Legislature(2017 - 2018)BARNES 124

02/08/2017 01:00 PM House RESOURCES

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Audio Topic
01:50:29 PM Start
01:50:56 PM Overview: Alaska Oil and Gas Conservation Commission
02:27:44 PM HB40
02:58:24 PM HB111
07:02:40 PM HJR5
09:12:00 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to 06:00 pm --
-- Delayed to 20 Minutes Following Session --
+ Overview: AK Oil & Gas Conservation Commission TELECONFERENCED
-- Testimony <Invitation Only> --
Heard & Held
-- Testimony <Invitation Only> --
Heard & Held
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
Moved CSHJR 5(AET) Out of Committee
**Streamed live on AKL.tv**
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE RESOURCES STANDING COMMITTEE                                                                             
                        February 8, 2017                                                                                        
                           1:50 p.m.                                                                                            
MEMBERS PRESENT                                                                                                               
Representative Andy Josephson, Co-Chair                                                                                         
Representative Geran Tarr, Co-Chair                                                                                             
Representative Harriet Drummond                                                                                                 
Representative Justin Parish                                                                                                    
Representative Chris Birch                                                                                                      
Representative DeLena Johnson                                                                                                   
Representative George Rauscher                                                                                                  
Representative David Talerico                                                                                                   
MEMBERS ABSENT                                                                                                                
Representative Dean Westlake, Vice Chair                                                                                        
Representative Mike Chenault (alternate)                                                                                        
Representative Chris Tuck (alternate)                                                                                           
COMMITTEE CALENDAR                                                                                                            
OVERVIEW:  ALASKA OIL AND GAS CONSERVATION COMMISSION                                                                           
     - HEARD                                                                                                                    
HOUSE BILL NO. 40                                                                                                               
"An Act  prohibiting and providing  penalties and  civil remedies                                                               
for  trapping  within  200 feet  of  certain  public  facilities,                                                               
areas, and trails; and providing for an effective date."                                                                        
     - HEARD & HELD                                                                                                             
HOUSE BILL NO. 111                                                                                                              
"An  Act  relating  to  the  oil  and  gas  production  tax,  tax                                                               
payments,  and  credits;  relating   to  interest  applicable  to                                                               
delinquent  oil and  gas  production tax;  and  providing for  an                                                               
effective date."                                                                                                                
     - HEARD & HELD                                                                                                             
HOUSE JOINT RESOLUTION NO. 5                                                                                                    
Urging the  United States  Congress to  pass legislation  to open                                                               
the coastal plain  of the Arctic National Wildlife  Refuge to oil                                                               
and gas development;  urging the United States  Department of the                                                               
Interior to  recognize the private  property rights of  owners of                                                               
land  in and  adjacent to  the Arctic  National Wildlife  Refuge;                                                               
relating  to oil  and gas  exploration, development,  production,                                                               
and royalties;  and relating to renewable  and alternative energy                                                               
     - MOVED CSHJR 5(AET) OUT OF COMMITTEE                                                                                      
PREVIOUS COMMITTEE ACTION                                                                                                     
BILL: HB  40                                                                                                                  
SHORT TITLE: TRAPPING NEAR PUBLIC TRAILS                                                                                        
SPONSOR(s): REPRESENTATIVE(s) JOSEPHSON                                                                                         
01/18/17       (H)       PREFILE RELEASED 1/13/17                                                                               


01/18/17 (H) RES, FIN 02/06/17 (H) RES AT 1:00 PM BARNES 124 02/06/17 (H) Heard & Held 02/06/17 (H) MINUTE(RES) 02/08/17 (H) RES AT 1:00 PM BARNES 124 BILL: HJR 5 SHORT TITLE: ENDORSING ANWR LEASING; RELATED ISSUES SPONSOR(s): WESTLAKE


01/18/17 (H) RES


01/20/17 (H) BILL REPRINTED 1/20/17

01/24/17 (H) AET AT 11:30 AM BARNES 124

01/24/17 (H) Heard & Held

01/24/17 (H) MINUTE(AET)

01/26/17 (H) AET AT 11:30 AM BARNES 124

01/26/17 (H) Moved CSHJR 5(AET) Out of Committee

01/26/17 (H) MINUTE(AET)

