Legislature(2011 - 2012)BARNES 124

01/26/2011 01:00 PM House RESOURCES


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01:02:16 PM Start
01:02:56 PM Overview(s): Department of Natural Resources - Division of Mining, Land and Water
02:08:30 PM Overview(s): Alaska Department of Fish & Game
02:56:39 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Overviews: TELECONFERENCED
Dept. of Natural Resources - Division of Mining,
Land & Water;
Dept. of Fish & Game - Commissioner's Office
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE RESOURCES STANDING COMMITTEE                                                                             
                        January 26, 2011                                                                                        
                           1:02 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Eric Feige, Co-Chair                                                                                             
Representative Paul Seaton, Co-Chair                                                                                            
Representative Peggy Wilson, Vice Chair                                                                                         
Representative Alan Dick                                                                                                        
Representative Neal Foster                                                                                                      
Representative Bob Herron                                                                                                       
Representative Cathy Engstrom Munoz                                                                                             
Representative Berta Gardner                                                                                                    
Representative Scott Kawasaki                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
OVERVIEW(S):  DEPARTMENT OF NATURAL RESOURCES - DIVISION OF                                                                     
MINING, LAND AND WATER                                                                                                          
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
OVERVIEW(S):  ALASKA DEPARTMENT OF FISH & GAME                                                                                  
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
WYN MENEFEE, Acting Director                                                                                                    
Central Office                                                                                                                  
Division of Mining, Land and Water                                                                                              
Department of Natural Resources (DNR)                                                                                           
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Presented the overview of the Division of                                                                
Mining, Land and Water - Department of Natural Resources.                                                                       
                                                                                                                                
CORA CAMPBELL, Acting Commissioner                                                                                              
Alaska Department of Fish & Game (ADF&G)                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:    Presented  the  overview  of  the  Alaska                                                             
Department of Fish & Game.                                                                                                      
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:02:16 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  ERIC   FEIGE  called   the  House   Resources  Standing                                                             
Committee meeting to  order at 1:02 p.m.   Representatives Feige,                                                               
Seaton, Dick,  Gardner, and  Foster were present  at the  call to                                                               
order.   Representatives Kawasaki,  P. Wilson, Herron,  and Munoz                                                               
arrived as the meeting was in progress.                                                                                         
                                                                                                                                
^Overview(s):   Department  of Natural  Resources  - Division  of                                                               
Mining, Land and Water                                                                                                          
  Overview(s):  Department of Natural Resources - Division of                                                               
                     Mining, Land and Water                                                                                 
                                                                                                                              
1:02:56 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FEIGE announced  that the first order  of business would                                                               
be  an overview  of  the Division  of Mining,  Land  and Water  -                                                               
Department of Natural Resources.                                                                                                
                                                                                                                                
1:03:31 PM                                                                                                                    
                                                                                                                                
WYN  MENEFEE,  Acting  Director,   Central  Office,  Division  of                                                               
Mining, Land  and Water, Department  of Natural  Resources (DNR),                                                               
relayed  that the  mission of  the Division  of Mining,  Land and                                                               
Water is to  acquire and manage state land,  water, and resources                                                               
for the benefit  of present and future Alaskans.   Referring to a                                                               
PowerPoint  presentation and  associated handout,  he noted  that                                                               
the division manages approximately  99 million acres of "uplands"                                                               
and  approximately  65  million  acres  of  tidelands,  submerged                                                               
lands, and  lands under  navigable waters -  for a  total acreage                                                               
roughly  the size  of California  and Oregon  combined -  and has                                                               
received an additional  8 million acres over the  last five years                                                               
from  the  federal  Bureau  of  Land  Management  (BLM)  via  the                                                               
division's  land entitlement  program.   The division  provides a                                                               
foundation for all other land  management occurring in the state;                                                               
provides  authorizations crucial  for  the  development of  state                                                               
land;  provides  revenue to  the  state;  helps provide  jobs  to                                                               
Alaskans; and helps ensure a high quality of life for Alaskans.                                                                 
                                                                                                                                
