissioner  Pourchot  expressed  confidence that  the                                                               
work would proceed and the project would move forward.                                                                          
                                                                                                                                
Number 2882                                                                                                                     
                                                                                                                                
REPRESENTATIVE STEVENS inquired as  to what Commissioner Pourchot                                                               
would like  to accomplish  in the  remaining two  years if  he is                                                               
confirmed.                                                                                                                      
                                                                                                                                
COMMISSIONER  POURCHOT remarked  that  [in many  areas] he  would                                                               
stay  the course  by  continuing  some of  the  things that  were                                                               
started.   However, he noted  that DNR  has dealt with  some very                                                               
severe budget cuts over the last  several years.  One of the ways                                                               
DNR was  able to handle those  budget cuts and continue  the work                                                               
was  through computer-based  work.   Work still  remains in  that                                                               
area.   He noted that  the Senate recently approved  DNR's budget                                                               
item  to  complete some  of  that  work.   Commissioner  Pourchot                                                               
expressed his  commitment to review how  much more computer-based                                                               
work can  be put online,  which would provide a  two-fold benefit                                                               
by better serving the public  and DNR staff by having information                                                               
available earlier.                                                                                                              
                                                                                                                                
COMMISSIONER  POURCHOT  addressed  the   park  system,  which  he                                                               
believes to be a fine system  in terms of land and resource base.                                                               
However,  the park  system is  very strapped  for its  management                                                               
capabilities.   Furthermore, there  are huge amounts  of deferred                                                               
maintenance for the state parks.   Therefore, one of his goals is                                                               
to make basic  improvements in the state parks as  well as to put                                                               
a  little more  resources in  that system  in order  to meet  the                                                               
deferred maintenance projects as well  as some of the maintenance                                                               
staff and rangers.                                                                                                              
                                                                                                                                
COMMISSIONER  POURCHOT  noted that  the  department  has met  the                                                               
great  growth  in oil  and  gas  leasing and  related  activities                                                               
through help from the legislature.   He noted that the department                                                               
is  meeting  with  the  companies  regarding  next  year's  field                                                               
season, which is  winter.  He expected another big  year in terms                                                               
of development plans,  participating areas, and new  units.  That                                                               
means a  lot of  work is  going on, much  of which  is associated                                                               
with developing new oil.  New  oil results in new revenue and new                                                               
jobs.   From  the department's  standpoint, it's  quite a  bit of                                                               
work,  which   [resulted]  in  the  department   asking  for  and                                                               
receiving additional  resources from  the legislature.   Now, the                                                               
department  is left  to  create a  solid,  efficient system  with                                                               
better paid well-qualified people.                                                                                              
                                                                                                                                
Number 2641                                                                                                                     
                                                                                                                                
REPRESENTATIVE McGUIRE related  her expectation that Commissioner                                                               
Pourchot will  be confirmed and noted  how nice it is  to discuss                                                               
his vision.   She then  turned to  the issue of  aquatic farming.                                                               
Representative McGuire  mentioned that  when talking  with ADF&G,                                                               
it  views  DNR  as  an   equal  partner  in  the  development  or                                                               
nondevelopment  of [aquatic  farming].    She asked  Commissioner                                                               
Pourchot  if  he viewed  aquatic  farming  as a  viable  economic                                                               
development  opportunity for  the state.   She  noted that,  on a                                                               
casual  basis,  she  has  discussed ideas  such  as  royalty,  or                                                               
leasing, or performance bonds.                                                                                                  
                                                                                                                                
COMMISSIONER  POURCHOT  framed his  remarks  by  noting that  DNR                                                               
staff   aren't   biologists   and    thus   there   are   disease                                                               
considerations  and limited  use  of nutrients  in  the water  to                                                               
which he is unable to comment.   However, it seemed that Alaska's                                                               
coastline  and broad  water  resources  provide opportunities  to                                                               
develop aquatic farms.  The  department views this issue from the                                                               
realm of  its constitutional  charge of  common use  of resources                                                               
and  fair treatment  of  applicants  or users.    In DNR's  view,                                                               
aquatic  farming is  not that  different from  those who  want to                                                               
lease land  for various  things.  Furthermore,  it is  similar in                                                               
that  there   is  limited  water   as  there  is   limited  land.                                                               
Commissioner  Pourchot said,  "If there's  ... jobs  and economic                                                               
opportunities and it can be  done in a biologically sound manner,                                                               
we work towards those goals and  we think, in this case, that ...                                                               
there are ...  potentials that could ... continue  to be explored                                                               
and used.   And ...  we are  prepared to, within  those confines,                                                               
make leases."                                                                                                                   
                                                                                                                                