01/27/17 (H) AET RPT CS(AET) 4DP


01/27/17 (H) RES AT 1:00 PM BARNES 124

01/27/17 (H) Heard & Held

01/27/17 (H) MINUTE(RES) 02/08/17 (H) RES AT 1:00 PM BARNES 124 BILL: HB 111 SHORT TITLE: OIL & GAS PRODUCTION TAX;PAYMENTS;CREDITS SPONSOR(s): RESOURCES 02/08/17 (H) READ THE FIRST TIME - REFERRALS 02/08/17 (H) RES, FIN 02/08/17 (H) TALERICO OBJECTED TO INTRODUCTION 02/08/17 (H) INTRODUCTION RULED IN ORDER 02/08/17 (H) SUSTAINED RULING OF CHAIR Y23 N15 E2 02/08/17 (H) RES AT 1:00 PM BARNES 124 WITNESS REGISTER CATHY FOERSTER, Commissioner/Chair Alaska Oil and Gas Conservation Commission Department of Administration Anchorage, Alaska POSITION STATEMENT: Provided a PowerPoint presentation entitled, "Alaska Oil and Gas Conservation Commission," and answered questions. JIM KOWALSKY, Spokesperson Alaskans for Wildlife Fairbanks, Alaska POSITION STATEMENT: Testified in support of HB 40. KENNY BARBER Palmer, Alaska POSITION STATEMENT: His testimony in opposition to HB 40 was read by Patti Barber. PATTI BARBER Palmer, Alaska POSITION STATEMENT: Testified in opposition to HB 40. ALYSON PYTTE Anchorage, Alaska POSITION STATEMENT: Testified in support of HB 40. JONATHAN ZEPPA, Spokesperson Alaska Frontier Trappers Association, Inc. Palmer, Alaska POSITION STATEMENT: Testified in opposition to HB 40. MARK LUTRELL Seward, Alaska POSITION STATEMENT: Testified in support of HB 40. ROBERT MATHEWS Delta Sportsmans Association Inc. Delta Junction, Alaska POSITION STATEMENT: Testified in opposition to HB 40. JAMES SQUYRES Deltana, Alaska POSITION STATEMENT: Stated his support for portions of HB 40 and his opposition to portions of HB 40. DAN DUNAWAY Dillingham, Alaska POSITION STATEMENT: Testified in opposition to HB 40. DAN BOYD Dillingham, Alaska POSITION STATEMENT: Testified in support of HB 40. ASHLEY STRAUCH, Staff Representative Scott Kawasaki Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Speaking on her own behalf, testified in support of HB 40. LINDA DEFOLIART Fairbanks, Alaska POSITION STATEMENT: Testified in support of HB 40. KERI PETERSON Fairbanks, Alaska POSITION STATEMENT: Testified during the hearing of HB 40. PAMELA GOODE Deltana, Alaska POSITION STATEMENT: Spoke on a topic not on the committee calendar, and testified in opposition to HB 40. RICHARD PERSON Chugiak, Alaska POSITION STATEMENT: Testified in opposition to HB 40. TOM LESSARD Cooper Landing, Alaska POSITION STATEMENT: Testified in opposition to HB 40. LYNN KEOGH Anchorage, Alaska POSITION STATEMENT: Testified in opposition to HB 40. AL BARRETTE Fairbanks, Alaska POSITION STATEMENT: Testified in opposition to HB 40. MIKE SATRE Juneau, Alaska POSITION STATEMENT: Testified in support of HJR 5. FRANK BERGSTROM Juneau, Alaska POSITION STATEMENT: Testified in support of HJR 5. JULIA YORK Fairbanks, Alaska POSITION STATEMENT: Testified in opposition to HJR 5. STEVEN GREENLAW Fairbanks, Alaska POSITION STATEMENT: Testified in opposition to HJR 5. RICHARD GLENN, Vice President Land and Natural Resources Arctic Slope Regional Corporation Barrow/Utqiaguik, Alaska POSITION STATEMENT: Testified in support of HJR 5. KARA MORIARTY, President/CEO Alaska Oil and Gas Association Anchorage, Alaska POSITION STATEMENT: Testified in support of HJR 5. ALEXANDER GEDSCHINSKY Fairbanks, Alaska POSITION STATEMENT: Testified in opposition to HJR 5. PRINCESS JOHNSON Fairbanks, Alaska POSITION STATEMENT: Testified in opposition to HJR 5. ANNE SENECA, Spokesperson Consumer Energy Alliance Alaska Anchorage, Alaska POSITION STATEMENT: Testified during the hearing of HJR 5. DONETTA TRITT Arctic Village, Alaska POSITION STATEMENT: Testified in opposition to HJR 5. RON YARNELL, Owner All About Adventure Fairbanks, Alaska POSITION STATEMENT: Testified in opposition to HJR 5. NARIEEZH PETER Fairbanks, Alaska POSITION STATEMENT: Testified in opposition to HJR 5. MATT GILBERT Arctic Village, Alaska POSITION STATEMENT: Testified in opposition to HJR 5. ENEI PETER Fairbanks, Alaska POSITION STATEMENT: Testified in opposition to HJR 5. LINDA DEFOLIART Fairbanks, Alaska POSITION STATEMENT: Testified in opposition to HJR 5. JUSTINA BEAGNYAM Fairbanks, Alaska POSITION STATEMENT: Testified in opposition to HJR 5. JENNA JONAS Fairbanks, Alaska POSITION STATEMENT: Testified in opposition to HJR 5. CHRISTINA EDWIN Anchorage, Alaska POSITION STATEMENT: Testified in opposition to HJR 5. KEITH SILVER Anchorage, Alaska POSITION STATEMENT: Testified in support of HJR 5. MISTY NICKOLI Fairbanks, Alaska POSITION STATEMENT: Testified in opposition to HJR 5. KERI PETERSON Fairbanks, Alaska POSITION STATEMENT: Testified in opposition to HJR 5. ODIN MILLER Fairbanks, Alaska POSITION STATEMENT: Testified during the hearing of HJR 5. SAM ALEXANDER Fairbanks, Alaska POSITION STATEMENT: Testified in opposition to HJR 5. JESSICA GIRARD Fairbanks, Alaska POSITION STATEMENT: Testified in opposition to HJR 5. MICHELLE TOOHEY Anchorage, Alaska POSITION STATEMENT: Testified in support of HJR 5. MELINDA CHASE, Spokesperson Fairbanks Climate Coalition Fairbanks, Alaska POSITION STATEMENT: Testified in opposition to HJR 5. SHANNON BUSBY Ester, Alaska POSITION STATEMENT: Testified in opposition to HJR 5. BARBARA HUFF TUCKESS, Director Legislative Affairs Teamsters Local 959 Juneau, Alaska POSITION STATEMENT: Testified in support of CSHJR 5. KIM HEACOX Gustavus, Alaska POSITION STATEMENT: Testified in opposition to HJR 5. JEANINE ST. JOHN, Spokesperson Lynden Transport Juneau, Alaska POSITION STATEMENT: Testified in support of HJR 5. SARAH JAMES Arctic Village POSITION STATEMENT: Testified in opposition to HJR 5. ELLA EDE Anchorage, Alaska POSITION STATEMENT: Testified in support of HJR 5. MICHELLE EGAN, Spokesperson Alyeska Pipeline Service Company Anchorage, Alaska POSITION STATEMENT: Testified in support of HJR 5. CARL PORTMAN, Deputy Director Resource Development Council Anchorage, Alaska POSITION STATEMENT: Testified in support of HJR 5. CAROLYN KREMERS Fairbanks, Alaska POSITION STATEMENT: Testified in opposition to HJR 5. JAMES SQUYRES Deltana, Alaska POSITION STATEMENT: Testified in support of HJR 5. JOHN HYDE Juneau, Alaska POSITION STATEMENT: Testified in opposition to HJR 5. KRISTINA OLESKA (indisc.) Sutton, Alaska POSITION STATEMENT: Testified in opposition to HJR 5. ACTION NARRATIVE 1:50:29 PM CO-CHAIR ANDY JOSEPHSON called the House Resources Standing Committee meeting to order at 1:50 p.m. Representatives Josephson, Rauscher, Drummond, Johnson, Parish, and Talerico were present at the call to order. Representatives Tarr and Birch arrived as the meeting was in progress. ^OVERVIEW: ALASKA OIL AND GAS CONSERVATION COMMISSION OVERVIEW: ALASKA OIL AND GAS CONSERVATION COMMISSION 1:50:56 PM CO-CHAIR JOSEPHSON announced that the first order of business would be a presentation by the Alaska Oil and Gas Conservation Commission (AOGCC). 1:52:16 PM CATHY FOERSTER, Commissioner/Chair, Alaska Oil and Gas Conservation Commission, Department of Administration, provided a PowerPoint presentation entitled, "Alaska Oil and Gas Conservation Commission (AOGCC)." Ms. Foerster informed the committee AOGCC is an independent quasi-judicial body that holds hearings and makes rulings on well spacing and other exceptions, pool rules, gas offtake allowables, drilling wells, and wellwork. The commission has three commissioners with six-year terms that are staggered every two years, and she urged the committee to advance the appointment of Mr. Hollis French to the public seat and the reappointment of Mr. Dan Seamount to the petroleum geologist seat. The commission is staffed by two geologists, six engineers, nine field inspectors, and various administrative support positions, and has a budget of $7.8 million. She asked the committee to note that none of AOGCC's funding comes from general funds, but is assessed to the regulated industry; in addition, a cut to AOGCC's budget will slow permitting and inspections which in turn, will slow the industry and its production of revenue (slide 1). 1:57:17 PM MS. FOERSTER stated AOGCC is charged with preventing waste and encouraging greater recovery of hydrocarbon and geothermal resources, protecting fresh groundwater sources during oil productions operations, correlative rights, and human health and safety during wellwork operations. The duties and responsibilities of AOGCC differ from those of the Department of Natural Resources (DNR) in that DNR ensures the state's resources are developed to provide maximum benefit to Alaskans, and AOGCC's role is to regulate the industry throughout the state. As an independent agency, AOGCC can serve to adjudicate between DNR and industry. In 2016, AOGCC's activities were as follows: providing adequate regulatory oversight for the exploration and development activities in Cook Inlet, on the North Slope, and in remote areas of the state; updating and modifying regulations in order to stay current with technology, and new information; working with the Bureau of Land Management (BLM), U.S. Department of the Interior, on the legacy well cleanup; working with small operator bankruptcy and lease relinquishments to avoid adding orphan wells to the existing inventory (slides 2 and 3). 2:00:52 PM CO-CHAIR JOSEPHSON asked how an orphan well differs from a legacy well. MS. FOERSTER explained orphan wells have not been properly plugged and abandoned, and no one is responsible; however, legacy wells were drilled by the federal government, which must take responsibility. She returned to the presentation and advised in spite of lower oil prices, drilling and wellwork activity continued at a steady pace in 2016; BP and ConocoPhillips Alaska, Inc. continued to drill and workover wells at Prudhoe Bay, Kuparuk and Colville, and Hilcorp continued fixing broken wells at Milne Point other fields. Further, in 2017, AOGCC expects industry activity to continue at the same pace, with Blue Crest development at Cosmopolitan and AIX working in the Kenai Loop field. Armstrong will follow Repsol on the North Slope, there will be one shale exploratory well, and Cook Inlet Energy and Furie will each drill an exploratory well in Cook Inlet. Caelus will not have wellwork in Smith Bay (slide 4). Ms. Foerster said AOGCC constantly evaluates its regulations, and proposed changes are to be heard in the near future. Proposed changes are to accomplish the following: stay current with technology and operating practices; fill a gap; clarify something that was being misinterpreted. 2:03:44 PM MS. FOERSTER informed the committee AOGCC has been updating its hydraulic fracturing regulations to relate to current technology and political climate; the regulations were reviewed by the State Review of Oil and Natural Gas Environmental Regulations Inc. (STRONGER), which is a nationally recognized consortium, and received a favorable outcome. In fact, it is considered that Alaska has the most comprehensive and stringent regulations in the country for hydraulic fracturing, and AOGCC continues to analyze its regulations in response to public requests. Also in 2017, AOGCC will work with the Department of Environmental Conservation (DEC) to transfer the regulatory responsibility for blowout contingency planning to AOGCC, although DEC will retain control of the portion of the contingency plan related to spill cleanup (slide 5). Ms. Foerster explained improperly abandoned wells are more of a problem in the Lower 48, where there has been oil and gas activity for over a century, with the exception of the travesty wells in Northwest Alaska that were drilled and operated by the federal government. In 2014, $50 million was allocated for cleanup and BLM began work on two wells, but neither the cleanup plan nor state regulations were followed, thus the wells are not plugged and are in worse disrepair. This year AOGCC negotiated a memorandum of understanding (MOU) with BLM to ensure BLM will follow all of Alaska's applicable laws (slide 6 and 7). 2:08:53 PM MS. FOERSTER, in response to Representative Drummond, will identify the oil rigs illustrated in the presentation. Turning to orphan wells, she said as oil fields mature, and new and smaller companies come to work in the state, the threat of orphan wells increases. In 2016, two operating companies went bankrupt; if their assets are not purchased by another company, the landowner, frequently the state, is responsible for plugging the well(s). CO-CHAIR JOSEPHSON questioned whether the state has a bond system for wells. 2:10:41 PM MS. FOERSTER said the present system collects two $100,000 plugging and abandonment bonds to cover all of the wells one company operates. In addition, privately-held companies can be less financially secure than are ConocoPhillips Alaska, Inc., or BP. In further response to Co-Chair Josephson, she said all of the companies are treated the same, "and we need to change that." Ms. Foerster further explained that there are a few orphan wells in the state, all of which were drilled by companies that no longer exist. 2:12:48 PM REPRESENTATIVE PARISH asked for the approximate cost of plugging one well on the North Slope or in Cook Inlet. MS. FOERSTER said there is no one answer; the cost depends on its location, and estimates range from $100,000 to $20,000,000. REPRESENTATIVE DRUMMOND suggested the state should require insurance to support the bonds. MS. FOERSTER agreed a different type of coverage is needed for smaller companies. In further response to Representative Drummond, she opined further regulation will not require legislation; the plan is to advise the administration and the industry of the needed changes, gather testimony from the affected parties through hearings, and provide sufficient notice of AOGCC's final decision. Returning attention to the presentation, she noted also in 2016, two companies relinquished leases that had wells; DNR regulations related to relinquishment conflict with those of AOGCC, thus AOGCC seeks to work with DNR to avoid this situation. In order to protect the state from a huge orphan well liability, AOGCC will accomplish the following: collect the bond from failing companies; work with DNR to eliminate the aforementioned gaps in lease relinquishment procedures; change the state's bonding structure; work with operators to prudently identify and plug wells that have no future utility (slide 7). 