MR.   MENEFEE  indicated   that   the   division  supports   many                                                               
industries,  projects,  and programs  in  Alaska:   mining,  both                                                               
small and large  scale; oil and gas  exploration and development,                                                               
for example,  by authorizing  the ice roads  on the  North Slope;                                                               
commercial  recreation and  tourism,  such as  docks and  lodges;                                                               
alternative    energy   projects,    such   as    windmills   and                                                               
hydrokinetics; transportation projects;  private, commercial, and                                                               
State construction projects;  communications projects; utilities;                                                               
hunting  and  fishing   guide  industry;  aquaculture;  municipal                                                               
infrastructure; and  personal use  infrastructure.   The division                                                               
has   six  budget   components,  as   illustrated  in   both  the                                                               
aforementioned   PowerPoint  presentation   and  the   associated                                                               
handout, with  a total proposed  fiscal year 2012 (FY  12) budget                                                               
of $23.6 million.  The division  has 207 positions; is located in                                                               
three offices  - Anchorage, Fairbanks, and  Juneau; and maintains                                                               
12  sections,   the  contacts  for   which  are  listed   in  the                                                               
aforementioned handout.                                                                                                         
                                                                                                                                
1:07:15 PM                                                                                                                    
                                                                                                                                
MR.  MENEFEE,   referring  to  the  division's   Realty  Services                                                               
Section, relayed that  it acquires land from the BLM  in order to                                                               
fulfill  territorial  and  statehood  Act  grants;  is  close  to                                                               
acquiring 105  million acres of  such land; serves as  land agent                                                               
for the  State of Alaska;  acquires land for public  purposes via                                                               
purchases,  exchanges, and  settlements; defends  state-ownership                                                               
interests  - for  example, with  regard to  navigable waters  and                                                               
easements; makes title determinations  to support land management                                                               
decisions; maintains  records of state ownership  and defends the                                                               
state's  title;  issues  deeds  and   patents  on  land  sold  or                                                               
transferred; reviews all federal  Alaska Native Claims Settlement                                                               
Act  (ANCSA) conveyances  so as  to defend  state interests;  and                                                               
provides appraisal and survey services for the DNR.                                                                             
                                                                                                                                
MR.  MENEFEE, referring  to the  division's  land Planning  Unit,                                                               
indicated that it sets the  policy regarding how the state's land                                                               
is  to  be   managed;  prepares  and  revises   land  use  plans;                                                               
identifies future  uses of state  land, including lands  for sale                                                               
or transfer;  and acts as  an unorganized borough for  the State.                                                               
There  are 18  area plans,  and  22 management  plans, which  are                                                               
often  done  for other  divisions/departments,  and  the unit  is                                                               
currently revising  the area plans  related to Hatcher  Pass, and                                                               
the  Susitna and  Tanana  Basins.   Referring  to the  division's                                                               
Mining Resources Section, indicated that  it manages the land and                                                               
minerals  on  state  land,  particularly   that  which  has  been                                                               
selected for development;  acts as the land  owner; provides over                                                               
35  different  types of  authorizations;  and  makes state  lands                                                               
available  for  public, commercial,  and  private  uses via  such                                                               
authorizations.   Some  authorizations, though  not all,  involve                                                               
long  processes  and address  complex  situations,  and some  are                                                               
structured via statute or regulation.                                                                                           
                                                                                                                                
MR.  MENEFEE  explained  that  the   division  is  responsive  to                                                               
applications,  and  that  via  some  programs,  the  division  is                                                               
actively encouraging development.  It  is rare, he added, for the                                                               
division to deny an authorization,  though some proposals warrant                                                               
revision,  say, for  example,  for environmental  considerations.                                                               
There has been  an increase in applications, and  so the division                                                               
must  now  also address  an  increasing  backlog.   The  division                                                               
administers mining claims, authorizes  the development of mineral                                                               
resources, has statewide  regulatory authority over reclamations,                                                               
and issues permits  for coal exploration/mining.   As stewards of                                                               
state-owned  land and  resources, the  division ensures  that the                                                               
state's  land  is  available for  development,  that  no  illegal                                                               
actions  are  taking  place  on  the land,  and  that  the  state                                                               
receives  a reasonable  return  for the  use of  its  land.   The                                                               
division  also disposes  of  land via  land  sales and  municipal                                                               
entitlements.     Individuals   can   acquire   state  land   via                                                               
subdivision,  remote recreational  cabin sales,  over-the-counter                                                               
sales,  and  "preference right"  programs.    Via the  division's                                                               
municipal entitlement program,  municipalities can acquire nearby                                                               
land.                                                                                                                           
                                                                                                                                