REPRESENTATIVE  McGUIRE remarked  that she  would appreciate  the                                                               
commissioner  and DNR  staff spending  time on  this issue.   She                                                               
expressed  concern  that  the  current  draft  regulations  would                                                               
thwart a  future in aquatic  farming in  Alaska.  She  noted that                                                               
with other  resources Alaska has  been able to manage  for common                                                               
use as well as economic benefit.                                                                                                
                                                                                                                                
Number 2430                                                                                                                     
                                                                                                                                
VICE CHAIR FATE  noted a perception in the state  that DNR favors                                                               
an  environmental approach  over  that approach  that might  help                                                               
develop the state's  resources.  He commented  on the bureaucracy                                                               
a small  entrepreneur faces.   Small entrepreneurs  seem to  be a                                                               
thing of the past, although that  is often what a good economy is                                                               
founded  on.   Therefore,  he inquired  as  to what  Commissioner                                                               
Pourchot [and  the department] was going  to do in an  attempt to                                                               
reverse that and help Alaska's economy.                                                                                         
                                                                                                                                
COMMISSIONER  POURCHOT  pointed out  that  DNR  has a  number  of                                                               
[ongoing] programs  such as oil  and gas leasing that  makes land                                                               
available.  For  example, last November 713,000 acres  of oil and                                                               
gas  land was  sold.   This  last full  year  over 12,000  mining                                                               
claims  were  entered  into  and   for  which  permit  fees  were                                                               
collected.    Also,  the  department  is  again  having  regular,                                                               
predictable,   and  substantial   land   sales  to   individuals.                                                               
Therefore, he  felt that the department  is doing a lot  in terms                                                               
of development and  making land available and  useable.  However,                                                               
he agreed with  Vice Chair Fate in regard to  the complexities of                                                               
the process and  the public's perception.  That is,  in part, due                                                               
to the fairly complicated statutes provided by the legislature.                                                                 
                                                                                                                                
COMMISSIONER  POURCHOT identified  another aspect  as the  courts                                                               
and the  taking of  shortcuts.   For example,  last fall  [it was                                                               
discovered] that  the department,  which had been  renewing water                                                               
rights  and sending  them out,  needed  a process  with a  public                                                               
hearing  and  review.    That  court case  has  resulted  in  the                                                               
department having a  water bill in an attempt to  correct some of                                                               
the  process.   When things  are pushed  too far,  too fast,  and                                                               
something  or  somebody is  left  out,  it  catches up  with  the                                                               
department.   The result is  that the  new process is  built into                                                               
the future  process and things  are fairly sluggish.   Therefore,                                                               
he  has  been reading  the  regulations  and [having]  briefings.                                                               
Those  briefings  consider  the  burden to  the  user  group  and                                                               
whether everything in the regulations are necessary.                                                                            
                                                                                                                                
VICE  CHAIR FATE  asked,  "Will  you do  everything  you can  ,as                                                               
commissioner, to  help us  ... do  a good  job of  developing the                                                               
resources in the  state in a sound  and, certainly, environmental                                                               
manner?"   Vice Chair  Fate related his  belief that  [the state]                                                               
could do more in developing its resources.                                                                                      
                                                                                                                                
COMMISSIONER POURCHORT replied yes.                                                                                             
                                                                                                                                
Number 2066                                                                                                                     
                                                                                                                                
REPRESENTATIVE   STEVENS  moved   that   the  committee   forward                                                               
Commissioner Pourchot's  name to the  joint session of  the House                                                               
and Senate for consideration of  appointment to the Department of                                                               
Natural Resources.  There being no objection, it was so ordered.                                                                
                                                                                                                                
The committee took an at-ease from 2:20 p.m. to 2:25 p.m.                                                                       
                                                                                                                                