2:19:19 PM MS. FOERSTER reviewed the role of AOGCC in gas offtake and advised all of the gas from Prudhoe Bay is used to get more oil out of the ground; however, at Point Thomson, gas production will leave a significant amount of condensate unrecoverable. In addition, producing gas strands oil, but when oil is produced and gas is reinjected, the gas remains recoverable at a later date. Therefore, AOGCC is disinclined to allow gas offtake that would cause oil waste; however, AOGCC granted gas offtake allowables to Prudhoe Bay and Point Thomson for a "2025ish" timeframe based on a window of opportunity for selling gas in the mid-20s, and reservoir studies that have indicated the pool of oil at risk of being lost is smaller than the value of the gas. CO-CHAIR JOSEPHSON questioned whether AOGCC has the authority to rescind its gas offtake allowables. MS. FOERSTER said if data indicated there would be waste of the resource, AOGCC would make any changes necessary. In response to Representative Talerico, she said Furie and Cook Inlet Energy may each drill one well in Cook Inlet. REPRESENTATIVE PARISH surmised the current situation is that the state would have $200,000 to plug all of BP's wells should it go out of business in the distant future. MS. FOERSTER said AOGCC is working on a new process designed "to ensure that that is not a problem." REPRESENTATIVE BIRCH appreciated the work done by AOGCC. REPRESENTATIVE TALERICO inquired as to whether regulations need to be updated for both technological and mechanical innovations. MS. FOERSTER said yes. Sometimes regulations become out-of-date or information is received from the Interstate Oil and Gas Compact Commission indicating a change is warranted. HB 40-TRAPPING NEAR PUBLIC TRAILS 2:27:44 PM CO-CHAIR JOSEPHSON announced that the next order of business would be HOUSE BILL NO. 40, "An Act prohibiting and providing penalties and civil remedies for trapping within 200 feet of certain public facilities, areas, and trails; and providing for an effective date." CO-CHAIR JOSEPHSON opened public testimony on HB 40. 2:28:04 PM JIM KOWALSKY said he was speaking for Alaskans for Wildlife which is a nonprofit organization promoting respect for wildlife. He expressed support for HB 40 as presented, and opined this is not a Board of Game (BOG), Alaska Department of Fish & Game (ADF&G), matter or an allocation matter, but a matter of public safety and public health; in fact, BOG has refused to address this issue, thus Alaskans for Wildlife has turned to the legislative process. The topic may be more germane to urban areas where conflict between trail users is frequent. Mr. Kowalsky expressed his organization's strong support for the bill, including identifying traps with tags in order to aid the enforcement of regulations. 2:30:38 PM PATTI BARBER, on behalf of Kenny Barber, read the following testimony: I am opposed to HB 40, the reason is because trap tags are another way to create problems for trappers in the field. Trap tags have been removed by people that don't agree with the activity and place them in another location to harm the trapper. The fines and imprisonment portion of this bill are too high for the trapper and no mention of consequences for dogs off leash. Where is the justice? As a trapper for over 55 years, 10 years as a child in New York and 45 years in Alaska, I have never caught a domesticated animal. My trap line was on one of the highest recreational use areas in the state, the Knik River. Trapping is a legal activity. Dogs off leash are illegal in many areas of the state such as state parks and the Matanuska-Susitna (Mat-Su) Borough. Dogs off leash do not, and not under voice control are left to run free and have been known to run in packs and kill other wildlife such as moose and caribou calves, rabbits, birds, and other small animals. Dog bites to humans occur more often than a dog being caught in a trap. Currently, there have been only five dogs caught in traps in the Mat-Su Borough in 2016. In the state of Alaska epidemiology reports there have been 292 total dog bite related injuries or hospitalizations in 11- year study period. Many were children aged zero to four years as the highest rate. A hundred and thirty- three of these injuries were within the Anchorage and Mat-Su boroughs, the highest injury count in the state. When we came to Alaska in 1970 I worked for Valley Memory Garden Cemetery, while there I helped bury two children that were killed by dogs. In years past there have been 1,176 dogs euthanized in one year at the Mat-Su animal control center. I am unaware of a child or adult being maimed or caught in a trap. During testimony on Monday there was mention that the board of game was unwilling to address the problem of dogs and trapping. I was appointed by board of game chairman, (indisc.) to sit on a committee to address this problem. The committee consisted of fish and game advisory committee members, Anchorage, Mat-Su, and Soldotna, one state trapper organization member, three anti-trapping members, and one member of the board of game was picked to chair the committee. We met for two years on this issue alone. We came up with some solutions such as signage at trailheads, educating the public that trapping occurs from November to April, and that dogs should be on a leash during that timeframe. The 330 and 220 conibear traps could only be used underwater or ice within 100 feet of a maintained trail. The Mat-Su Borough is working on an ordinance to restrict trapping on portions of the Crevasse Moraine Trail and on school property. I sit on the parks and recreation advisory committee. As a committee we have discussed the ordinance at length, and I am not speaking on this for that committee. 2:35:16 PM PATTI BARBER, speaking on her own behalf, said she is opposed to HB 40 because trapping is legal and dogs off leash are illegal in many portions of the state. Signage alerting users to the presence of traps from November to April is appropriate. Dogs are attracted to bait and in some areas of the state underwater trapping for beaver, mink, or muskrat occurs earlier in the year and is not a threat to dogs. Instead of requiring trap tags, she suggested creating a dog park so dogs can be off leash during trapping season; dogs would be safe from traps in a fenced area. She noted that many dogs and cats are loose. Dog owners use trails all of the time, and also use trappers' personal trails. Ms. Barber said trappers have to pay fines and suffer imprisonment for violations, but dog owners do not, and opined all illegal parties should pay at the same rate. REPRESENTATIVE PARISH questioned whether Mr. or Ms. Barber would support a bill targeted at graveled and paved trails. MR. BARBER said yes to paved trails, but questioned the definition of a maintained trail, of which there are few. He said most trappers are known to ADF&G and it has the right to ticket a trapper. There is no problem with paved trails or bike trails in Anchorage. REPRESENTATIVE BIRCH observed some have expressed a preference for a local government control option in regard to trapping, and asked how a local government is empowered "to manage trapping." MR. BARBER said he cannot speak for "that" committee, but Alaska Safe Trails [proposed restrictions] to school property and the Crevasse Moraine Trail; however, there were "amendments to the bill" [document not provided] because the bill as written "would make you an outlaw to go to a school with a trap in your truck ...." Another amendment was to limit the restrictions on the Crevasse Moraine Trail, because the definition of "any maintained trail in the borough" is too vague. REPRESENTATIVE RAUSCHER asked where to find statistics on dogs and people caught in traps. MR. BARBER said he did not know. 2:43:42 PM ALYSON PYTTE said she is a dog owner and a daily user of public trails. She thanked the sponsor of the bill, and trappers who trap at a safe distance from public trails. Like others, she lets her dog off leash and is concerned about her dogs getting caught in a trap, and avoids areas where incidents have occurred. Ms. Pytte spoke of previous legislation that addressed the wellbeing of pets in custody disputes, which supports the modern view that pets are part of one's family. She opined there is broad public support for the restrictions written in HB 40, and suggested a similar ballot initiative would pass if there is continued inaction by the legislature. The bill proposes minimal burdens on trappers and helps by providing guidance on the placement of traps. She urged the committee to improve the bill by making the following changes: include public trails in state game refuges, on state land, municipal land, and federal refuges and parks; require traps to be tagged; increase the distance to 500 feet. 2:47:09 PM JONATHAN ZEPPA, representing the Alaska Frontier Trappers Association, Inc., said his organization is a statewide organization with a majority of members who reside within the Mat-Su valley. Alaska Frontier Trappers Association, Inc., recognizes change is needed to minimize conflict between trapping and other recreational users with dogs in or adjacent to semi-urban areas. However, the change must come through local authorities, as the conflict is restricted to population centers. Although boroughs differ throughout the state, the Mat-Su Borough has drafted legislation for school campuses and the Crevasse Moraine Trail system which has not been presented to the assembly, and his organization has proposed working with the borough fish and wildlife commission to develop realistic requirements and a mapped urban trapping management area proposal to submit to BOG. He opined BOG will appreciate recommendations from a trappers' association in this regard. Turning to risk, he said in the Mat-Su valley almost all dogs caught are off leash in violation of leash laws and he questioned the lack of risk statistics in support of the bill. In fact, the risk to dogs and people from other dogs is much greater. Mr. Zeppa said the risk to people from traps is so low statistics are not maintained by health organizations in Alaska; however, 3.9 people per 100,000 have been hospitalized after suffering dog bites in Alaska during a 10-year period. He opined evidence supports trapping is not dangerous. Regarding enforcement, he said there are thousands of miles of Revised Statute 2477 (RS 2477) trails maintained by the state, that are not surveyed, and questioned how to measure 200 feet; further, trails change, therefore law enforcement is impossible without surveys and maps. He summarized, saying the issue is a local matter and to prohibit all trapping within 200 feet is unfair and prejudiced against trapping. REPRESENTATIVE PARISH requested a copy of the pertinent draft regulations from the Mat-Su Borough. 2:53:20 PM MARK LUTRELL expressed support for HB 40 which is common-sense protection of family members without significant restrictions on trappers. The entire community including trappers and non- trappers, families, residents, visitors, tourists, and companion animals will benefit from added safety during activities without the threat and fear of traps. He related a personal experience of finding a dog caught in a trap on a trail, and said dogs should be allowed to romp and run. Mr. Lutrell said the bill is not anti-trapping, but is a "very minor inconvenience," and good for the trapping community's reputation. He expressed his hope the committee would support the bill. 2:56:10 PM ROBERT MATHEWS, speaking on behalf of the Delta Sportsmans Association Inc., informed the committee the association does not support the bill, as the bill appears to relate to a local issue that needs to be addressed through the borough and city assemblies. The issue has been studied by BOG and brought to its attention, but there was no consensus in regard to action on this issue. He restated the Delta Sportsmans Association has about 250 members who do not support bill. CO-CHAIR JOSEPHSON understood there is a community of trappers in Delta Junction that may support a compromise version of the bill. MR. MATHEWS said no, the trappers he spoke with do not support the 200-feet restriction, tagging, the measurement of a meandering trail, or the definition of a trail. 