1:15:20 PM                                                                                                                    
                                                                                                                                
MR. MENEFEE,  on the issue  of water development, noted  that the                                                               
division manages  Alaska's water resources  - though it  does not                                                               
address water  quality issues,  which fall  under the  purview of                                                               
the  Department of  Environmental Conservation  (DEC) -  and this                                                               
means  all water,  regardless of  land ownership.   The  division                                                               
issues  water  rights  and temporary  use  permits,  issues  flow                                                               
reservations  to  protect  aquatic resources,  manages  conflicts                                                               
over  water  use/misuse,  approves   construction  of  damns  and                                                               
monitors   them  for   safety,  and   collects  and   distributes                                                               
hydrologic  data and  assists in  evaluating that  data.   On the                                                               
issue of  litigation support,  he explained  that there  has been                                                               
quite  an increase  in litigation  over the  last several  years,                                                               
though  whenever  possible,  the  division  attempts  to  resolve                                                               
issues  without   resorting  to  litigation,  such   as  via  the                                                               
division's  Recordable  Disclaimers  of Interest  Program.    The                                                               
division files  appeals on faulty  BLM decisions, works  with the                                                               
Department of  Law (DOL)  to address  various legal  actions, and                                                               
defends  the state's  rights against  intrusive federal  actions.                                                               
He opined that it can  be better to litigate strategically rather                                                               
than just respond to suits brought by others.                                                                                   
                                                                                                                                
MR.  MENEFEE  relayed  that  the  division's  [Technical  &  Data                                                               
Management  Section] provides  technical  support,  and that  the                                                               
Director's Office provides administrative support.                                                                              
                                                                                                                                
CO-CHAIR FEIGE  asked Mr.  Menefee to elaborate  on the  issue of                                                               
preference rights.                                                                                                              
                                                                                                                                
MR. MENEFEE  explained that although  there are various  forms of                                                               
preference  rights, they  generally involve  situations in  which                                                               
someone either has a  right to a disposal of land  or has a right                                                               
to  have a  preference  in  the disposal  of  an  interest.   For                                                               
example, if  a person  "had" land before  Alaska became  a state,                                                               
and utilized it and had some  sort of federal authorization on it                                                               
that somehow didn't get recognized  during conveyance, that would                                                               
be considered an  error of omission, and so he/she  could claim a                                                               
preference  right   to  that  land.     The   "preference  right"                                                               
terminology  is  also  used  in  some  of  the  division's  other                                                               
programs.  For  example, if a person were leasing  shore land and                                                               
decided to build  a dock, the division would  consider him/her to                                                               
have  a preference  right to  do so.   He  explained that  the 10                                                               
processed   preference  right   applications  mentioned   in  the                                                               
aforementioned handout  dealt with the possible  disposal of land                                                               
to people  who either had some  sort of pre-existing right  to it                                                               
or were statutorily entitled to it.                                                                                             
                                                                                                                                
MR. MENEFEE, in response to  questions, indicated that litigation                                                               
has a significant and detrimental  impact on the division because                                                               
staff must then  spend a considerable amount of  time - sometimes                                                               
hundreds of  hours - away from  their regular duties in  order to                                                               
gather information  pertinent to the  litigation.  He  added that                                                               
the  division is  in the  process of  documenting how  much staff                                                               
time  is lost  in such  instances,  and so  he would  be able  to                                                               
provide the  committee with those  statistics soon.   In response                                                               
to  another question,  he offered  his  belief that  the type  of                                                               
litigation  the   division  finds  itself  addressing   is  never                                                               
frivolous to  those filing it,  though sometimes the way  they go                                                               
about  proceeding  with the  litigation  can  be misconstrued  as                                                               
being  excessive in  terms of  the volume  of documentation  that                                                               
must then be compiled by the division.                                                                                          
                                                                                                                                
1:27:40 PM                                                                                                                    
                                                                                                                                
MR.  MENEFEE,  in  response  to   comments,  indicated  that  the                                                               
division's  budget includes  certain "increments"  that would  in                                                               
part  address the  issue of  lost staff  time due  to litigation;                                                               
furthermore,  future  needs  could  be addressed  either  via  an                                                               
amendment  to that  budget or  via the  supplemental budget.   In                                                               
response  to another  question, he  mentioned that  although some                                                               
aspects  of   what  the  division  occasionally   does  could  be                                                               
considered  marketing of  a  sort,  marketing isn't  specifically                                                               
part of the division's mission.   In response to a question about                                                               
acquiring  land from  the federal  government, he  explained that                                                               
the division receives land on  a regular basis, that the division                                                               
requested  more  land  than  it  was  entitled  to,  that  Native                                                               
allotments  and   Native  corporations   get  first   and  second                                                               
priority, that  the process  of conveying  such land  is complex,                                                               
lengthy, and therefore highly scrutinized  and reviewed, and that                                                               
finalizing such conveyances could still take many more years.                                                                   
                                                                                                                                