HB 241-RAIL AND UTILITY CORRIDOR TO CANADA                                                                                    
                                                                                                                                
VICE CHAIR FATE announced that  the final order of business would                                                               
be HOUSE  BILL NO. 241,  "An Act  relating to a  railroad utility                                                               
corridor for  extension of the  Alaska Railroad to Canada  and to                                                               
extension of the Alaska Railroad  to Whitehorse, Yukon Territory,                                                               
Canada."                                                                                                                        
                                                                                                                                
REPRESENTATIVE   JEANETTE   JAMES,  Alaska   State   Legislature,                                                               
testified as the sponsor of HB 241.   She noted that she has been                                                               
working on this issue for some  time and filed HB 241 because she                                                               
wanted  to  have  a  definite alignment  of  the  rail  corridor.                                                               
Currently,  there  is a  "center-line"  survey  from the  air  to                                                               
identify where the corridor would  be located, which is along the                                                               
highway.  She related her belief  that there are some gas rights-                                                               
of-way along the  highway.  She explained that  the rail corridor                                                               
has two endings  one of which extends to the  Canadian border and                                                               
the  other proceeds  north at  Tetlin  and comes  down the  Ladue                                                               
River and  continues through  Carmacks and  Faro to  Watson Lake.                                                               
Although that is  a resource rich area, it seems  unlikely that a                                                               
railroad would  be put  through the  Yukon Territory  and connect                                                               
with the British Columbia Rail  without going through Whitehorse.                                                               
Furthermore,  although the  Ladue River  is state-owned  land, it                                                               
includes  wetlands and  habitat  and  thus it  may  be easier  to                                                               
proceed  down  the  highway,  an   area  that  has  already  been                                                               
disturbed.  Therefore,  HB 241 doesn't specify  going through the                                                               
Ladue  River, it  merely  says  that the  rail  would  go to  the                                                               
Canadian border  and on  to Whitehorse.   This  legislation would                                                               
authorize  the  railroad to  do  surveying  of  a 500  foot  wide                                                               
corridor  to   be  utilized   for  railroad   transportation  and                                                               
utilities.   After the  extensive survey  has been  prepared, the                                                               
survey would be  submitted to the State of Alaska  who would then                                                               
transfer  the land  within the  corridor to  the Alaska  Railroad                                                               
Corporation (ARRC).   For the land that is not  state land, there                                                               
would  be  authorization  to proceed  in  obtaining  right-of-way                                                               
permission.   She said that she  didn't know what had  to be done                                                               
once the  corridor reaches the  Canadian border;  the corporation                                                               
would have to deal  with that.  She pointed out  that there is no                                                               
financial help with this proposal  and thus she assumed that ARRC                                                               
would find its own funding for this.                                                                                            
                                                                                                                                
REPRESENTATIVE JAMES  informed the  committee of the  dispute she                                                               
has with  the State  of Alaska,  which would  prefer to  give the                                                               
railroad a right-of-way.   However, she felt that  "they" need to                                                               
own the  right-of-way because ARRC  is a  state-owned corporation                                                               
and  all of  the railroad's  current rights-of-way  belong to  it                                                               
save those passing through military  bases.  Therefore, the issue                                                               
of  giving [the  right-of-way]  to the  railroad isn't  realistic                                                               
because it's transferring  it.  This situation would  be the same                                                               
as  transferring land  from the  state to  the Alaska  Industrial                                                               
Development and  Export Authority (AIDEA).   She also  noted that                                                               
there will be testimony regarding  whether the gas line should be                                                               
placed in  the railroad corridor,  an issue for which  she didn't                                                               
have an answer.   However, she explained that one  of the reasons                                                               
for HB  241 is to avoid  a situation in  which a gas line  is the                                                               
road where the railroad is to  be placed.  She mentioned that she                                                               
has had  extensive conversations with  the oil companies  on this                                                               
matter.   The [difficulty]  is who would  receive the  money from                                                               
the oil companies for  the gas line [if it were  to be located in                                                               
the railroad  right-of-way].  The  state would probably  claim it                                                               
should receive  that money.   However, she suggested that  if the                                                               
gas line was  in the railroad corridor and the  industry paid the                                                               
railroad, the railroad would build  it because the railroad could                                                               
bond for that future revenue.                                                                                                   
                                                                                                                                