2:58:04 PM CO-CHAIR JOSEPHSON announced HB 40 was held over with public testimony open. HB 111-OIL & GAS PRODUCTION TAX;PAYMENTS;CREDITS 2:58:24 PM CO-CHAIR JOSEPHSON announced that the final order of business would be HOUSE BILL NO. 111, "An Act relating to the oil and gas production tax, tax payments, and credits; relating to interest applicable to delinquent oil and gas production tax; and providing for an effective date." [Although stated on the recording Co-Chair Josephson handed the gavel to Co-Chair Tarr, Co-Chair Josephson retained the gavel.] REPRESENTATIVE BIRCH referred to HB 111 and asked whether there is a signed signature sheet to advance the bill as a committee bill. CO-CHAIR TARR said the matter was dealt with on the House floor. REPRESENTATIVE BIRCH restated his request for a copy of the signature sheet, noting that five signatures would imply a majority but his concern centers on consensus. CO-CHAIR TARR said a copy could be provided. She informed the committee there would be a brief introduction of HB 111 to provide the committee with an opportunity to preview the bill, and have ample time to prepare for hearings next week. REPRESENTATIVE JOHNSON read from a document provided 1/18/17 entitled House Resources Bill Hearing Request Requirements [document not provided], and inquired as to whether there is a bill packet available in order for the committee to follow along during the introduction of the bill. CO-CHAIR TARR stated the committee would not be working on the bill today, the intent of the introduction of the bill is to provide the committee several days to review the bill. She related her previous experience in this regard and advised all materials will be available online to the committee and to members of the public. REPRESENTATIVE JOHNSON remarked: I object because what we were given in the memorandum regarding the, a, discussion of scheduling in committee [has] not been met. 3:02:43 PM CO-CHAIR TARR advised it is the prerogative of the chair to schedule and introduce bills. Directing attention to HB 111, she listed the major features of the bill as follows: reduces the net operating losses from 35 percent to 15 percent; limits the abilities of companies to earn net operating losses to companies producing less than 15,000 barrels per day; caps the annual to 35 million from 70 million; limits repurchases after 2018; raises the minimum tax from 4 percent to 5 percent and hardens the floor; addresses the interest rate; reduces the per- barrel credit. [HB 111 was held over] REPRESENTATIVE RAUSCHER said there was some confusion as to who was responding as the chair and who was giving testimony. In response to Co-Chair Josephson's request for clarification of his question, he stated: If she was giving testimony and you were the chair and she was talking through the chair on the actual process, she answered about the process. I was just wondering, does the chair, which you were at the time, agree with that process. That's all. CO-CHAIR JOSEPHSON opined the ruling of the [Speaker of the House of Representatives, Alaska State Legislature (Speaker)] was proper and under the pertinent statute, when five members sign a request for a committee bill, the committee can entertain that bill. He said the committee would recess until 6:00 p.m., to continue hearing public testimony on HJR 5 and HB 40. REPRESENTATIVE BIRCH asked who has a copy of the signature sheet. CO-CHAIR JOSEPHSON expressed his belief the Speaker has a copy. REPRESENTATIVE BIRCH responded: He did not when we asked earlier. ... Is that where it's supposed to reside? And again, it's not knowing. CO-CHAIR JOSEPHSON deferred to Co-Chair Tarr. CO-CHAIR TARR assured the committee the co-chairs will provide a copy, and said a copy was provided to the Speaker this date. REPRESENTATIVE BIRCH asked Co-Chair Josephson to provide a copy of the signature sheet at the 6:00 p.m. meeting. 3:06:09 PM [Although on the audio recording Co-Chair Josephson misspoke and adjourned the meeting, at timestamp 3:05:05 p.m., he stated his intent to recess the meeting to 6:00 p.m., 2/8/17.] The House Resources Standing Committee meeting was [recessed to 6:00 p.m., 2/8/17.] 6:04:40 PM CO-CHAIR JOSEPHSON called the House Resources Standing Committee meeting back to order. [Present at the call back to order were Representatives Josephson, Talerico, Drummond, Birch, Johnson, Rauscher, and Tarr. Representative Parish arrived as the meeting was in progress. Attendance can be heard on the audio recording at timestamp 6:16:45 p.m.] REPRESENTATIVE JOHNSON questioned whether the 1:00 p.m., [2/8/17] meeting was adjourned or recessed. 6:04:51 PM CO-CHAIR JOSEPHSON answered the meeting was recessed. He remarked: I think part of the frustration I heard from some of the members, is with the ruling of the [House of Representatives, Alaska State Legislature] floor, and what happened on the floor and that the Speaker's ruling was affirmed. The bill that was transmitted to us is like any other bill, although a committee bill, it is fully before us in every respect. It is, it is a committee substitute like any committee substitute and I want to mention something else: committee substitutes are not crafted generally, I've never seen it, with the consensus of the committee's members. That is not the process and in fact, I just talked to a former co-chairman of finance in the other body, who said, "Often, we had a committee substitute that the members had never seen, including majority members." ... The second matter is relative to the five signatures, you asked for the five signatures, I think you're entitled to that. I'm not the keeper of the five signatures, I saw it on the Speaker's dais, I would go look there for it. Ms. Johnson, you talked about the memorandum, and whether we complied with the memorandum. The memorandum in question ... refers to prime sponsors, sponsor statements, and the like. It is, it is clearly for a personal piece of legislation, not a committee piece of legislation .... 6:07:13 PM REPRESENTATIVE BIRCH acknowledged he received a copy of the signatures on a memo dated 2/6/17. He remarked: I believe we met on February sixth, last, and five people are named on here with signatures, so I guess, my question is ... was this discussed on February sixth and just purposely avoided any discussion when we last met as a committee, and if so was this, was this done in secret? ... At least there's four members of this body that weren't involved on February sixth when this was circulated and discussed. ... In the interest of transparency and equity and process, ... it seems to me like if, if everybody's circulating HB 111 ... it seem[s] like we would've had a look at it on February sixth, when this memo was dated. CO-CHAIR JOSEPHSON restated that committee substitutes are not vetted through committee members and the matter was dealt with on the floor. 6:08:42 PM REPRESENTATIVE JOHNSON stated: ... one of the things that I feel at a loss with ... as a freshman, I don't know what the procedures are, I just go by what I see in Mason's Manual or what ... the rules that are actually out there. So, I just, just want to remind you that us freshmen that haven't been here, that have not seen what happened in other places, we just really don't know, we're just trying to make sure that we follow the rules. CO-CHAIR JOSEPHSON invited further public testimony on HB 40. 6:09:59 PM JAMES SQUYRES said he lives in a rural area deep in an unorganized borough and supports portions of the bill, but not all of the bill. He cautioned against the bill becoming an anti-trapping bill. In the area where he lives, "real trappers" have cut over 150 miles of sourdough trails deep in the wilderness, but there are others who trap in the road right-of- way. A concern in his neighborhood is a recreational trail that has traps 15 feet to 20 feet off of the road against the edge of the trail. Mr. Squyres has been warned not to spring or remove traps, but he does spring and remove traps on his posted, private land. He said he supports the portion of the bill related to recreational trails, however, he advised that many state, unmaintained roads that are privately maintained for private land access are often narrower than the right-of-way, and "lazy trappers" place traps on the road right-of-way next to, but not on, private land. In winter, the privately maintained state roads are used for skiing and snow machine riders, putting users at risk. He urged for an amendment to the bill, adding "or road" on line 11, page 2, of Version U, which would then read, "public trail or road developed or improved with public funds." Mr. Squyres said he opposes the tag requirements because real trappers set traps deep in the wilderness; if the bill makes traps on recreational trails illegal, they could simply be removed by law enforcement and avoid increasing the size and scope of government. 6:13:50 PM DAN DUNAWAY informed the committee he was speaking on his own behalf and said he is a member of the Nushagak Advisory Committee, Alaska Department of Fish & Game, and the Bristol Bay Federal Subsistence Regional Advisory Council, U.S. Fish and Wildlife Service, U.S. Department of the Interior. He related the Nushagak Advisory Committee addressed similar issues last year. He and others are generally opposed to regulations for trap tags and believe the issues are best handled by municipalities, as there are unique situations in each area. It is difficult to determine the distance from trails and whether trails are public, and he expressed his opposition to the bill. REPRESENTATIVE BIRCH asked whether there is any merit to addressing this issue with a local preference so that regulations focused on the Anchorage area would not affect those in Dillingham, Kotzebue, or other rural communities. MR. DUNAWAY opined that would be better. He also pointed out the city has asked him to trap nuisance beaver in areas that would be proscribed by the bill. 6:16:50 PM DAN BOYD, speaking in favor of HB 40, said he is a Dillingham resident. He said he has personal experience with some unethical trappers. This winter, in the Dillingham small boat harbor and park with playground equipment, an unethical trapper set a snare trap which caught a dog. There have also been fatal instances with traps set along road rights-of-way. He said he favored regulations concerning trapping and that require tags on traps with a number. Mr. Boyd also supports local control, but in Dillingham there is no municipal ordinance against trapping anywhere in the city. 6:19:07 PM ASHLEY STRAUCH disclosed she is staff to Representative Scott Kawasaki, Alaska State Legislature, and is testifying on her own behalf. She related a personal experience when 13 years ago her dog was killed by a trap set 150 feet from the entrance to Chugach State Park. Now she lives with constant fear for her dog in the wilderness in Fairbanks on designated trails. She acknowledged this is a sensitive issue but a balance can be struck between the interests of trappers and recreational users. There are responsible trappers who support the bill; however, without a solution by the legislature, incidents will continue. Ms. Strauch pointed out an identification tag on a conibear trap will not affect the outcome of an incident because conibear traps kill instantly. She said this is a statewide issue and the committee should consider all users of land. REPRESENTATIVE BIRCH asked whether the incident with her dog was near Chugach State Park. MS. STRAUCH said the incident occurred near Anchorage in Arctic Valley at the trailhead where there was an illegally set trap. She has heard trappers are concerned traps can be traced to owners by a member of the public, and suggested ADF&G should keep trappers' names confidential, thereby preventing any possible harassment. In further response to Representative Birch, she said without a tag on the trap, her family could not prove who set the trap illegally. 6:25:12 PM The committee took an at ease from 6:25 p.m. to 6:33 p.m. 6:33:03 PM CO-CHAIR JOSEPHSON resumed public testimony on HB 40. 6:33:25 PM LINDA DEFOLIART stated she served on the Fairbanks North Star Borough Trails Advisory Commission for a few years and whenever this issue arose, a member of the Alaska Trappers Association would attend the meeting. She said a person walking a dog off leash far from a trail can be fined $100, but a trapper can put a trap on a trail to a cabin in the White Mountains National Recreation Area and is within his/her legal rights. A trapper's response to the advisory committee, in regard to restricting the placement of traps, is that responsible trappers do not place traps inappropriately, but not all trappers are responsible. Ms. DeFoliart said she knew of two dogs in a dog team that were caught, and opined a person walking or mushing a dog on a leash on a major trail should not have to worry about a member of their party stepping in a trap. 6:34:40 PM KERI PETERSON told of her friends' anguish because their dogs were injured or killed by traps. She recommended that all who walk on a trail carry heavy-duty wire cutters and gauze. 6:35:36 PM PAMELA GOODE informed the committee many people in rural Alaska are unable to listen to the House [floor sessions] because there is no teleconference line, although there is one in the Senate. She said she is from the Interior and is opposed to HB 40 as written, although she strongly supports protecting public trails from traps. However, if no one is harmed, the trap should be removed with no fine or jail time for the trapper. In addition, trapping is part of Alaska's heritage and it is important to protect trappers, and the many miles of trap lines into the wilderness, from bureaucracy. She cautioned that "trails associations" may be anti-trap people; in fact, trappers cut fine trails through the wilderness and over time the trail becomes a public trail, thus trappers should be protected from others using their trails. Ms. Goode explained trappers put traps in the middle of their trails for efficiency. Finally, requiring trap tags is burdensome for trappers, expands the scope of government, and is state overreach. She urged the committee to make appropriate amendments to the bill. REPRESENTATIVE JOHNSON asked whether the fiscal note pertinent to the cost of tags on traps was available. CO-CHAIR JOSEPHSON advised the fiscal note is posted on the legislative Bill Action Status Inquiry System (BASIS), and he will provide additional copies to the committee. REPRESENTATIVE RAUSCHER asked Ms. Goode to propose an amendment to improve the bill. CO-CHAIR JOSEPHSON posed a defense that the trail in question is historically a trapping trail and not a public trail, and asked whether that would change Ms. Goode's position on that portion of the bill. MS. GOODE observed there are many trails in the unorganized borough put in place by trappers, and was unsure how to identify each. Also, trappers are unaware of new legislation and need to be informed. REPRESENTATIVE PARISH questioned if the definition of trails was narrowed to those with a gravel top would exclude trappers' trails and their trap lines. MS. GOODE said it should. For example, there is a well-known trail in the unorganized borough that is publicized and has signage, which would be sufficient. 