Legislature(1995 - 1996)
04/03/1996 04:11 PM House RES
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE RESOURCES STANDING COMMITTEE
April 3, 1996
4:11 p.m.
MEMBERS PRESENT
Representative William K. "Bill" Williams, Co-Chairman
Representative Joe Green, Co-Chairman
Representative Scott Ogan, Vice Chairman
Representative Alan Austerman
Representative Pete Kott
Representative Don Long
Representative Irene Nicholia
Representative John Davies
MEMBERS ABSENT
Representative Ramona Barnes
COMMITTEE CALENDAR
HOUSE JOINT RESOLUTION NO. 64
Relating to extension of the United States Forest Service timber
sale contract with the Ketchikan Pulp Company.
- PASSED CS HJR 64(RES) OUT OF COMMITTEE
PREVIOUS ACTION
BILL: HJR 64
SHORT TITLE: EXTENSION OF KETCHIKAN PULP CO. CONTRACT
SPONSOR(S): RESOURCES
JRN-DATE JRN-PG ACTION
03/25/96 3310 (H) READ THE FIRST TIME - REFERRAL(S)
03/25/96 3310 (H) RESOURCES
04/02/96 (H) RES AT 4:00 PM CAPITOL 124
04/02/96 (H) MINUTE(RES)
04/03/96 (H) RES AT 4:00 PM CAPITOL 124
WITNESS REGISTER
SANDRA MESKE, Vice President
Alaska Women in Timber
111 Stedman Street
Ketchikan, Alaska 99901
Telephone: (907) 225-1060
POSITION STATEMENT: Testified in support of CS HJR 64.
DEBBIE GRAVEL
7941 South Tongass
Ketchikan, Alaska 99901
Telephone: (907) 225-7941
POSITION STATEMENT: Testified in opposition to CS HJR 64.
DON MULLER
P.O. Box 1042
Sitka, Alaska 99835
Telephone: (907) 747-8808
POSITION STATEMENT: Testified in opposition to CS HJR 64.
WILLIAM MILLER
2409A Sawmill Creek Road
Sitka, Alaska 99835
Telephone: (907) 747-5103
POSITION STATEMENT: Testified in opposition to CS HJR 64.
DESIREE JANZEN
H & L Salvage, Inc.
P.O. Box 19535
Thorne Bay, Alaska 99919
Telephone: Not Available
POSITION STATEMENT: Testified in support of CS HJR 64.
KELLY L. GERRITS
P.O. Box 19365
Thorne Bay, Alaska 99919
Telephone: (907) 828-3938
POSITION STATEMENT: Testified in support of CS HJR 64.
BECKY KNIGHT
P.O. Box 1331
Petersburg, Alaska 99833
Telephone: (907) 772-9391
POSITION STATEMENT: Testified in opposition to CS HJR 64.
JAY PRITCHETT
P.O. Box 1091
Petersburg, Alaska 99833
Telephone: (907) 772-3213
POSITION STATEMENT: Testified in opposition to CS HJR 64.
PAT ROWLAND, President
Southeast Island School District School Board
Box 18111
Coffman Cove, Alaska 99918
Telephone: (907) 329-2216
POSITION STATEMENT: Testified in support of CS HJR 64.
DAN HAYES, JR.
P.O. WWP - Wale Pass
Ketchikan, Alaska 99950-0280
Telephone: (907) 846-5213
POSITION STATEMENT: Testified in support of CS HJR 64.
JEFFREY R. MEUCCI, Mayor
City of Petersburg
P.O. Box 1086
Petersburg, Alaska 99833
Telephone: (907) 772-4669
POSITION STATEMENT: Testified on CS HJR 64.
IRENE ALEXAKOS
Box 23426
Ketchikan, Alaska 99901
Telephone: Not Available
POSITION STATEMENT: Testified on CS HJR 64.
KATHY COGHILL, Representative
Juneau Chapter, National Audabon Society
P.O. Box 33863
Juneau, Alaska 99803
Telephone: Not Available
POSITION STATEMENT: Testified in opposition to CS HJR 64.
TROY OLIVADOTI
P.O. Box 8974
Ketchikan, Alaska 99901
Telephone: (907) 228-2161
POSITION STATEMENT: Testified in support of CS HJR 64.