REPRESENTATIVE JAMES acknowledged that  there is much controversy                                                               
surrounding the railroad as it was  setup to operate as an almost                                                               
private  corporation  owned by  state  funds.   Furthermore,  the                                                               
legislature  continually   attempts  to  hamper   the  railroad's                                                               
efforts to run like a  private corporation.  Representative James                                                               
recognized  that many  would like  to sell  the railroad  and she                                                               
believes that  someone will be  interested in such a  purchase in                                                               
the not-so-distant future, especially if  it looks as if the line                                                               
is going to be connected to the  Lower 48.  She remarked that she                                                               
would be willing  to sell ARRC whenever someone wants  to pay the                                                               
state what it's worth.                                                                                                          
                                                                                                                                
Number 1485                                                                                                                     
                                                                                                                                
HAL   COOPER    testified   via   teleconference    saying   that                                                               
Representative James  has requested that  he speak in  support of                                                               
HB 241.   He said that HB  241 is a very necessary  first step in                                                               
beginning the  connection of  the rail  lines between  Alaska and                                                               
Canada and the  Lower 48.  He  felt that this proposal  is a very                                                               
useful and necessary  step to develop the railway  and create the                                                               
corridor.                                                                                                                       
                                                                                                                                
PAUL    TAYLOR,    Professional     Engineer,    testified    via                                                               
teleconference.  Mr. Taylor provided the following testimony:                                                                   
                                                                                                                                
     A key  component of the location  and economic strategy                                                                    
     of an Alaska to  British Columbia railway corridor will                                                                    
     be  the  location  of the  route  through  the  Central                                                                    
     Yukon.   I  believe the  Yukon extension  investigation                                                                    
     should focus on  Whitehorse as a major  terminal on the                                                                    
     main  track.    Route  selection  studies  should  give                                                                    
     intense examination  of the line of  track leading from                                                                    
     the  Ladue  River  Valley of  the  Alaska-Yukon  border                                                                    
     through  the vicinity  of Carmacks,  Yukon.   Then  the                                                                    
     track  corridor  would  generally follow  the  Klondike                                                                    
     Highway down  to Whitehorse.  Reasons  for this routing                                                                    
     are numerous.  With  Carmacks established as a terminal                                                                    
     on  the  Alaska  to British  Columbia  Transcontinental                                                                    
     main line,  the immediate Carmacks region  provides the                                                                    
     potential  for serious  mineral development.   What  is                                                                    
     more is that link either  by a branch line or continued                                                                    
     utilization  of  the  Robert  Gamble  Highway  provides                                                                    
     transportation  to the  Faro Roust  (ph) River  mineral                                                                    
     sector, which  adds even more freight  potential to the                                                                    
     Carmacks terminal.   The  railroad route  from Carmacks                                                                    
     to Whitehorse  has been studied  in detail in  the past                                                                    
     with  the line  of  railroad shown  to  be superior  in                                                                    
     grade and alignment.  Carmacks  to Skagway route offers                                                                    
     immense potential for tourism cruise trains.                                                                               
                                                                                                                                
     The  Central  Yukon   route  and  economic  feasibility                                                                    
     investigation  must  include  every  port  framing  the                                                                    
     engineering considerations, a  conversion plan, and the                                                                    
     economic  consequences to  covert  the  White Pass  and                                                                    
     Yukon  route  to  standard  gauge   in  order  for  the                                                                    
     transcontinental railroad  to be linked to  the Port of                                                                    
     Skagway,  the Yukon's  gateway.    Carmacks to  Skagway                                                                    
     interconnection   will  be   vital   to  the   economic                                                                    
     integration of the Alaska  to British Columbia Railway.                                                                    
     The mutimodal  railroad corridor  must, by  its obvious                                                                    
     benefits  to the  overall project,  be included  in any                                                                    
     feasibility  study  of  railroad  construction  in  the                                                                    
     Yukon.   One  could  also argue  that  the Carmacks  to                                                                    
     Skagway  corridor could  be constructed  independently,                                                                    
     in  advance of  the  Alaska Railroad  extension to  the                                                                    
     Yukon.                                                                                                                     
                                                                                                                                