6:44:08 PM MS. GOODE, in response to Co-Chair Josephson, identified the aforementioned trail as the Craig Lake Trail, which has a trap in the middle of the trail. In further response to Co-Chair Josephson, she said she would not object to a 200-foot "buffer" for the Craig Lake Trail, a public trail. REPRESENTATIVE RAUSCHER asked whether lesser footage would be a solution. MS. GOODE said she did not believe so. 6:45:30 PM RICHARD PERSON said he is a lifelong Alaskan who is a member of the Alaska Trappers Association (ATA), speaking on his own behalf. Mr. Person expressed his opposition to HB 40 because it pertains to issues that should be addressed by local entities. As a member of the Southcentral Chapter of ATA, he has personal experience attempting to address the conflict between trappers and pet owners in the Mat-Su and Kenai Peninsula areas. Both trappers and pet owners must be educated, and ATA has produced shared trails DVDs to explain how traps work and how to avoid them. Also, ATA gives workshops and produced with ADF&G a pet safety brochure, as ATA seriously seeks a resolution to this issue. At high-use areas and on multi-use trails, ATA provides signage asking trappers to avoid sets that will cause conflict with other trail users, and asking dog owners to keep their dogs close and on a leash. There is also a public service announcement broadcast by Anchorage television stations. Currently, Mr. Person said ATA is trying to set up voluntary trap-free areas including Crevasse Moraine, Government Peak, and West Trail Butte System, but is being stonewalled by the Mat-Su Borough Assembly. REPRESENTATIVE JOHNSON asked for more information and clarification on Mr. Person's comment about being stonewalled. MR. PERSON said over the past two years, ATA has attempted to create voluntarily trap-free areas where signage discourages trapping, but interest in this proposal stops with Mat-Su Borough staff, and the proposal has not been presented to the assembly. Mr. Person opined the assembly may have been influenced by legislation supported by Alaska Safe Trails; in fact, if ATA's proposal had remained on schedule, some incidents may have been avoided. REPRESENTATIVE JOHNSON asked Mr. Person to provide any pertinent written proposals that might be in progress in the Mat-Su valley area. 6:51:05 PM TOM LESSARD said he is opposed to HB 40 because the issue is not a public safety issue, and his nationwide research shows it is extremely rare for a person to get injured in a trap. On the other hand, bear baiting is a legitimate public safety issue because one could come upon a bear, thus bear baiting sites have existing setback rules. He opined the best solutions are found at a local level, such as designated dog parks and trap free zones that clearly have parameters. He was negotiating in Cooper Landing last winter with non-trappers, but after HB 40 was introduced the meetings were discontinued. Regarding setbacks, in mountainous areas a 200-foot setback may send a trapper up a mountain or down in a canyon. Further, dogs will get caught beyond the setback. 6:54:10 PM LYNN KEOGH said he is a lifelong Alaskan opposed to HB 40. He is working with ADF&G, providing a mail-out to over 28,000 licensed trappers, which is a much higher number than previous testimony indicting there were 2,500 to 3,000 trappers in the state. Because this issue is often portrayed as a public safety issue to BOG, he contacted the Department of Public Safety (DPS), but DPS has no record of a person injured by a trap. He opined this is a localized issue and should be dealt with on a local level by boroughs and assemblies. Regarding trails, he asked the committee to consider many trail systems meander over time, so the law would be unenforceable unless trails were surveyed. Mr. Keogh opined a 200-foot closure is unnecessary; there may be certain trails that should be closed to open or ground sets, but there is no risk to pets for underwater, elevated, or enclosed trap sets. 6:57:01 PM AL BARRETTE said he is opposed to HB 40 because the bill does not address the issue, but shifts the responsibility for the pet owner's negligence from pet owners to the trapper. His 40-mile trap line, on a state-maintained RS 2477 right-of-way, has approximately 200 trap sites. If the bill is enacted, a 200- foot setback would add 16 miles to his trap line which currently takes 10 hours to check. An additional 16 walking miles would add 5.3 hours to his time checking traps. He pointed out that those under 18 years-of-age are not required to have a license, and the bill would not require them to have trap tags. Also, if trappers have partners, traps would need multiple tags. Mr. Barrette said a medical situation caused him to have a friend run his trap line and - under the terms of the bill - his friend would have had to obtain 500-750 tags to lawfully run his trap line. He spoke of "trap line adventures" which offer experiences to non-Alaskans and who would also be required to have additional tags. He inquired as to whether ADF&G will have a sufficient number of unique tags for traps, and questioned the justification for the punitive measures in the bill. Mr. Barrette concluded is difficult to measure a braided trail, and trappers may not be sufficiently physically fit to walk off the trail and set their traps. CO-CHAIR JOSEPHSON asked whether Mr. Barrette served on BOG. 7:00:14 PM MR. BARRETTE said yes. He then advised two Alaska regulations within [5 Alaska Administrative Code 92.029] prohibit releasing a dog into the wild and BOG may remove "from the clean list" dogs if there is a predominance of evidence that the species is capable of surviving in the wild, and is capable of causing a genetic alteration of a species indigenous to Alaska. Mr. Barrette pointed out dogs make hybrid wolves or hybrid dogs, thus dog owners could be required by BOG to have a permit and keep dogs leashed at all times. REPRESENTATIVE JOHNSON pointed out HB 40 has a zero fiscal note, although the bill includes registering traps and issuing tags. CO-CHAIR JOSEPHSON said under the bill people would pay for the registration of traps. In further response to Representative Johnson, he said fiscal notes are brought forward by departments that are impacted by bills. Speaking from his experience, he said the court system may attach a fiscal note to a bill referred to the House Judiciary Standing Committee. He remarked: ... they don't necessarily come when you need them. ... Generally the departments, when they track bills, and they say, "that one's going to a hearing, we need a fiscal note," that's the general policy .... So, there could be other fiscal notes coming .... 7:02:07 PM [HB 40 was held over with public testimony open.] HJR 5-ENDORSING ANWR LEASING; RELATED ISSUES 7:02:40 PM CO-CHAIR JOSEPHSON announced that the final order of business would be CS FOR HOUSE JOINT RESOLUTION NO. 5(AET), Urging the United States Congress to pass legislation to open the coastal plain of the Arctic National Wildlife Refuge to oil and gas development; urging the United States Department of the Interior to recognize the private property rights of owners of land in and adjacent to the Arctic National Wildlife Refuge; relating to oil and gas exploration, development, production, and royalties; and relating to renewable and alternative energy technologies. 7:02:48 PM MIKE SATRE expressed his support of HJR 5, and urged the opening of leasing and oil and gas development in the Arctic National Wildlife Refuge (ANWR). He said Alaskans and previous legislatures have historically supported this action. Mr. Satre explained the resolution does not open all of ANWR to oil and gas development, but does open approximately 0.01 percent of the refuge close to existing development on the North Slope. Alaska has a history of responsibly developing oil and gas resources in that area, and can leverage the existing infrastructure, in order to provide oil and gas for the decades of world demand ahead. Alaska's future depends upon increased oil and gas development on state and federal lands. Taxing a declining resource will not provide fiscal stability because the state needs more oil in the Trans-Alaska Pipeline System. This issue is critical to his family's future. Mr. Satre urged the committee to expeditiously pass the resolution. 7:05:26 PM FRANK BERGSTROM provided a brief description of his many positive experiences on the North Slope and said he intends to return. Alaska needs ANWR's oil, and the magnitude of [oil and gas] development there is minimal; in fact, it is known it would take only 2,000 acres to recover all of the oil located there. He said there is no unmanageable downside to the thoughtful development of ANWR. At [Prudhoe Bay], one sees a large industrial plant: the footprint of development is small. This is a wonderful opportunity and he encouraged the committee to support the development of ANWR. 7:07:24 PM JULIA YORK informed the committee she was born and raised in Fairbanks and holds a master's degree in biology. She said she is aware of the state's budget crisis as her family has been affected, but the crisis is occurring because the state has been dependent upon oil revenue for too long; it is time to invest in a more reliable future for Alaska. The bill is financially and environmentally irresponsible and is based on outdated polling. In fact, oil development cannot be done in an environmentally responsible manner on the tundra. Ms. York said she has been to the North Slope oil fields and advised that restoration by oil companies after spills and disturbance is measured by "how much area is green," which is achieved by planting grass. She opined this is a misunderstanding of the coastal plain and is misleading; furthermore, the testimony of oil companies should be discounted as they have a direct financial incentive. Ms. York said this is not a matter of 2,000 acres of land, but of wide-reaching and permanent effects on a sensitive ecosystem, including multiplying the effect of climate change. She concluded that villages are in imminent danger. 7:11:08 PM STEVEN GREENLAW said he has lived in Alaska for four years and is a student at the University of Alaska Fairbanks. He stated there is a moral imperative to protecting ANWR because the dignity of the human person is tied to the land, and opening up the area for oil development would be a shortsighted and short- term benefit for a few. Further, there is an urgent need to substitute renewable resources for fossil fuels, for a new economy in Alaska that values its indigenous voices and lives. Mr. Greenlaw urged the co-chairs to consider the dignity of a human person in their ethics; to Gwich'in, ANWR is home and turning the land into resources would alienate and displace them. He quoted from a source in regard to the environmental crisis and the suffering of the excluded [document not provided], and expressed his opposition to HJR 5 "for the 1002 area." 7:13:19 PM RICHARD GLENN, Vice President, Land and Natural Resources, Arctic Slope Regional Corporation (ASRC), informed the committee ASRC, together with the Kaktovik Inupiat Corporation, own approximately 91,000 acres of land within the coastal plain of ANWR. He said ownership of the land is true, legitimate, and legal ownership of the land, but its owners are prevented from developing their land unless Congress acts to open ANWR for exploration. The 13,000 shareholders of ASRC, the village corporation, residents of Kaktovik, and the North Slope Borough have fought for the responsible exploration of the coastal plain, which can be done safely on the land where residents hunt, fish, and catch caribou. Mr. Glenn advised only through exploration of the area will a determination be made that there are resources for development - and the location of said resources - so responsible decisions can be made. He urged for the passage of the resolution. 7:15:37 PM KARA MORIARTY, President/CEO, Alaska Oil and Gas Association, said she was representing the Alaska oil and gas industry and referred to a letter of support for the resolution provided in the committee packet. She said opportunities to explore for resources cannot commence until the land is available for purchasing a lease. The resolution endorses Congress opening the land for the leasing process, which is extensive and requires environmental impact studies before and after lease sales. Furthermore, she pointed out the 1002 area was set aside specifically for oil and gas development in the Alaska Native Claims Settlement Act (ANCSA) and in the Alaska National Interest Lands Conservation Act (ANILCA), in order to protect "90-some percent" of the refuge and allow development in a certain area. Ms. Moriarty opined safe development is underway "right next door" and will continue for decades. She said the issue is on the national stage, and the industry has long supported increased access to this area. REPRESENTATIVE RAUSCHER asked for the average cost of a lease. MS. MORIARTY stated that is very difficult to speculate; for example, lease sales can generate from $200,000 to $2,100,000,000 in bids. 7:18:41 PM ALEXANDER GEDSCHINSKY acknowledged the state depends on oil and the exploration for oil should not be unreasonably stopped; however, ANWR should not be exploited. He pointed out ConocoPhillips Alaska, Inc. has announced a massive discovery of oil in the National Petroleum Reserve Alaska (NPRA), which can be brought to market quickly and cheaply. He said he was speaking for younger residents whose voices are not heard, and questioned why when forty people testified in opposition to the bill and one was in favor, legislators continued to support the bill. He asked whether constituents' comments matter as much as those of oil companies. 7:20:23 PM PRINCESS JOHNSON drew attention to a map in the committee room and pointed out about 95 percent of the North Slope is open to oil development; of the 5 percent left, she questioned when there will be protection for the remaining places. She said she is Neets'aii Gwich'in, a member of the Fairbanks Climate Action Coalition, a mother, a daughter, a sister, and has been speaking out on this issue, along with her home village of Vashraii K'oo, or Arctic Village, since she was 15 years old. Ms. Johnson referred to earlier testimony, noting people love Alaska because of its hunting, fishing, and natural resources. In regard to transparency, equity, and [governmental] process, she said over the past three years the U.S. Department of Interior updated the comprehensive conservation plan for ANWR, and during public testimony in Fairbanks the majority of Alaskans opposed development. As a result of that public process, the Obama Administration recommended to Congress to designate wilderness for the coastal plain of ANWR thus the resolution disregards, silences, and marginalizes the voices of Alaskans. In addition, continuing to privatize and enclose Alaska robs residents of their ability to enjoy the land and to feed their families. Ms. Johnson said the belief that all Alaskans want development in the coastal plain of ANWR is untrue. 