FRED ATHORP
10 Creek Street
Ketchikan, Alaska 99901
Telephone: (907) 225-3452
POSITION STATEMENT: Testified in opposition to CS HJR 64.
ROBERT ELLIS
P.O. Box 2966
Sitka, Alaska 99835
Telephone: (907) 747-8950
POSITION STATEMENT: Testified in opposition to CS HJR 64.
FLORIAN SEVER
1706 Edgecumbe Drive
Sitka, Alaska 99835
Telephone: (907) 747-8466
POSITION STATEMENT: Testified in opposition to CS HJR 64.
MICHAEL KEMPNICH
P.O. Box 119
Craig, Alaska 99921
Telephone: (907) 826-3700
POSITION STATEMENT: Testified on CS HJR 64.
BARRY HOGARTY, Employee
Ketchikan Pulp Company
P.O. Box 6193
Ketchikan, Alaska 99901
Telephone: (907) 228-2360
POSITION STATEMENT: Testified in support of CS HJR 64.
MARGARET CLABBY
7960 South Tongass
Ketchikan, Alaska 99901
Telephone: (907) 225-0800
POSITION STATEMENT: Testified on CS HJR 64.
DICK MYREN
3320 Fritz Cove Road
Juneau, Alaska 99801
Telephone: (907) 789-9165
POSITION STATEMENT: Testified in opposition to CS HJR 64.
KARLA HART, Vice President
Alaska Wilderness Recreation & Tourism Association
369 South Franklin, Suite 200
Juneau, Alaska 99801
Telephone: (907) 463-3466
POSITION STATEMENT: Testified in opposition to CS HJR 64.
MICHAEL SALLEE
P.O. Box 7603
Sitka, Alaska 99835
Telephone: (907) 747-7603
POSITION STATEMENT: Testified on CS HJR 64.
HELEN DRURY
1011 Halibut Point Road
Sitka, Alaska 99835
Telephone: (907) 747-8019
POSITION STATEMENT: Testified in opposition to CS HJR 64.
ELIZABETH WEST
795 Forest Park
Ketchikan, Alaska 99901
Telephone: (907) 247-2562
POSITION STATEMENT: Testified in support of CS HJR 64.
JUDY BEAR
P.O. Box 5671
Ketchikan, Alaska 99901
Telephone: Not Available
POSITION STATEMENT: Testified on CS HJR 64.
KAREN BRICKEN
3444 Nowell Avenue, Number 308
Juneau, Alaska 99802
Telephone: (907) 586-1599
POSITION STATEMENT: Testified in opposition to CS HJR 64.
MIKE BETHERS, Owner
Fishing Charter Business
P.O. Box 210003
Auke Bay, Alaska 99821
Telephone: (907) 789-0165
POSITION STATEMENT: Statement was read into the record.
KATHY LIETZ
P.O. Box 19112
Thorne Bay, Alaska 99919
Telephone: (907) 828-3986
POSITION STATEMENT: Testified in support of CS HJR 64.
SUSAN THOMPSON, Teacher
Thorne Bay, Alaska 99919
Telephone: (907) 828-3981
POSITION STATEMENT: Testified in support of CS HJR 64.
CLARICE JOHNSON
506 O'Cain Street
Sitka, Alaska 99835
Telephone: (907) 747-5134
POSITION STATEMENT: Testified in opposition to CS HJR 64.
PAGE ELSE
2219 Sawmill Creek Road
Sitka, Alaska 99835
Telephone: (907) 747-7448
POSITION STATEMENT: Testified on CS HJR 64.
HEATHER MUENCH
P.O. Box 6811
Ketchikan, Alaska 99901
Telephone: (907) 225-5372
POSITION STATEMENT: Testified in support of CS HJR 64.
TOM FOUTS
P.O. Box 5671
Ketchikan, Alaska 99901
Telephone: (907) 247-7557
POSITION STATEMENT: Testified in opposition to CS HJR 64.
ERIC MUENCH
P.O. Box 6811
Ketchikan, Alaska 99901
Telephone: (907) 225-5372
POSITION STATEMENT: Testified in support of CS HJR 64.
DALE ROGERS
2303 Fifth Avenue
Ketchikan, Alaska 99901
Telephone: (907) 225-5577
POSITION STATEMENT: Testified in opposition to CS HJR 64.