Mr. Taylor concluded  by noting that he would  mail other remarks                                                               
to the committee this afternoon.                                                                                                
                                                                                                                                
Number 1223                                                                                                                     
                                                                                                                                
DAVE  BROADBENT  (PH),  Canadian Arctic  Railway,  testified  via                                                               
teleconference.   He felt  that HB 241  [provides the  hope] that                                                               
this railway will  happen some day.   He applauded Representative                                                               
James' attempt, through  HB 241, to promote the  extension of the                                                               
railway.  He noted that once  Canada gets going on this, it would                                                               
headquarter any development in Canada out of Whitehorse.                                                                        
                                                                                                                                
Number 1069                                                                                                                     
                                                                                                                                
JOHN   PORTSCHELLER   testified    via   teleconference.      Mr.                                                               
Portscheller  remarked  that  the most  recent  (indisc.)  papers                                                               
provide excellent examples for the  arguments in opposition to HB
241.    Reviewing  the  proposal   from  the  civil  perspective,                                                               
environmental questions  would have  to be addressed  well before                                                               
route  selection is  discussed.   However, he  didn't see  even a                                                               
vague   recommendation   to   address  those   factors   in   the                                                               
legislation.   Mr. Portscheller informed  the committee  that the                                                               
area's    fish    and   wildlife    environmental    organization                                                               
representatives  are  staunchly   opposed  to  this  development.                                                               
There are  many reasons that  support stepping back and  taking a                                                               
second look  at such a proposal  as this.  He  stated one reason:                                                               
"If  a  large scale  economic  development  like  this is  to  go                                                               
forward, it should  stand the age-old litmus  test of determining                                                               
whether  or not  the private  sector  would push  forward such  a                                                               
project."  However, there seems  to be little indication that the                                                               
private  sector  in  Alaska  has  the  willingness  or  financial                                                               
capability  to take  on such  development.   This seems  to be  a                                                               
backward  approach in  that it  essentially  forces the  project.                                                               
Furthermore,  Mr.  Portscheller  expressed the  need  to  address                                                               
environmental   concerns  and   physical  factors   as  well   as                                                               
considering  the total  privatization  of such  a project  versus                                                               
having the government take the lead.                                                                                            
                                                                                                                                
Number 0899                                                                                                                     
                                                                                                                                
REPRESENTATIVE  JAMES noted  that she  has been  working on  this                                                               
issue  for nine  years and  has  wondered when  someone from  the                                                               
environmental community would  object.  She said  that she hasn't                                                               
had  any  objections  before  now.   She  expressed  interest  in                                                               
meeting with Mr. Portscheller.                                                                                                  
                                                                                                                                
MR. PORTSCHELLER  said "we" would  be interested in  meeting with                                                               
Representative James.   He  noted that  he isn't  affiliated with                                                               
the local  environmental or  fish and  game organizations  and is                                                               
speaking only as a member of the community of Tok.                                                                              
                                                                                                                                
Number 0699                                                                                                                     
                                                                                                                                
BILL  BRITT,  State  Gas  Pipeline  Coordinator,  Office  of  the                                                               
Commissioner,  Department of  Natural Resources  (DNR), testified                                                               
via teleconference.   Mr.  Britt said that  he has  the following                                                               
two concerns with HB 241:                                                                                                       
                                                                                                                                