REPRESENTATIVE GARDNER asked how  an individual could prevent the                                                               
development  of  mineral  resources  on  his/her  privately-owned                                                               
land.                                                                                                                           
                                                                                                                                
MR. MENEFEE  explained that Alaska takes  a split-estate approach                                                               
with regard to  land ownership - for example, one  person can own                                                               
the  mineral  estate, while  someone  else  can own  the  surface                                                               
estate - and  because the mineral estate  takes priority, nothing                                                               
can  be  done to  prevent  access  to  [and development  of]  the                                                               
mineral resources  on such land, though  the surface-estate owner                                                               
must  be properly  compensated.   Furthermore,  because land  has                                                               
been conveyed  via different methodologies, rights  and ownership                                                               
can be challenging for the division to determine.                                                                               
                                                                                                                                
REPRESENTATIVE  GARDNER  expressed   concern  that  the  division                                                               
doesn't  have the  staff necessary  to  process applications  and                                                               
permits in a timely manner.                                                                                                     
                                                                                                                                
1:36:04 PM                                                                                                                    
                                                                                                                                
MR. MENEFEE  reiterated that the  division's budget  does contain                                                               
some  items that  should  the legislature  choose  to fund  them,                                                               
could help with  the application/permit backlog.   In response to                                                               
other questions, he relayed that  the division has two engineers,                                                               
as well as some hydrologists,  who are responsible for monitoring                                                               
dam  safety in  Alaska;  that large  dam  projects are  typically                                                               
assigned  a   coordinator  to  ensure  cooperation   between  the                                                               
numerous  authorizing agencies  involved;  that  the division  is                                                               
responsible for  authorizing the laying  of fiber optic  cable or                                                               
pipelines  under   Alaska's  waters;   that  there   are  several                                                               
different  mining  projects  -  both  large-  and  small-scale  -                                                               
currently occurring  in Southeast  Alaska; that he  would provide                                                               
the committee  with a  list of those  projects and  their current                                                               
status; that  the division has  been in contact with  the Alaskan                                                               
Shellfish  Growers Association  (ASGA)  regarding development  of                                                               
the  shellfish  industry;  and that  with  regard  to  geothermal                                                               
projects,  it is  the temperature  of the  water that  determines                                                               
which  division  would  have  jurisdiction  -  specifically,  the                                                               
Division of  Oil and  Gas has jurisdiction  over projects  with a                                                               
water  temperature   greater  than  120°  Celsius,   whereas  the                                                               
Division  of  Mining,  Land  and   Water  has  jurisdiction  over                                                               
projects with a lower water temperature.                                                                                        
                                                                                                                                
MR.  MENEFEE, in  response to  further questions,  explained that                                                               
under  federal  law,  the  Division of  Mining,  Land  and  Water                                                               
maintains State control over all  coal development in the Alaska,                                                               
and  is   responsible  for  the  associated   leasing,  approval,                                                               
permitting,  reclamation,  bonding,   and  authorizing;  that  in                                                               
essence,   the  division   is  implementing   the  federal   coal                                                               
development  program; that  the  division  addresses leasing  and                                                               
permitting  for   such  projects  but  doesn't   address  royalty                                                               
payments or  any delays of  such; that by statute,  when leasing,                                                               
the division  is required to maximize  a return to the  state and                                                               
meet  fair-market  value;  and   that  although  sometimes  those                                                               
leasing  and permitting  costs can  be reduced  depending on  the                                                               
situation, they can't be eliminated altogether.                                                                                 
                                                                                                                                
CO-CHAIR  SEATON asked  Mr. Menefee  to  provide comparison  data                                                               
between coal leases and mariculture leases.                                                                                     
                                                                                                                                
MR. MENEFEE agreed to do so.                                                                                                    
                                                                                                                                
1:51:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KAWASAKI  asked how  often the  division initiates                                                               
litigation.                                                                                                                     
                                                                                                                                
MR. MENEFEE explained that the  division rarely files lawsuits on                                                               
its own,  and is very  selective about  which ones it  does file;                                                               
generally, the  division is simply  responding to the  actions of                                                               
others.  In  response to a request, he relayed  that the division                                                               
is  very   interested  in  increasing  its   ability  to  process                                                               
applications and permits  in a more timely  and efficient manner,                                                               
and  so  is  interested  in  taking  a  several-pronged  approach                                                               
towards improvement.  For example,  the DNR is putting together a                                                               
task force that  will specifically address the  issue of possible                                                               
efficiencies.                                                                                                                   
                                                                                                                                