CLIFF TARO, President
Southeast Stevedoring Corporation
P.O. Box 8080
Ketchikan, Alaska 99901
Telephone: (907) 225-6157
POSITION STATEMENT: Testified in support of CS HJR 64.
ROYCE RANNIGER
P.O. Box 702
Ward Cove, Alaska 99928
Telephone: (907) 225-5000
POSITION STATEMENT: Testified in support of CS HJR 64.
PHIL MCELROY
14240 North Tongass
Ketchikan, Alaska 99901
Telephone: (907) 225-2256
POSITION STATEMENT: Testified in support of CS HJR 64.
KEITH STUMP, Attorney and Owner of
a sailboat chartering business
306 Main Street, Suite 314
Ketchikan, Alaska 99901
Telephone: (907) 225-9818
POSITION STATEMENT: Testified in support of CS HJR 64.
MATT HEMMINGWAY
P.O. Box 1552
Ward Cove, Alaska 99928
Telephone: (907) 228-2341
POSITION STATEMENT: Testified in support of CS HJR 64.
BRUCE ROMINE, Pipefitter
P.O. Box 896
Ward Cove, Alaska 99928
Telephone: (907) 228-6955
POSITION STATEMENT: Testified in support of CS HJR 64.
ROBERT BUCKNELL
351 Buren Road
Ketchikan, Alaska 99901
Telephone: (907) 225-5577
POSITION STATEMENT: Testified in support of CS HJR 64.
AMY SKILBRED
4477 Abby Way
Juneau, Alaska 99801
Telephone: (907) 780-4649
POSITION STATEMENT: Testified in opposition to CS HJR 64.
KURT BODENBENDER
P.O. Box 33037
Juneau, Alaska 99803
Telephone: (907) 586-1594
POSITION STATEMENT: Testified in opposition to CS HJR 64.
BILL THOMAS, Assembly Member
Haines Borough
P.O. Box 1209
Haines, Alaska 99827
Telephone: Not Available
POSITION STATEMENT: Testified in support of CS HJR 64.
ACTION NARRATIVE
TAPE 96-50, SIDE A
Number 001
CO-CHAIRMAN BILL WILLIAMS called the House Resources Committee
meeting to order at 4:11 p.m. Members present at the call to order
were Representatives Williams, Nicholia, Long, Austerman. Members
absent at the call to order were Representatives Green, Ogan, Kott,
Barnes and Davies.
HJR 64 - EXTENSION OF KETCHIKAN PULP CO. CONTRACT
CO-CHAIRMAN WILLIAMS announced the meeting would be teleconferenced
and the committee would take public testimony on Committee
Substitute for HJR 64 which had been adopted by the committee the
previous evening. He noted that public testimony would be limited
to three minutes.
Number 330
SANDRA MESKE, Vice President, Alaska Women in Timber, testified
from Ketchikan that she represents 300+ members in their grassroots
organization that supports communication, education and responsible
legislation concerning natural resources. She said, "I'm here
today on behalf of those 300+ members saying we want, we desire and
we need a stable economical timber industry that Ketchikan Pulp
(KPC) can provide for many of our members. Within the next five to
eight years, KPC is willing to invest $200 million to remain
competitive in the world's pulp market. Investments in
environmental improvements are already underway, but to invest this
huge amount of money, a resolution such as HJR 64, must move boldly
forward to ensure that the mill is environmentally sound,
economically competitive for the long term. I am here to fully
support a 15-year extension. This issue is not whether or not
Alaska can manage the vast forest lands that provide viable habitat
for wildlife, recreation and forest industry. The experience over
the past four years clearly confirms Alaska can manage (indisc.).
Our streams are healthy, fishing is at its best and thousands of
people like you and I have been able to build productive lives
growing and producing useful products. Without KPC's extension,
the facility will not be able to maintain a vigorous economically
viable forest industry in Southeast. Representative Williams, we
are not only requesting an extension, but we need a large enough
timber supply that can meet the job level that the Tongass Timber
Reform Act (TTRA) has. With the TTRA supply, we can renew the
Wrangell and Sitka mills and restore economically our jobs and our
well being. I thank you for the opportunity to speak before the
House Resource Committee and once again confirm that Alaska Women
in Timber supports the extension for Ketchikan Pulp Company."