7:22:47 PM ANNE SENECA, Spokesperson, Consumer Energy Alliance (CEA) Alaska, informed the committee CEA Alaska seeks to raise awareness about Alaska's contribution to domestic energy production for the Lower 48. Alaska's onshore and offshore production supplies oil to America's western region and establishes America's geopolitical presence in the Arctic region, which plays a role in consumer energy prices. The Arctic is a region of growing geopolitical significance, and CEA Alaska works to remind consumers of the importance of the Arctic region. Representative Westlake's leadership affords CEA Alaska the opportunity to educate consumers and advocate for lower energy prices through the following key points: only 8 percent of ANWR would be considered for exploration; if oil is discovered, 2,000 acres of the 1002 area would be used for surface structures; exploration would have a positive impact on the economy in Alaska and the Lower 48; there will be a need for tens of thousands of manufacturing and service jobs nationwide; history shows that oil and gas development and wildlife can peacefully coexist in the Arctic; in the oilfields there is a healthy population of brown bear, fox, musk ox, birds, and fish; dependence on imported oil contributes to national debt and threatens national security. Ms. Seneca concluded CEA Alaska supports an energy policy that includes renewable energy sources and fossil fuels, and supports exploration in the 1002 area of ANWR. 7:25:59 PM DONETTA TRITT said she is originally from Arctic Village. She informed the committee in late July or August, the Porcupine Caribou Herd leaves the 1001 area, also known as the calving grounds in the refuge, and then migrates to Canada. The migration route travels near Arctic Village, providing for the village as it has done for thousands of years. However in 2015, for an unknown reason, the caribou traveled directly to Canada, and that fall elders in Arctic Village were sick because Native foods were not available that winter. Ms. Tritt opined this is a hint of what could happen. 7:27:43 PM RON YARNELL said he owns a wilderness guiding business, All About Adventure, and has been leading trips in the Brooks Range since the early '70s and in ANWR since 1976. The Arctic refuge has provided his living for over 40 years, and for others as well. He questioned why some are anxious to open Alaska's treasures because over 95 percent of the north slope of the Brooks Range is already open to oil development, or is being opened, and opined protecting the 5 percent left is enough of a compromise. Mr. Yarnell inquired as to why one would destroy what one loves about Alaska: wilderness. His significant amount of experience in the coastal plain reveals that a unique wilderness experience, available only there, would not survive oil development. He said he has guided thousands across the coastal plain of the refuge and opined one should not vote for this resolution if one has not spent time there. In fact, the federal government is needed to protect special areas from local pressure which seeks to exploit other resources. Mr. Yarnell urged the committee to drop this resolution and concentrate development in Prudhoe Bay, which has high potential and fewer conflicts. 7:30:12 PM NARIEEZH PETER said she lives in Fairbanks and is Neets'aii Gwich'in and Navajo. She expressed her belief that not all Alaskans support oil drilling, especially in ANWR. Ms. Peter said oil is not bad, but through its extraction humans destroy the world, cause climate change, and hurt the land, which is bad. In the future she wants there to be caribou, moose, salmon, ducks, and blueberries that have supplied people with food and energy for generations; however, opening ANWR for drilling will disturb wildlife, the Porcupine Caribou Herd may be forced to find new birthing grounds, and the amount of salmon may be decreased. In addition, plants may become polluted which will diminish Native food sources thus ANWR should be protected. Ms. Peter went to Arctic Village with her family and wants to go again to see the beauty and eat Native foods. She said this is her future. In response to Co-Chair Josephson, she said she is 12 years old and goes to middle school in Fairbanks. 7:32:45 PM MATT GILBERT said he is Gwich'in Athabascan and is self- employed. He has a master's degree in rural development and is speaking from an economic point of view and from his Gwich'in culture worldview. He has learned the legislature gives up to a $500 million tax credit to oil companies just for drilling. In addition, oil companies make more from Alaska wellheads than from those in other countries - a 30 percent return - which he compared to corporate welfare. Mr. Gilbert opined if the state stopped the aforementioned [corporate welfare], it wouldn't need to develop ANWR. Also, climate change is worsening, and continuing the use of fossil fuels is suicidal; he urged for diversification and suggested the use of federal grants for renewable energy. 7:35:06 PM ENEI PETER said she is Navajo and (indisc.) and the mother of three Gwich'in Alaska Native daughters. She asked the committee to oppose HJR 5 because disturbing the refuge would be an affront to the Gwich'in way of life and to the cultural and subsistence survival of Alaska Native people; further, the severity of climate change demands that resources remain in the ground in some places. Opening more places for development will prevent the U.S. from meeting its commitment to curb climate change. Ms. Peter said there are other ways to find new opportunities for the economy and for jobs; in fact, there is no other choice but to diversify the state's economy. The existing policies that encourage more oil and gas development are outdated, and are based on a history of colonization and corporate structures that were set up to profit from Native people. 7:37:37 PM LINDA DEFOLIART spoke in opposition to HJR 5. Although oil companies assure development can occur safely and with a small footprint, climate change is warming the Arctic ground bringing different conditions such as thawing, freezing, sinking, heaving, and melting, which are unknown conditions. She questioned how oil companies can guarantee safety following the many spills from drilling and transporting oil; in addition, the viewshed in the refuge is huge and equipment could been seen for miles. The original footprint for Prudhoe Bay was 2,100 acres and is now over 600,000 acres. If the current course continues, eventually there will be no more fossil fuel, and she opined Alaska needs to find long term fiscal stability from another source. Ms. DeFoliart urged for the committee to take the long view and save the refuge for its intrinsic value and sustainable renewable resources. 7:38:48 PM JUSTINA BEAGNYAM spoke in opposition to HJR 5. She said she moved from Texas last year to Alaska because it is the last great wilderness, and she wished to merge her education in business with a career in environmental policies. She read a quote [document not provided]. Ms. Beagnym pointed out ANWR is one of the last remaining intact ecosystems in the world with a rich and fragile habitat, heritage, and culture. Ms. Beagnyam agreed there is too much reliance on fossil fuels and urged for a transition to renewable energy with no new leases on any land, and further research into renewable energy, which would lead to a more diversified economy. 7:41:55 PM JENNA JONAS stated the coastal plain of ANWR is a special place to her as she works as a guide in summer and explores and hunts with a dog team in fall, winter, and spring. Her personal experience has shown ANWR is a lush and delicate ecosystem; further, over the past 10 years, she has studied this issue, "and how much the narrative is changing." Decisions made today will have repercussions far in the future due to Alaska's position in the global crisis of climate change. Alaskans take pride in their independence, the land, their management of fish and game, and their respect for Native cultures. Ms. Jonas opined drilling for oil in one of the world's last great ecosystems does not honor the aforementioned values or improve the lives of future generations. She encouraged the committee to recognize that the value of oil will increase as it becomes scarcer, to value the opinion of those who live in the region, and to consider the long term effects of its decision on future generations. 7:43:53 PM CHRISTINA EDWIN stated her hope is the legislature is based on the core ideology of respect, obligation to the community, and stewardship. Based on this core ideology, she said she was present for the public process and noted there are different visions for the future: some wish to drill in the Arctic and some do not. Ms. Edwin urged members of the committee to follow their core ideology and serve their community; her core ideology is to oppose the resolution. 7:46:19 PM KEITH SILVER spoke in support of HJR 5 and advised he does not work for an oil company. The issue under discussion addresses 0.5 of 1 percent of ANWR and can be compared to Point Thomson, which is nearby and is an example of oil development done right in a small development. Point Thomson has been developed with long reach drilling and stringent safety environmental standards, as has Alpine. Mr. Silver said 70 percent of Alaskans agree with developing ANWR, which should be their decision. Recently, 9,000 jobs have been lost mostly due to the lack of oil and gas development work. He observed the 1002 area is about 150 miles north of Arctic Village over a mountain range, and the land has multiple uses. He urged for passage of the resolution in order to put oil in the pipeline and people to work. 7:48:24 PM MISTY NICKOLI said she is a lifelong Alaskan from Fairbanks. She read a quote [document not provided]. Ms. Nickoli said she and others have met with numerous legislators who have expressed the following: 1.) a desire to maintain the Alaska way of life and its ecosystems; 2.) frustration that "big oil" spent money from Permanent Fund Dividends (PFDs) instead of risking their tax subsidies; 3.) support of the economy by big oil is overshadowed by the fact the state does not profit, but pays out $319 million annually to big oil for mostly out-of-state workers, and Alaskan employees are the first to be laid off. Further, many legislators indicated an unwillingness to contest the refuge as that would mean political suicide. Ms. Nickoli said anti-Alaska policies cannot be conducted in shadow, and it is past time for legislators and Alaskans to develop sustainable industries and to stop the welfare system provided to big oil. 7:52:18 PM KERI PETERSON spoke against the bill. Her personal experience from spending a lot of time in the refuge is that it is not a wasteland, unlike what politicians and the oil companies say. She said she was happy that about 150 years ago, others had the foresight to preserve Yellowstone, Yosemite, the Grand Canyon, and other national parks, and ANWR is more wild and special. She worked at Prudhoe Bay, which is the opposite of wilderness, and it would be criminal to put this type of development in a pristine wilderness; in fact, there is no true wilderness left in the Lower 48, and now that it is known the earth is finite, existing intact wildlife systems should be preserved. The entire refuge, including the 1002 area, is critical habitat for wildlife, and its loss would be devastating, especially to the caribou and the Gwich'in people. If the refuge is not drilled, it will still exist after the oil is gone, which is important for tourism. 7:54:10 PM ODIN MILLER said according to a 2010 estimate, 95 percent of the food Alaskans eat is imported [document not provided]. Although Alaskans pride themselves on self-reliance, the state is vulnerable to disruptions in its food pipeline, such as after [the terrorist attacks of September 11, 2001]. A large portion of the 5 percent of local and wild food sources comes from salmon, salmonberries, and caribou, which are depended upon by indigenous rural Alaskans. Mr. Miller said he is a lifelong Alaskan and is an anthropology student studying human/reindeer/caribou interactions in Northwest Alaska. Caribou are facing challenges from climate change and have disappeared from parts of the circumpolar North, and caribou as a food source cannot be replaced. He questioned whether one can trust a presidential administration that is going to dismantle existing environmental regulations, to conduct responsible environmental impact studies in ANWR. 7:56:57 PM REPRESENTATIVE RAUSCHER asked to call for the question. CO-CHAIR JOSEPHSON said there is no question. REPRESENTATIVE JOHNSON offered to make a motion to move [the resolution] out of committee. CO-CHAIR JOSEPHSON said, "I would decline that, if I can." REPRESENTATIVE JOHNSON opined a vote on her request is needed. 7:57:32 PM The committee took an at ease from 7:57 p.m. to 8:25 p.m. 8:25:36 PM REPRESENTATIVE JOHNSON removed [her request to make a motion]. CO-CHAIR JOSEPHSON, stating there was no objection, continued public testimony. 8:26:01 PM SAM ALEXANDER spoke in opposition to HJR 5. He stated he is a Gwich'in from Fort Yukon and a lifelong Alaskan who is tired of seeing Alaska kick the can of fiscal responsibility down the road. For 40 years oil fields have bestowed immense wealth upon the state, but the state remains addicted to oil and more revenue, and willing to gamble its children's birthright to a truly wild and natural world. As a veteran serving in Iraq, he saw the waste and death the effect of greed for oil had on the Iraqi people. The same oil companies are destroying Alaska and do not have a long term interest in the state, except to make money. Mr. Alexander advised drilling for oil will not provide national security; in fact, oil development contributes to peril by causing climate change and emitting greenhouse gasses. He urged the committee to stop gambling with the future of Alaska. 