     The  first  is  that  the   bill  does  not  allow  the                                                                    
     Department  of  Natural   Resources  to  protect  valid                                                                    
     existing  land  rights  on  land   that  DNR  would  be                                                                    
     required  to  convey to  the  Alaska  Railroad.   These                                                                    
     rights  could  well   include  the  TAPS  (Trans-Alaska                                                                    
     Pipeline  System) right-of-way.    We may  not wish  to                                                                    
     transfer portions  of the TAPS right-of-way  even as we                                                                    
     are  processing  an  application for  renewal  of  that                                                                    
     right-of-way.   Secondly, the bill  does not  allow the                                                                    
     commissioner of DNR to reject  portions of the corridor                                                                    
     where there might be a  greater state interest involved                                                                    
     in the  land such as a  gas pipeline.  The  bill could,                                                                    
     thus, complicate  a gas pipeline project  by:  removing                                                                    
     possible   gas   pipeline   right-of-way   from   state                                                                    
     ownership  even  as  an  application  may  be  pending;                                                                    
     removing  possible  construction  material  sites  from                                                                    
     state   ownership;  creating   another  landowner   for                                                                    
     portions   of  the   right-of-way;  and   creating  the                                                                    
     possibility   that  the   railroad  would   be  granted                                                                    
     condemnation  authority over  private lands  that would                                                                    
     be within a gas pipeline  right-of-way.  We may wish to                                                                    
     retain   as  much   control  over   the  gas   pipeline                                                                    
     authorization  process as  possible  at  this stage  in                                                                    
     that  project.   And this  bill appears,  to me,  to be                                                                    
     contrary to that end.                                                                                                      
                                                                                                                                
     My  colleagues in  the Division  of  Mining, Land,  and                                                                    
     Water have  expressed several other concerns.   ... The                                                                    
     first being that expenses  associated with the transfer                                                                    
     are  not made  clear; who  bears those  expenses?   The                                                                    
     second is:   there ... is no ability  for the (indisc.)                                                                    
     to retain  sub-surface rights on  the lands  that would                                                                    
     be conveyed.   And the third  is:  there appears  to be                                                                    
     no  upper limit  on the  amount of  land that  could be                                                                    
     required to be transferred.   The corridor is described                                                                    
     in the bill  as at least 500 feet wide,  but no maximum                                                                    
     amount is identified.                                                                                                      
                                                                                                                                
Number 0510                                                                                                                     
                                                                                                                                
VICE CHAIR FATE  asked if any thought had been  given to a common                                                               
corridor   so   that   [the  department]   could   facilitate   a                                                               
transportation facility for both gas  and the railroad as well as                                                               
any future considerations.                                                                                                      
                                                                                                                                
MR.  BRITT answered  that there  is no  prohibition against  more                                                               
than one  use of  a transportation  corridor.   The rights-of-way                                                               
the [department]  grants are nonexclusive rights-of-way  and thus                                                               
more than one use can occur  within a right-of-way as long as the                                                               
uses are compatible.  Such occurs frequently.                                                                                   
                                                                                                                                
Number 0444                                                                                                                     
                                                                                                                                
REPRESENTATIVE  JAMES  indicated  that  [Mr.  Britt's]  testimony                                                               
highlighted the reasons  why the proposal won't  work without any                                                               
indication to help  make it work.  She said  that she was willing                                                               
to add any language to make  this work.  Furthermore, she assumed                                                               
that the issues identified by Mr.  Britt would be issues that the                                                               
railroad, who would  survey this route, would be  reviewing.  She                                                               
didn't expect  the railroad  to travel  over an  already existing                                                               
right-of-way.   Moreover,  Representative  James emphasized  that                                                               
this  corridor  was  present  before  there was  talk  of  a  gas                                                               
pipeline not to mention that  the railroad corridor will probably                                                               
be present  after the  gas pipeline is  finished.   She expressed                                                               
her belief that it is important  that this [corridor] be done now                                                               
and there should  be some coordination.  She  mentioned that NASA                                                               
had  flown over  this corridor  with high-resolution  photography                                                               
because the  federal government wants this  railroad corridor and                                                               
thus  there may  be federal  money.   Representative James  said,                                                               
"I'm really serious about this  issue and I want some cooperation                                                               
from DNR and other agencies of the state to make this happen."                                                                  
                                                                                                                                
MR. BRITT  clarified that  he was  commenting on  HB 241  not the                                                               
feasibility of  an extension of  the railroad.   He said  that he                                                               
believes  his  aforementioned  concerns  have  been  communicated                                                               
before, at least in the  fiscal note.  Therefore, there shouldn't                                                               
be anything new in his testimony.                                                                                               
                                                                                                                                
Number 0116                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GREEN  related  his  understanding  that  HB  241                                                               
requires  condemnation rights  and many  other requirements,  yet                                                               
there  is no  fiscal note  because  the expectation  is that  the                                                               
railroad will secure the financing.                                                                                             
                                                                                                                                