CO-CHAIRMAN WILLIAMS called on the next person in Ketchikan to
testify.
Number 484
DEBBIE GRAVEL testified from Ketchikan and stated, "A 15-year
contract extension would be a short-term (indisc.) to KPC and a
long-term disaster for the Tongass National Forest. KPC is once
again orchestrating a propaganda effort to generate fear and
antagonism to maintain a federally subsidized competitive
advantage. A premise of the original 50-year contract was that the
resource was renewable and by the contract's end KPC would be
harvesting second growth. How I wish a 15-year extension of the
contract would (indisc.) second growth. Areas that have already
lost wildlife habitat and biological diversity of old growth. On
Monday, Troy Rheinhart stated in a public commentary on KRBG Radio
that KPC wants to be the leader of protecting the environment.
Last year alone, KPC paid $6 million in fines for violating clean
air and water standards. Fifteen more years is a long-term
contract and we will not only have little left to cut, but we will
have further impaired our air and water."
Number 564
MS. GRAVEL continued, "I arrived in Ketchikan in 1976 and Ketchikan
was rallying to defend the pulp mill, as they threatened closure
due to their stated financial inability to fulfill the
Environmental Protection Agency's (EPA) regulation for secondary
treatment. The threatened closure and perceived impact on
Ketchikan's economy threatened residents then as is occurring
today. I would like to quote Malcom Doran (sp) who testified on
May 12, 1976, at the EPA hearing. Quote `It's time Ketchikan
united its positive thinking. Put KPC in the proper perspective
and truly strive for economic freedom, self-respect and then once
again citizens can become the type of rugged, self-reliant
individuals that over the years have become synonymous with the
term Alaska' end quote. If KPC had sat idle rather than purchase
timber on an open market, perhaps some of the smaller timber firms
who have attempted to operate in Southeast Alaska would have been
able to compete with KPC for the necessary timber to step in and
boost the lagging economy. This would also give existing local
mills a chance to expand operations and to compete in lumber,
shingle and wood product markets up North and down South."
Number 625
MS. GRAVEL further stated, "If Ketchikan residents remain hostage
to KPC's campaign of economic dependence, we lose our chance to
have an independent and stable economy. A report entitled,
Economic Well-Being and Environmental Protection of the Pacific
Northwest, edited by T. M. Power, an economist with the University
of Montana, has documented remarkable growth in the economic vigor
in Idaho, Montana, Oregon and Washington in the last decade even as
natural resource industries - timber, fishing, mining and
agriculture - have experienced decline and have eliminated tens of
thousands of jobs. Instead of devastating the economy of the
region, others have stepped forward. High tech design and
manufacturing industries, as well as diversification of the
historical base as a secondary manufacturing has helped modernize
and diversify the economy as a region. It is the conclusion of the
34 economists authoring this report that the two main factors to
this economic growth are the region's quality of life, water and
air quality and recreational opportunities, scenic beauty and the
fish and wildlife and the increasing mobility of people's business.
To quote the report, `A healthy environment is the major stimulus
for healthy economy.' Thank you for this opportunity to comment."
CO-CHAIRMAN WILLIAMS announced the committee would now hear
testimony from Sitka.
Number 707
DON MULLER testified via teleconference from Sitka that he has been
a businessman in Sitka for 20 years. He said, "I am very much
opposed to the 15-year contract. I want to make two points this
afternoon. The first - a specific point in the bill - the third
Whereas, it says `pulp mills protects forest health by using that
significant portion of the Tongass National Forest that consists of
dead, dying and over-mature timber.' That saddens me. It reminds
me of the Viet Nam war when the military would go into a village
and say we've got to destroy you to save you. It saddens me that
some legislators in Alaska are going after the Tongass in the same
way that we went after the Communists 30 years ago. It seems like
we should have learned something by that. The second thing I want
to talk about is one of the reasons that's generally given for this
extension is the necessity for Southeast economy and Ketchikan
economy and the examples often used is Sitka was devastated by the
mill closure here. I want to read you some quotes from newspaper
articles over the past two years, putting the big lie on that to
rest. These are mostly statements from the city, itself. The
first one is starting eight months after the APC mill closed,
housing in Sitka was still tight. Quote, `Very little change in
the local real estate market since the Alaska Pulp Corporation mill
announced a year ago that it would close the Sitka mill. Prices of
residential and commercial property are holding steady or climbing.