MR. MENEFEE,  in response to  questions, explained that  the term                                                               
"active authorizations" as used  in the aforementioned PowerPoint                                                               
presentation  refers  to  all authorizations  that  haven't  been                                                               
closed, and that  some types of authorizations  can be considered                                                               
to  be "active"  for many,  many years,  such as  those involving                                                               
water rights or  contracts to buy land.  In  response to comments                                                               
and  other questions,  he additionally  explained that  temporary                                                               
water use authorizations are generally  addressed by the division                                                               
as quickly  as possible,  oftentimes within  about two  weeks, so                                                               
that   development   isn't   inhibited,   whereas   water   right                                                               
[applications],  in  contrast, are  oftentimes  set  aside for  a                                                               
while, since the  water can still be used even  though the matter                                                               
isn't fully  adjudicated.  Furthermore, water  rights are awarded                                                               
on  a  first-come-first-served basis,  so  if  there are  several                                                               
applications  for  water rights  for  the  same water,  then  the                                                               
division simply determines who sent  in the first application and                                                               
then awards  the water rights to  him/her first.  With  regard to                                                               
the  division's tremendous  backlog, he  indicated that  although                                                               
the division had  recently attempted to address  it, staffing and                                                               
budgetary  shortfalls at  the time  precluded  the division  from                                                               
succeeding.                                                                                                                     
                                                                                                                                
REPRESENTATIVE HERRON  asked why the division's  positions aren't                                                               
being filled.                                                                                                                   
                                                                                                                                
MR.  MENEFEE said  it  used  to be  because  the division  wasn't                                                               
competitive  with  other  employers,  and now  it's  because  the                                                               
division has had to absorb the  cost of merit increases and so no                                                               
longer has sufficient funding for all of its positions.                                                                         
                                                                                                                                
The committee took an at-ease from 2:05 p.m. to 2:08 p.m.                                                                       
                                                                                                                                
^Overview(s):  Alaska Department of Fish & Game                                                                                 
         Overview(s):  Alaska Department of Fish & Game                                                                     
                                                                                                                              
2:08:30 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FEIGE announced  that the final order  of business would                                                               
be the overview of the Alaska Department of Fish & Game.                                                                        
                                                                                                                                
2:08:37 PM                                                                                                                    
                                                                                                                                
CORA CAMPBELL,  Acting Commissioner, Alaska Department  of Fish &                                                               
Game  (ADF&G),  after  introducing   staff,  explained  that  the                                                               
ADF&G's  mission  -  based  closely on  language  in  the  Alaska                                                               
statutes,  Title  16,  and  in  the  Alaska  State  Constitution,                                                               
Article VIII  - is  to protect, maintain,  and improve  the fish,                                                               
game, and aquatic plant resources  of the state, and manage their                                                               
uses and development in the best  interest of the economy and the                                                               
well-being  of  the people  of  the  state, consistent  with  the                                                               
sustained yield principle.   Referring to page 3  of a PowerPoint                                                               
presentation, she noted  that it lists the  department's six core                                                               
services.   Harvest  management  - providing  the opportunity  to                                                               
utilize fish and wildlife resources  - is measured by such things                                                               
as  commercial harvest  numbers  and the  number  of hunting  and                                                               
fishing   licenses   sold.      Stock   assessment   -   ensuring                                                               
sustainability  and  harvestable  surplus of  fish  and  wildlife                                                               
resources   -  involves   measuring   escapement  and   threshold                                                               
harvest/catch  levels,   and  can  involve   conducting  wildlife                                                               
surveys.   Customer service -  providing accurate  and meaningful                                                               
information to  all customers  - includes  producing publications                                                               
and sponsoring  skills programs.  Public  involvement - involving                                                               
the  public  in  management  of fish  and  wildlife  resources  -                                                               
ensures that  Alaskans are involved  with the  regulatory process                                                               
and various boards.   State sovereignty -  protecting the state's                                                               
sovereignty  to manage  fish and  wildlife  resources -  involves                                                               
participating   in   federal    land-management   processes,   in                                                               
Endangered Species  Act and critical habitat  determinations, and                                                               
in the  federal subsistence board processes.   Habitat protection                                                               
- protecting  important fish and  wildlife habitat  during permit                                                               
and project review  - is primarily accomplished  by ensuring that                                                               
developers are in compliance with their habitat permits.                                                                        
                                                                                                                                