REPRESENTATIVE JAMES agreed with that understanding.                                                                            
                                                                                                                                
REPRESENTATIVE GREEN  inquired as to  what the railroad  must do.                                                               
He asked if the railroad would have the ability to decline this.                                                                
                                                                                                                                
REPRESENTATIVE JAMES interjected that  [HB 241] merely authorizes                                                               
the railroad to  do this.  In further  response to Representative                                                               
Green, Representative  James confirmed  that she has  spoken with                                                               
the railroad.                                                                                                                   
                                                                                                                                
REPRESENTATIVE  JAMES informed  the committee  that U.S.  Senator                                                               
Ted Stevens  indicated to the  railroad last  year or so  that he                                                               
wanted the railroad to determine  the cost to extend the railroad                                                               
to  Delta  for  a  missile  defense system.    The  railroad  did                                                               
determine the  cost for  such and  some work had  to be  done for                                                               
that, which she recalled was $250 million ...                                                                                   
                                                                                                                                
TAPE 01-45, SIDE A                                                                                                              
                                                                                                                                
REPRESENTATIVE  JAMES  said that  when  it  comes to  building  a                                                               
missile  defense   system,  this   proposed  corridor   would  be                                                               
advantageous in order to bring  in the materials.  Therefore, she                                                               
suspected that  there might be  some federal money  available for                                                               
the  corridor or  perhaps some  large railroad  companies may  be                                                               
interested in  this and may  come to the  table with money.   She                                                               
noted  that  there  may  also   be  some  bonding  possibilities.                                                               
However,  she  clarified  that  she   isn't  present  to  do  the                                                               
financing.                                                                                                                      
                                                                                                                                
Number 0098                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GREEN expressed  concern that  in order  to start                                                               
this project  the determination of where  the line can go  has to                                                               
be made.   Such work, as illustrated with the  railroad's work on                                                               
the  Delta  connection,   is  "no  lean  task."     Therefore,  a                                                               
significant  amount of  money  will be  required  to establish  a                                                               
feasible route  or routes.   Representative Green  suggested that                                                               
there are a  sequence of events such as aerial  photography to on                                                               
the  ground [surveys]  to ownership  that would  take some  time.                                                               
Therefore, he  indicated concern with  the time it would  take to                                                               
do what is laid out in the bill.                                                                                                
                                                                                                                                
REPRESENTATIVE   JAMES  turned   to   U.S.  Senator   Murkowski's                                                               
legislation.     She  explained  that  the   Rails  to  Resources                                                               
legislation authorized  a bilateral commission, 12  Americans and                                                               
12 Canadians.  There was a $6  million fiscal note on the US side                                                               
to  create this  commission  in order  to  perform a  feasibility                                                               
study in the  next three years.  At this  point, "we" are waiting                                                               
for  the Canadians  to  pass  the same  legislation  with a  like                                                               
fiscal note,  after which  the commission  will be  appointed and                                                               
the feasibility study will be done.   She estimated that it would                                                               
probably cost  about $10-$12 million  to perform  the feasibility                                                               
study.   However, Representative James  pointed out that  it will                                                               
be difficult  for the commission  to perform a  feasibility study                                                               
if there is  no authority to have any routes.   Therefore, HB 241                                                               
is before the committee.                                                                                                        
                                                                                                                                
REPRESENTATIVE JAMES  informed the committee that  Dr. Paul Metz,                                                               
University  of  Alaska,  has  made  some  grant  applications  to                                                               
perform a  complete geological  study of  the existing  rail from                                                               
Fairbanks to  Seward as well as  "this" line.  She  presumed that                                                               
he would obtain that grant and work on it this year.                                                                            
                                                                                                                                
REPRESENTATIVE JAMES said that [the  corridor] would provide room                                                               
for all the different types  of transportation and utility things                                                               
that "we" want to go down the  highway.  This is the beginning in                                                               
that  it determines  where  that  is and  what  works.   The  gas                                                               
pipeline wouldn't  need the same  type of topography that  a rail                                                               
would.  The topography is critical for a railroad.                                                                              
                                                                                                                                