The number of houses for sale is still limited and those that do go
on the market are selling quickly.' Unquote. That's from a July
7 Sitka Sentinel article. `One year after the mill closed, the
Sitka reserve fund was up. The balance sheet for the general fund
as of September 30, 1994, reflects a reserve of $8.74 million, up
from $7.45 million a year ago.' Unquote. That's from a December
21 Sitka Sentinel article. In December 1994, Sitka's electric and
water rates are among the lowest in the state. Quote. `A state
survey of 22 Alaskan cities shows Sitka has the lowest electrical
rates and one of the lowest water rates.' Unquote. That's from a
February 24, 1995, Sitka Sentinel article. In a report from
Moody's Investor Services prepared by the city of Sitka, dated
March 6, 1995, it was shown among other things that the average
sale price for a single family home continued to rise from 1990 as
single family housing starts for 1994 increased from approximately
25 in 1993 to approximately 40 in 1994 and that growth business
sales continued to increase for every year from 1989 to 1994. This
was from the presentations of Moody's Investor Services dated March
6, 1995. This report also indicated long-term growth in the health
care, tourism and education industry in Sitka. I would like to say
again that I'm very much against this contract and the economy of
Sitka proves that we can do fine without pulp mills."
CO-CHAIRMAN WILLIAMS asked if there was anyone in Sitka wishing to
testify who was for the resolution. Inasmuch as there was no one
to testify in support of the resolution, he called on William
Miller to present his testimony.
Number 956
WILLIAM MILLER testified from Sitka in opposition to CS HJR 64. He
stated, "I further believe that Southeast Alaska communities would
build (indisc.) economically if the KPC contracts were cancelled.
I make that claim on three reasons. Number one, the small,
locally-owned timber operations pay more for Tongass timber. Look
at the difference between what Buhler pays and what KPC pays per
foot. Today, the very presence of KPC is keeping timber prices
lower than it should be. Number two, the 1993 Reeve Brothers
lawsuit against KPC and APC never established the impact of the law
of the 103 local timber operators on local communities, and it
should have. Locally-owned timber businesses mean that more
profits stay locally. In addition, more subcontract business is
done locally. Number three, our Tongass, our trees, are like stock
on Wall Street. As they grow in the forest, they yield up
dividends. Those dividends are in the form of subsistence,
tourism, fish and wildlife habitat. While the rest of the world
are liquidating their trees, ours are growing in value. And
because of it, our tourism is growing in value almost daily."
Number 1036
MR. MILLER continued, "The heart of our forest has already been cut
out. Two hundred year old second growth does not have the value of
old growth; we'll never it back. So, let's not be in a rush to cut
what is left, especially under the conditions of a long-term
contract. We have a gold mine here - don't sell it until we really
need to eat. Don't sell off our resources while our dividends are
growing in value for the future. We should be seeking a wood
product industry that will respect our lifestyle, based on local
ownership of small maximum value-added businesses."
Number 1069
MR. MILLER further stated, "Furthermore, look at the language of
this bill. Are our legislators made of logic or pom-pom
cheerleaders for a KPC logging effort. How many legislators know
what the Forest Service definition of productive or commercial
forest is? How many legislators know that high volume old growth
forest is the name of the real productive or commercial forest in
Southeast Alaska and that the majority of what the Forest Service
calls productive forest is glorified shrubbery. Do legislators
know that half of the real productive forest, the high volume old
growth forest, has already been cut? Republican President Ike
Eisenhower, warned us not to plunder for our own ease and
convenience the precious resources of tomorrow and do not risk the
loss of our children's political and spiritual heritage. What
President Eisenhower was asking us to do is not easy, but then
choosing another road rather than the path of ease and convenience
rarely is easy. It requires both effort and strength. It
(indisc.) sell off our resources for our own short-term comfort.
It is wiser to use them conservatively. Begin doing so by urging
Congress and the Administration to cancel the KPC contract."
CO-CHAIRMAN WILLIAMS stated the committee would now hear testimony
from Thorne Bay.