ACTING  COMMISSIONER  CAMPBELL,  referring   to  page  4  of  her                                                               
PowerPoint  presentation,  relayed  that  it lists  some  of  the                                                               
various responsibilities of  the commissioner's office, including                                                               
serving  as  a  voting  member   of  the  North  Pacific  Fishery                                                               
Management  Council, thereby  providing Alaskans  a voice  in the                                                               
management of  federal fisheries off  Alaska's shores.   A number                                                               
of the  items listed on  page 4 reflect federal  or international                                                               
treaty  responsibilities  having to  do  with  the management  of                                                               
resources that  cross borders.   Referring to  pages 5-13  of her                                                               
PowerPoint presentation, she relayed  that the ADF&G is organized                                                               
into six  divisions:  the  Division of Commercial  Fisheries; the                                                               
Division of  Sport Fish; the  Division of  Wildlife Conservation;                                                               
the Division  of Subsistence;  the Division  of Habitat;  and the                                                               
Division of  Administrative Services.  The  first three divisions                                                               
listed are considered to be  "management" divisions, the Division                                                               
of  Subsistence   is  considered  to  be   primarily  a  research                                                               
division,  and   the  Division   of  Habitat   addresses  habitat                                                               
protection and  permitting functions.   Furthermore,  in addition                                                               
to the Division of Administrative  Services, the ADF&G also has a                                                               
Boards Support  Section, which provides  support to the  Board of                                                               
Fisheries and  the Board of  Game, and "houses" the  Exxon Valdez                                                               
Oil  Spill Trustee  Council and  the  Commercial Fisheries  Entry                                                               
Commission, she added.                                                                                                          
                                                                                                                                
2:14:25 PM                                                                                                                    
                                                                                                                                
ACTING COMMISSIONER CAMPBELL,  referring to the map on  page 5 of                                                               
her  PowerPoint   presentation,  explained  that  it   shows  the                                                               
location  of the  ADF&G's regional  and area  offices, and  which                                                               
divisions maintain staff in those  offices, but does not show the                                                               
ADF&G's seasonal field camps or  research stations.  The Division                                                               
of Commercial Fisheries is  charged with protecting, maintaining,                                                               
and improving  the fish, shellfish,  and aquatic  plant resources                                                               
of the state, consistent with  the sustained yield principle, for                                                               
the  maximum benefit  of the  economy and  the people  of Alaska;                                                               
conducts stock assessment research  and management for commercial                                                               
fisheries  as  well as  for  some  subsistence fisheries;  is  in                                                               
charge of  permitting aquaculture projects throughout  the state;                                                               
and provides support for the  Board of Fisheries' processes.  The                                                               
Division of Sport  Fish is charged with  protecting and improving                                                               
the state's  recreational fisheries  resources, and  is therefore                                                               
responsible   for  managing   Alaska's   sport  fisheries,   many                                                               
personal-use  fisheries, and  some subsistence  fisheries.   This                                                               
division  enhances  recreational  fishing opportunities  via  the                                                               
production of  hatchery-reared fish, houses within  it an element                                                               
charged   with  protecting   and  improving   public  access   to                                                               
recreational fisheries  resources, and  is primarily  funded with                                                               
federal excise taxes and matching  funds from the sale of fishing                                                               
licenses and access fees.                                                                                                       
                                                                                                                                
ACTING  COMMISSIONER  CAMPBELL  explained that  the  Division  of                                                               
Wildlife Conservation  is charged  with conserving  and enhancing                                                               
Alaska's wildlife and habitats and  providing for a wide range of                                                               
public uses  and benefits, and  thus is responsible  for managing                                                               
wildlife and providing  support and information for  the Board of                                                               
Game processes.   This division educates and  informs hunters via                                                               
specific  programs,   and  manages  wildlife   refuges,  critical                                                               
habitat   areas,  wildlife   sanctuaries,  and   other  specially                                                               
designated areas.   The Division  of Subsistence is  charged with                                                               
scientifically    quantifying,    evaluating,    and    reporting                                                               
information about the customary  and traditional uses of Alaska's                                                               
fish and wildlife resources, and,  again, is primarily a research                                                               
division  that collects  information about  subsistence uses  and                                                               
customary  and  traditional  patterns,  and  then  provides  that                                                               
information to  the department  and the  boards of  fisheries and                                                               
game  in  order  to   support  their  decision-making  processes.                                                               
Furthermore, the Division of Subsistence  assists the Division of                                                               
Habitat in  preparing comments on  development projects  that are                                                               
expected to impact subsistence fish and wildlife use.                                                                           
                                                                                                                                