Number 0401                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN  recalled [testimony] that there  might be a                                                               
commonality between  the [gas] pipeline  and the rail.   He could                                                               
see the commonality between the  pipeline and the highway whereas                                                               
the  grades  required  for  railroads   aren't  necessary  for  a                                                               
pipeline or a highway.                                                                                                          
                                                                                                                                
REPRESENTATIVE JAMES  agreed, but  noted that  she has  been told                                                               
that gas runs better when its flat.                                                                                             
                                                                                                                                
REPRESENTATIVE GREEN noted  that there are a  myriad of pipelines                                                               
that aren't  flat.  Representative  Green expressed  concern that                                                               
HB 241  goes far beyond the  feasibility aspect.  He  remarked on                                                               
the need to  do a feasibility study that would  specify what type                                                               
of land is where.                                                                                                               
                                                                                                                                
Number 0500                                                                                                                     
                                                                                                                                
REPRESENTATIVE  JAMES  commented  on  things  being  "studied  to                                                               
death."  Representative James said:                                                                                             
                                                                                                                                
     I want  to have something  that says we're going  to go                                                                    
     there.   If  you don't  like  the way  the language  is                                                                    
     written,  I'll  fix  it.   ...  I  want  to  authorize,                                                                    
     something on paper that authorizes  the fact that there                                                                    
     is  an  opportunity  to  have a  rail  corridor  and  a                                                                    
     utility corridor  going into Canada.   And that's going                                                                    
     to  take something.    If I  can't get  it  out of  the                                                                    
     people who  work for the state  and I can't get  it out                                                                    
     of the  legislature, there's no  point in  even talking                                                                    
     about it.  And we  might as well tell Washington, D.C.,                                                                    
     we don't want  any kind of industry,  ... expansion, or                                                                    
     ... economic activity  in the state.  You  got to start                                                                    
     some place.   And I  understand the biggest  argument I                                                                    
     have with  people is  where's the  money going  to come                                                                    
     from.    You  know,  if  you  have  an  ability  to  do                                                                    
     something  and   there's  an  opportunity   out  there,                                                                    
     somebody will  come forward  with the  money.   It just                                                                    
     happens.   ...  I'm  saying  that you  got  to have  an                                                                    
     opportunity  for  people  to ...  see  the  opportunity                                                                    
     before the money  is going to come forward.   ... There                                                                    
     is nothing  that cannot be  accomplished if  you really                                                                    
     want to do  it and if the desire of  getting to the end                                                                    
     result is there; and that's where  I'm at.  If we don't                                                                    
     have some economic activity in  this state, we're going                                                                    
     to dry up.                                                                                                                 
                                                                                                                                
REPRESENTATIVE GREEN  pointed out that  the people who  offer the                                                               
money  do  feasibility  studies.   The  feasibility  study  would                                                               
include "can you get there,"  the environmental concerns, and the                                                               
economics.   He said that he  wouldn't have a problem  with such;                                                               
however,  he suggested  that [HB  241] goes  far beyond  that and                                                               
assumes that a railroad [corridor] will be built.                                                                               
                                                                                                                                
REPRESENTATIVE JAMES disagreed.  In  response to Vice Chair Fate,                                                               
she  announced   that  all   references  to   "Whitehorse,  Yukon                                                               
Territory" in HB  241 should be changed to  refer to "Whitehorse,                                                               
Yukon."                                                                                                                         
                                                                                                                                
Number 0839                                                                                                                     
                                                                                                                                
CO-CHAIR  SCALZI moved  that the  committee  adopt the  following                                                               
amendment:                                                                                                                      
                                                                                                                                
     Page 1, line 2; page 3, lines 21, 22, and 25,                                                                              
          Delete "Territory"                                                                                                    
                                                                                                                                
There being no objection, the amendment was adopted.                                                                            
                                                                                                                                
Number 0942                                                                                                                     
                                                                                                                                
REPRESENTATIVE McGUIRE moved  to report HB 241 as  amended out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  note.    There  being no  objection,  CSHB  241(RES)  was                                                               
reported from the House Resources Standing Committee.                                                                           
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Resources Standing Committee meeting was adjourned at 3:04 p.m.                                                                 

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