Number 1165
DESIREE JANZEN testified via teleconference from Thorne Bay on
behalf of H & L Salvage, Inc. She said, "We are a small business
here in Southeast and I'm here in support of the extension of the
contract. Our company buys red cedar logs from them and we depend
on this log source as part of our overall operation. There is more
than one business in our community that also depends on KPC for
their logs. If they were to shut down their operations here, it
could drive away small businesses like ours. Without KPC in our
community, the residents will all suffer. Again, I offer our
support for the extended continuation of the contract for KPC.
Thank you for this opportunity to speak."
Number 1213
KELLY L. GERRITS testified from Thorne Bay she is not anybody
important; just a wife, mother and KPC employee. She said, "I'm
trying desperately to hold on to something I truly believe in. I
wouldn't be a fifth generation logger if our timber wasn't a
renewable resource. I'm not going to give a lot of facts and
figures; I'm just going to speak from the heart. I support the 15-
year extension because I support my livelihood and my heritage.
This has been an honest profession; one that many of my generation
have supported themselves with and raised good American families.
In my lifetime, I have witnessed many positive improvements in the
timber industry. No matter what one may think, we do need the
industry and I am only asking for KPC and others to be able to
continue so we can continue to be honest, hard working timber
employees in a renewable resource. Thank you."
CO-CHAIRMAN WILLIAMS said the committee would next hear testimony
from Petersburg.
Number 1271
BECKY KNIGHT testified from Petersburg that she is a 21-year
resident of Petersburg, a former forester for the U.S. Forest
Service, a wife and a mother of two young sons. She said, "My
family makes their living entirely from commercial fishing; a
substantial portion of which is harvested in Southeast Alaska. I
believe I have a good working knowledge of the land management
decisions affecting the Tongass and my livelihood. I am adamantly
opposed to any extension of KPC's 15-year long-term contract and I
am outraged that such a proposal could even be considered. As you
know, KPC is a convicted felon for intentionally dumping toxic
sludge into Ketchikan's Ward Cove. The EPA has listed KPC one of
the worst water polluters in the Pacific Northwest, yet KPC
continues to operate despite the fact that it cannot meet safe air
and water quality standards. In 1983, KPC was found guilty of
anti-trust violations, including price fixing, collusive bidding
and forcing independent timber operators out of business. And
according to the Forest Service, cheated the American public out of
$60 million to $80 million."
MS. KNIGHT continued, "I believe that we need to begin now to plan
for an orderly transition for KPC to convert to a high value-added,
sustainable industry and not grant these corporate bad boys a hand
out. Speaking of sustainable, as a good friend of mine said to me
last night, `There will be no forest management if KPC is granted
an extension.' This very fact is quite apparent in documents
prepared for KPC contract offering. For instance, I had the
opportunity recently to review a draft Environment Impact Statement
(EIS) for local timber sales called the (indisc.) Cape Fanshaw
timber sale. The (indisc.) area is important to local residents,
including fishermen, crabbers, shrimpers, seiners, trollers, long-
liners, as well as other charter boat operators in recreation.
Also, the timber volume intended to be logged from areas intended
to satisfy KPC's long-term contract. KPC's unsustainable logging
practices have forced them to areas of the Tongass formerly off
limits to the company including the (indisc.) areas. The Forest
Service was forced to ignore the needs of these other users of the
sale area and their relentless pursuit to satisfy the (indisc.)
appetite of an out-of-control pulp mill. Although they could have
offered less volume and made everyone happy, they ignored all the
other users. As I reviewed the EIS, I was struck by the numerous
references to federal and state laws and Forest Service agency
directions that would be violated, and the Forest Service mad-
scramble to satisfy KPC's contract. For instance, and these things
are admitted in the draft EIS and are there for the reviewer to
find, the main log dump at (indisc.) is located directly adjacent
to an anadromous fish stream in direct violation of Alaska law of
transfer facility siting guidelines. guidelines. Number 2, water
quality standards are expected to be exceeded in the (indisc.)
water shed and that's the main water shed in the (indisc.) area as
a result of proposed road construction and logging in the water
shed."
CO-CHAIRMAN WILLIAMS advised Ms. Knight of the time limit for
testimony.
MS. KNIGHT continued, "They admit numerous violations of federal
and state law. They arbitrarily expanded the sale area and sale
volume to satisfy KPC's contract commitments and we urge the state
and the federal government not to award these felons anymore
volume. Thank you."