8:27:37 PM JESSICA GIRARD stated she is a disabled combat veteran who served twice in Iraq. She said the addiction to oil sent her to Iraq, and she has been fighting against the addiction ever since. The answer to security is to "transition" so wars are not fought over oil, and refugees will not need to come from other states to untainted places. Alaska has immense resources and a culture that provides depth and essence to the land. Ms. Girard served in the military for the diversity of culture and said the Gwich'in cannot be separated from the caribou they depend upon, or from the land which is theirs. 8:29:42 PM MICHELLE TOOHEY stated she is one of the 70 percent of Alaskans who support opening exploration and production of oil and gas in the small portion known as the 1002 area of ANWR. The percentage of 70 percent support comes from polls conducted in 2016 which also showed support has been consistent since the 1990s. Strong support should not be a surprise as the 1002 area was intentionally set aside from being designated wilderness as part of the Alaska National Interest Lands Conservation Act; in fact, 19 million acres is federally designated wilderness and 92 percent of the refuge is closed for development. Ms. Toohey opined showing Congress that Alaskans support the resolution is a must. She recommended the resolution move through the process as quickly as possible in order to inform Congress that Alaskans firmly stand behind oil and gas development in ANWR. 8:31:38 PM MELINDA CHASE, spokesperson, Fairbanks Climate Coalition, said she strongly believes fossil fuel should be left in the ground because Interior Alaska is experiencing an increasingly warming climate. Last year in the Interior, there were four deaths related to open water and two of the victims had traditional knowledge of the land; however, the weather has become variable. She urged for the committee to look beyond Alaska to the environment of the world, and advance Alaska to a more just economy, as children need the land. Ms. Chase referred to national plans to keep the atmosphere clear. As the only Arctic state in the nation, Alaska has a responsibility to its children and the nation, and she urged that the resolution not pass, and for members of the committee to educate themselves on the changing climate and its effects on Alaska. 8:34:39 PM SHANNON BUSBY said she was speaking in opposition to HJR 5. The practice of assigning numbers to places distances one from a sense of place. The beautiful coastal plain and ANWR are beautiful places to be left untouched. 8:35:33 PM BARBARA HUFF TUCKESS, Director, Legislative Affairs, Teamsters Local 959, spoke in support of the committee substitute (CS) for HJR 5. Teamsters Local 959 represents approximately 7,000 members working in industries except for fish, and represents members who work in the oil and gas industry. The opportunity for Congress to open the 1002 area and ANWR would create additional jobs as well as put additional barrels of oil in the pipeline. She directed attention to her written testimony provided in the committee packet. 8:37:16 PM KIM HEACOX said he was opposed to HJR 5. He is a contract writer with National Geographic who has lived in Alaska for 35 years, and has visited the coastal plain of ANWR which he found to be a beautiful and compelling place. Mr. Heacox opined wild, natural beauty is essential to one's mental and spiritual health and inspires one to care for the planet. He read a quote [document not provided]. Although burning oil has brought wealth, it would be a poor decision to drill for oil and gas in the 1002 area, which is the biological heart of ANWR. He read another quote [document not provided]. Science warns if 20 percent of known oil reserves in the world are burned, the global environment and the geopolitical sphere will be destabilized and condemn future generations to a diminished quality of life. However, the GOP in Congress refuses to acknowledge human-caused climate change. He read another quote [document not provided]. Mr. Heacox has heard fears that the fossil fuel economy is becoming immoral, in a manner similar to 200 years ago in the Old South, when its economy was based on slavery. He concluded drilling for oil is an economic narcotic and a short term solution to a long term problem, and suggested the clean energy revolution is waiting. 8:40:35 PM JEANINE ST. JOHN said she was representing the Lynden family of transportation and logistics companies, which is a multimodal transportation company providing transportation links that bring essential goods and services to Alaska, and transporting Alaska products to world markets for over 100 years, and she further described Lynden companies' services. Ms. St. John said Alaska is a resource state and all benefit from a healthful economy; Alaskans rely on the ability to develop resources whether they are fish, minerals, oil and gas, and Alaska's robust economy is based on the ability to produce resources. She said Lynden's support of the development of the 1002 area is based on history that development of energy resources can be accomplished in an environmentally safe manner. She stated concern about the recession and the budget deficit and, on behalf of Lynden and its over 900 Alaska employees, urged support for HJR 5. 8:42:48 PM SARAH JAMES said she against HJR 5 and grew up in the Arctic Village area where she and her family hunt, fish, and gather in a remote village and live a good life. She is proud Gwich'in Athabascan Alaskan, and (indisc.) Indian, an elder, and she respects elders of the past. She said she was speaking on behalf of the Gwich'in nation, and she was one of four chosen to speak for her nation, for the caribou, and her way of life. In Arctic Village in 1988, there was a rebirth of the Gwich'in nation after it was divided by the U.S. and Canada border. Before first contact, the coastal plain of ANWR was the birthplace of the Porcupine Caribou Herd and was not threatened by oil and gas development. Since then, the Gwich'in nation fought hard with others and won battles without compromise to say "no" to oil and gas. Ms. James stated 75 percent of her food is wild meat, mostly caribou, which also provides materials for clothing, arts and crafts, and tools. She further described life and a culture focused on caribou, and urged the committee to permanently protect the coastal plain of ANWR, which is a sacred place. 8:47:02 PM ELLA EDE said she is one of thousands of Alaskans who have been laid off due to industry layoffs in the past few years. She said she was proud of having worked in the industry for over 25 years in the environmental field and stakeholder relations, and helping the industry responsibly develop the North Slope. Ms. Ede questioned why anyone would oppose the resolution, and expressed her support of HJR 5 on behalf of her husband and four children. She said she hopes her children will be able to live in Alaska and earn a living wage. Her entire family is in support of opening ANWR and continuing to develop resources, which is mandated by the state constitution, the Alaska Native Claims Settlement Act, and Native corporations. Ms. Ede said she was not paid to testify, but felt it was important to speak on behalf of the resolution. 8:49:33 PM MICHELLE EGAN said she was speaking on behalf of the Alyeska Pipeline Service Company (Alyeska) in support of HJR 5. Expanded access to responsible development of oil and natural gas resources on the North Slope is vitally important to national energy security, job prosperity, the Alaska economy, and the future of the Trans-Alaska Pipeline System (TAPS). The ongoing success of the pipeline system is dependent upon healthy levels of Alaska crude oil production; in fact, TAPS once delivered 2,100,000 barrels of oil per day, but in 2016, after the first throughput increase since 2002, delivery averaged 517,000 barrels per day. Although Alyeska can respond, the lesser flow creates long term challenges that will grow in difficulty if the decline trend continues. The most effective solution is to deliver more oil into TAPS from the North Slope. Ms. Egan said Alyeska strongly supports responsible exploration efforts that result in increased throughput into TAPS, including the 1002 area of ANWR. 8:51:49 PM CARL PORTMAN, Deputy Director, Resource Development Council (RDC), informed the committee RDC strongly supports HJR 5 and has consistently supported the opening of the 1002 area of ANWR to oil and gas development. According to a study, oil and development in ANWR could increase domestic production from 510,000 to nearly 1,500,000 barrels per day for approximately 12 years, saving the nation billions of dollars in imported oil, creating thousands of new job, refilling TAPS and generating new state and federal revenue. He said the 1002 area is the most prospective conventional onshore prospect in the country, holding an estimated 5.7 [billion] to 16 billion barrels of technically recoverable oil. Not one acre of designated wilderness would be disturbed by opening the 1002 area due to advances in technology; it is possible to develop the energy reserves inside ANWR using only a fraction of the area and without significant disturbance to wildlife. He concluded that the 1002 area of ANWR should be open to exploration and development for national security and the Alaska economy, because the Arctic outer continental shelf (OCS) is not available, and RDC strongly urges for the passage of HJR 5. 8:54:00 PM CAROLYN KREMERS said she has lived in Alaska for thirty years and served in Russia for two years as a U.S. Fulbright Scholar. In 1999, she began writing a poem which she submitted as her testimony in opposition to HJR 5. She read from the poem in part [document not provided]. 8:56:44 PM JAMES SQUYRES recommended a book on ANWR and spoke in support of HJR 5. He urged for the bill to move from committee. 8:57:38 PM JOHN HYDE spoke in opposition to the bill. He questioned how much the oil in the 1002 area is worth, in order to define whether it is worth the risk of destroying what exists there. He observed most wildlife refuges and national parks have a buffer zone surrounding them, but ANWR has none, and wildlife does not adhere to boundaries. In his experience working for the Alaska Department of Fish & Game, he learned safety cannot be guaranteed; for example, shortly after the [Exxon Valdez oil spill of 3/24/28], he witnessed what was caused by human error, and all errors cannot be prevented. 9:00:04 PM CO-CHAIR JOSEPHSON closed public testimony. REPRESENTATIVE BIRCH directed attention to a letter provided in the committee packet from Governor Walker that indicated the governor's support for HJR 5. He questioned whether comments from Representative Westlake's staff should be heard at this time. CO-CHAIR JOSEPHSON expressed his confidence that Representative Westlake supports moving the resolution from committee. REPRESENTATIVE BIRCH encouraged a yes vote on the resolution. CO-CHAIR JOSEPHSON addressed the witnesses in the room who testified about their concerns, and opined their concerns are not wrong in their "long view" of [environmental impacts to the planet]; however, the state needs revenue, which is also an important factor. 9:02:57 PM The committee took a brief at ease. CO-CHAIR JOSEPHSON announced public testimony was reopened. 9:05:08 PM KRISTINA OLESKA (indisc.) said she does not want the resolution to pass. Her community of Sutton has experienced what happens when the fossil fuel industry destroys habitat; Moose Creek is a place that has taken millions of dollars, work by the community, and decades, to return to "a fraction of what it was in the past." She pointed out the oil and gas industry has a poor record of placing the health and safety of people and the environment over that of its profits. In Alaska, the Exxon Valdez oil spill affected the economy through the losses in commercial fishing, recreation, and tourism. She opined there is a need for the state to stop giving [disasters] a chance. The former chief executive officer of the company responsible for the Exxon Valdez spill is now the Secretary of State, and she does not trust him or the federal administration to protect the lives of Alaskans, thus it is now up to the committee. She referred to recent oil spills and other disasters and opined the state cannot afford to clean up after industry - putting the burden on the younger generation - and she urged the committee to not pass the resolution. 9:07:49 PM CO-CHAIR JOSEPHSON closed public testimony. 9:08:05 PM CO-CHAIR TARR said she shares concerns and the sense of urgency about climate change; however, the state's current revenue situation is very resource dependent. She recalled during former Governor Sarah Palin's administration there was a statewide energy plan coordinator and a climate change subcabinet, and cautioned the state has missed opportunities without those positions in place. Co-Chair Tarr expressed her hope the current administration will reconvene the subcabinet, and spoke of relevant legislation that will come before the committee. The committee seeks to support environmentally responsible development, to meet the state's energy needs, and to share concerns about the urgency of climate change action. 9:10:10 PM CO-CHAIR TARR moved to report [CSHJR 5(AET)] out of committee with individual recommendations and the attached zero fiscal note. CO-CHAIR TARR objected. 9:10:39 PM A roll call vote was taken. Representatives Birch, Johnson, Rauscher, Talerico, Drummond, Parish, and Josephson voted in favor of CSHJR 5(AET). Representative Tarr voted against it. Therefore, CSHJR 5 (AET) was reported out of the House Resources Standing Committee by a vote of 7-1. 9:12:00 PM ADJOURNMENT There being no further business before the committee, the House Resources Standing Committee meeting was adjourned at 9:12 p.m.