2:18:18 PM                                                                                                                    
                                                                                                                                
ACTING  COMMISSIONER  CAMPBELL  explained that  the  Division  of                                                               
Habitat -  again, primarily  a permitting  division -  is charged                                                               
with  protecting Alaska's  valuable fish  and wildlife  resources                                                               
and their  habitats as Alaska's  population and  economy continue                                                               
to  expand.    This  division  reviews  applications  and  issues                                                               
permits for activities taking place  in anadromous water bodies -                                                               
fish-bearing  waters.    For example,  the  Division  of  Habitat                                                               
reviews   proposed   timber-harvest  activity,   conducts   field                                                               
inspections,  and  reviews  development  projects  authorized  by                                                               
other   agencies  to   ensure  compliance.     The   Division  of                                                               
Administrative  Services   is  charged  with   providing  routine                                                               
administrative  services  for  the department,  and  coordinating                                                               
development of  the annual operating  and capital budgets.   This                                                               
division also administers the  ADF&G's licensing program, grants,                                                               
contracts,  reimbursable services  agreements  (RSAs) with  other                                                               
state  agencies, and  provides overall  logistical support.   The                                                               
Board Support  Section is charged  with ensuring that  the public                                                               
process  for  the state's  fish  and  wildlife regulatory  system                                                               
operates efficiently and effectively.   This section, in addition                                                               
to providing support  to the Board of Fisheries and  the Board of                                                               
Game, also provides support to  82 local advisory committees that                                                               
provide advice to the aforementioned boards.                                                                                    
                                                                                                                                
ACTING  COMMISSIONER  CAMPBELL  explained   that  the  charts  on                                                               
page 14 of  her PowerPoint presentation illustrate  the number of                                                               
employees  working within  each  division/section; currently,  of                                                               
the 1,744  total positions,  924 are  fulltime positions  and the                                                               
rest are seasonal  positions.  These charts  also illustrate that                                                               
the majority  of the ADF&G's employees  work in one of  the three                                                               
management divisions - the Division  of Commercial Fisheries, the                                                               
Division   of  Sport   Fish,  and   the   Division  of   Wildlife                                                               
Conservation.   She then relayed that  the two charts on  page 15                                                               
of  her PowerPoint  presentation  illustrate  the ADF&G's  fiscal                                                               
year 2012  (FY 12) budget; the  chart on the left  is broken down                                                               
by division  - with  the bulk  of the budget  being spent  by the                                                               
aforementioned three management divisions -  and the chart on the                                                               
right is  broken down  by funding  source, with  the bulk  of the                                                               
funding coming  from the  general fund  (GF), federal  funds, and                                                               
revenues from license sales.                                                                                                    
                                                                                                                                
2:22:28 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FEIGE asked  what the ADF&G would be  doing to alleviate                                                               
friction between  commercial fisheries users and  sport fisheries                                                               
users.                                                                                                                          
                                                                                                                                
ACTING COMMISSIONER  CAMPBELL explained that some  internal steps                                                               
have  been  taken  to  ensure  that  the  various  divisions  are                                                               
cooperating,  but acknowledged  that  more could  be  done.   For                                                               
example,  for a  variety  of reasons,  subsistence fisheries  and                                                               
personal use fisheries tend to  be managed by either the Division                                                               
of Commercial  Fisheries or  the Division of  Sport Fish,  and so                                                               
the  ADF&G is  going  to be  reviewing  particular activities  in                                                               
order to ensure that their division assignment is sensible.                                                                     
                                                                                                                                
CO-CHAIR SEATON raised the issue of over-escapement.                                                                            
                                                                                                                                
ACTING  COMMISSIONER CAMPBELL  acknowledged that  over-escapement                                                               
represents  lost  economic  opportunities   for  the  state,  and                                                               
assured the  committee that she  would be researching  that issue                                                               
further  and attempting  to find  solutions to  the problem.   In                                                               
response  to other  questions, she  agreed to  also research  the                                                               
issues  of  federal  funding  for  outdoor  firearm  ranges,  and                                                               
personal-use fisheries abuses and crimes.                                                                                       
                                                                                                                                
2:30:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MUNOZ  asked whether the ADF&G  has researched the                                                               
issue  of designating  the  Taku River  a  critical habitat,  and                                                               
whether such  designation could  be crafted so  as not  to impede                                                               
property owners from accessing their land.                                                                                      
                                                                                                                                
ACTING COMMISSIONER  CAMPBELL indicated  that she  has encouraged                                                               
the stakeholders along the Taku  River to get together and decide                                                               
what it  is that they wish  to accomplish in terms  of protecting                                                               
the  river, thereby  making it  easier for  the ADF&G  to provide                                                               
assistance;  currently,  though,   such  clarification  from  the                                                               
stakeholders has not been forthcoming.                                                                                          
                                                                                                                                