Number 1474
JAY PRITCHETT testified from Petersburg that he is adamantly
opposed to the extension of KPC's contract. He said, "First of
all, the 50-year contracts were a mistake and I don't think we need
to modify those and amplify our mistakes of the past. Second,
they've been extremely, as Becky pointed out, extremely reluctant
stewards of the environment which we all share here in Southeast
Alaska. Third, we have a state and a federal government that is
trying to scale back and not pay subsidies and I don't see this as
anything but a subsidy for a huge corporation and as long as we're
on that, the fourth reason is that the company theoretically needs
more time to make more money to pay for health and environmental
standards issue put through earlier when the parent corporation had
made record profits that were virtually unheard of. In fact,
unheard of in the industry. So, once again I'm adamantly opposed.
I see no reason in the world to extend the contract at this time.
Let's come back to earth and have everybody and all different types
of users compete on an even basis. The Tongass isn't just timber
and it isn't just a pulp mill in Ketchikan."
CO-CHAIRMAN WILLIAMS thanked Mr. Pritchett for his testimony and
said the committee would next hear testimony from Coffman Cove.
Number 1568
PAT ROWLAND, President, Southeast Island School District School
Board (SISD), testified via teleconference from Coffman Cove in
support of CS HJR 64. She said, "When I was elected to the board
in 1993, SISD had 17 schools in correspondence; this year we have
11 schools in correspondence. Next year we will lose another
school. Our board has made difficult decisions due to the fact
that the formula for funding rural education in our state depends
on the number of school sites and the number of students.
(Indisc.) all the revenue, the board's goal is to provide the best
possible education for all of our students. The only glimmer of
hope we've had the past few years is timber receipts. But now as
we receive (indisc.) to balance our district's budget, half full
school buildings due to relocation of logging operations have made
it possible to bring technology to our classrooms. The amount we
receive from timber receipts depends on the amount of logging in
the national forest in our state. Our board is comprised of five
elected members representing the various communities in our
district. (Indisc.) communities dependent on the use of our
natural resources. Our families earn their living by fishing,
logging, government, construction and tourism. Our diverse group
has found common ground from their common goal as trustees of the
education of our children. We respect each others as individuals
and have learned to value our diversity."
Number 1660
MS. ROWLAND continued, "In listening to the testimony yesterday, I
began to realize the evolution that has taken place in the last 21
years that I've lived in Southeast Alaska. The changes have
(indisc.) changed industry, communities, communications and
schools. In some cases the transition has been painful while in
others the (indisc.) has been denied. The surviving timber
industry has undergone a substantial transformation. Much of the
testimony we have heard was about the past. Logging camps have
evolved into second class cities, some first class cities have
revenue problems after closure of their main industry and others
are struggling not to follow. Communications have gone from marine
radio to telephone and television program is available in almost
every location. This teleconference is possible. Southeast Island
School District schools have opened, educated children and
(indisc.) as required from Forest Service directives. I refer you
to the survey provided by South East Alaska Resource Center
extension mentioned by John Antonen during his testimony yesterday.
I accompanied John and Sitka's School District Superintendent on
the trip to D.C. to deliver the survey to the Forest Service and
our congressional delegation. Our request for accountability from
the Forest Service for the cost incurred from expenses that
removing schools as required by contract and funding for further
educational opportunities for dislocated loggers fell on deaf ears.
I hope you will take into consideration the testimony of the mayors
of Southeast Alaska and all the others who testified for this
resolution. This resolution after all is part of a process to show
the federal government that backing of some of our state residents,
legislators and Governor for an important part of Southeast
Alaska's economy."
CO-CHAIRMAN WILLIAMS asked Ms. Rowland to wrap up her testimony.
MS. ROWLAND continued, "All the players have diversified and
complied to all the directives, the staff have out-layed the time
and dollars, our school district included. With the assurance of
the continuance (indisc.) and continue to provide quality education
to all of our students in rural areas, we will be able to provide
them a technological expertise to meet the ever changing demands in
this ever changing world. The students believe our schools are
still necessary to seek future schooling or enter the work force in
their community. They will not be faced with the problems facing
the workers of Wrangell and Sitka, re-training after a lifetime of
contributing to their jobs in their communities. Our first goal of
implementing technology has just started. Extension of KPC's long-
term contract will provide the needed security and the telephone
services serving our communities to expand and install all
necessary improvements to take advantage of the information
highway. Our board's goal of implementing technology has just
started. With the long-term contract, people can go to (indisc.)
for expanded telecommunications is only one example."