Document Name Date/Time Subjects
House Resources 2017 AOGCC.ppt HRES 2/8/2017 1:00:00 PM
House Resources 2017 AOGCC.pdf HRES 2/8/2017 1:00:00 PM
HB040 CS ver U.pdf HRES 2/8/2017 1:00:00 PM
HB 40
HB040 Sponsor Statement.pdf HRES 2/8/2017 1:00:00 PM
HB 40
HB040 Summary of changes.pdf HRES 2/8/2017 1:00:00 PM
HB 40
HB040 Supporting Documents 1.pdf HRES 2/8/2017 1:00:00 PM
HB 40
HB 40 support.pdf HRES 2/8/2017 1:00:00 PM
HB 40
hb040 fiscal note 1 vers D.pdf HRES 2/8/2017 1:00:00 PM
HB 40
hb040 fiscal note 2 vers D.pdf HRES 2/8/2017 1:00:00 PM
HB 40
hb040 fiscal note 3 vers D.pdf HRES 2/8/2017 1:00:00 PM
HB 40
hb040 fiscal note 1 vers U.pdf HRES 2/8/2017 1:00:00 PM
HB 40
hb040 fiscal note 2 vers U.pdf HRES 2/8/2017 1:00:00 PM
HB 40
hb040 fiscal note 3 vers U.pdf HRES 2/8/2017 1:00:00 PM
HB 40
HB040 CS ver U.pdf HRES 2/8/2017 1:00:00 PM
HB 40
HB040 Summary of changes.pdf HRES 2/8/2017 1:00:00 PM
HB 40
HB040 Supporting Documents 1.pdf HRES 2/8/2017 1:00:00 PM
HB 40