ACTING   COMMISSIONER  CAMPBELL,   in   response  to   questions,                                                               
indicated support  for the ADF&G's commitment  to sustainability,                                                               
mentioned  that she  would be  attempting to  take an  innovative                                                               
approach to  solving the state's resource  management quandaries,                                                               
and opined that  the ADF&G's highest priority  should be resource                                                               
sustainability,  citing the  salmon fishery  as an  example of  a                                                               
resource  that the  people of  Alaska rely  on.   In response  to                                                               
comments  and   questions  about   enforcement  of   the  state's                                                               
fisheries  laws, she  explained that  although the  ADF&G doesn't                                                               
have a role in how the  Department of Public Safety (DPS) expends                                                               
its enforcement  resources, the ADF&G does  share its information                                                               
with the DPS.                                                                                                                   
                                                                                                                                
REPRESENTATIVE HERRON expressed  his hope that the  ADF&G and the                                                               
DPS  would  begin  working  more   closely  with  each  other  on                                                               
enforcement issues.                                                                                                             
                                                                                                                                
REPRESENTATIVE  P. WILSON  asked for  more information  regarding                                                               
the issue of staff recruitment, retention, and training.                                                                        
                                                                                                                                
ACTING COMMISSIONER  CAMPBELL said that although  recruitment and                                                               
retention continues to  be a problem, the ADF&G  has instituted a                                                               
number  of  internal  programs  to  try  to  encourage  workforce                                                               
development and  recruit new biologists, and  the ADF&G continues                                                               
to  be focused  on mentoring  and transferring  knowledge to  new                                                               
employees.   In response to  further comments and  questions, she                                                               
assured the committee that she has  been and would continue to be                                                               
taking steps to address staffing  and salary issues; acknowledged                                                               
that a lack  of accurate information about  a particular resource                                                               
can result  in missed economic opportunities;  but cautioned that                                                               
the  cost  of  obtaining  accurate information  must  be  weighed                                                               
against  the  cost of  attempting  to  manage Alaska's  resources                                                               
without sufficient  data.  In  response to another  question, she                                                               
acknowledged  that expanding  sea otters  populations have  had a                                                               
significant impact  on Alaska's shellfish resource,  and said she                                                               
has  been and  would  continue  to be  working  with the  federal                                                               
government, which manages sea otter populations, on that issue.                                                                 
                                                                                                                                
ACTING  COMMISSIONER   CAMPBELL,  in  response  to   a  question,                                                               
clarified  that  the  decisions  regarding  opening  and  closing                                                               
subsistence hunts  and subsistence  fisheries aren't made  by the                                                               
Division of  Subsistence, which,  again, is primarily  a research                                                               
division,  but  are instead  made  by  the Division  of  Wildlife                                                               
Conservation   and,  with   few  exceptions,   the  Division   of                                                               
Commercial  Fisheries,  respectively,   and  that  the  decisions                                                               
regarding which uses are customary  and traditional and whether a                                                               
reasonable opportunity  for subsistence [hunting and  fishing] is                                                               
being provided  are made by  the Board of  Game and the  Board of                                                               
Fisheries, respectively.                                                                                                        
                                                                                                                                
2:51:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DICK noted  that  in years  past,  people in  his                                                               
district didn't have much confidence  in those enforcing Alaska's                                                               
fish  and game  laws  because the  officers  took an  adversarial                                                               
approach towards  the people,  though he has  since seen  a shift                                                               
for the better.                                                                                                                 
                                                                                                                                
CO-CHAIR SEATON asked that department  personnel be reminded that                                                               
they are  merely supposed to  present the  Board of Game  and the                                                               
Board  of Fisheries  with balanced  information, not  promote the                                                               
department's agenda.                                                                                                            
                                                                                                                                
ACTING COMMISSIONER CAMPBELL assured members that information                                                                   
being presented to those boards by department personnel is                                                                      
reviewed beforehand to ensure it is unbiased.                                                                                   
                                                                                                                                
2:56:39 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Resources Standing Committee meeting was adjourned at 2:57 p.m.                                                                 

Document Name Date/Time Subjects
DNR Div. of Mining Land & Water Overview.pdf HRES 1/26/2011 1:00:00 PM
DNR Div. of Mining Land & Water Text.doc HRES 1/26/2011 1:00:00 PM
ADF&G Commiss. Office Overview.pdf HRES 1/26/2011 1:00:00 PM