Number 1828
DAN HAYES, JR., testified from Coffman Cove that he has worked for
KPC and indirectly worked for KPC for the last 20 years. He said,
"I own property here on Prince of Wales Island and I am for this
extension - the 15-year extension. There's lots of logs to be
logged yet and I live here and if KPC doesn't get that, there's
$200 million that they're putting in to the mill to clean the mill
up even further than what's already happened. So yes, I am for the
15-year contract extension. Thank you."
Number 1880
JEFF MEUCCI, Mayor, City of Petersburg, testified via
teleconference from Craig that the City of Petersburg will be
talking about a resolution supporting the contract extension for
KPC at the next council meeting, April 15. He did not have an
inclination as to which way the resolution would go. He said the
rest of his comments would be based on his personal opinion and not
a reflection of the city of Petersburg or the city council. He
remarked, "As a commercial fisherman, I am not guaranteed a
contract to harvest fish. I think it's very important that we make
the industry as competitive as possible. I think it's important
that the jobs generated by the timber industry are Alaska jobs and
not jobs that are sent out to the Lower 48. I think it's important
that the jobs in Alaska be the most efficient use of the timber in
Alaska, making sure that the processing is done in Alaska, not in
the Lower 48 or Japan."
CO-CHAIRMAN WILLIAMS announced the committee would hear testimony
from Juneau.
Number 2005
IRENE ALEXAKOS informed people listening by teleconference of a
display which listed KPC contributions to Southeast Alaska. She
said, "In a nutshell it lists the payroll, direct jobs and taxes
they pay. I've put before the committee here, another picture that
represents a side that many have glossed over - some of the many
laws that KPC has broken. In most cases, they are violations that
have been knowing and repeated for years. Yesterday, the Vice
Chair gave the impression that there need not be much concern for
KPC breaking laws in the future because if someone breaks the law,
they get caught and are taken to court. Surely this is grossly
simplistic. We all know that only a fraction of criminal and civil
violations are caught and somehow brought to justice."
Number 2051
MS. ALEXAKOS continued, "One point in the resolution is that KPC
faces an uncertain future, not of its own making, as a result of
the continuing log shortage created by the failure of the Forest
Service. This is a curious statement to me. It is the timber
industry that cuts and has been cutting for decades in the Tongass.
Logically, there is less available. Illinois was once forested,
too. It must be recognized there are limits to everything. It is
the Forest Service who has provided most of the timber base to KPC
at prices far below those offered competitors. KPC has had the
benefit of a situation that no other mill in the U.S. has had. Why
do they deserve this unique treatment? Much of the emphasis,
understandably, in this resolution is on jobs. Certainly,
employment is crucial to individuals, communities and a healthy
economy. But to go as far as to say there would be cataclysmic
impact, as you say Mr. Chairman, is a gross exaggeration. I think
it would be far more productive for politicians and individuals to
see that everyone is capable of finding employment and working in
other sectors. Indeed, when legislators leave each May, you often
go to resume entirely different careers."
Number 2107
MS. ALEXAKOS further stated, "As a last point, I'd like to call
your attention to this report. At the beginning of each session,
the Department of Environmental Conservation is required to submit
a report to the legislature summarizing several aspects of the Oil
& Hazardous Substance Release and Response Fund. This report
includes dollars spent by the department, the amount and source of
funding, monies recovered by personal services, contracts
purchases, and summaries of response activities. At the end of the
report is a list of sites in DEC's contaminated sites database and
the priority classification of each. The primary tool used by ADEC
for prioritizing contaminating sites is the Alaska Hazard Ranking
Model. This model provides an indication of the relative threat to
public health in the environmental by evaluating several exposure
pathways. It's not an absolute measure, but it does provide a
general assessment of the threats a site may pose. As such, DEC
places sites into high, medium and low priorities."
CO-CHAIRMAN WILLIAMS reminded Ms. Alexakos of the time limit for
testimony.
MS. ALEXAKOS commented, "Let me just say that of 2,761 sites in the
state, KPC was ranked number 2. As of last week, DEC had 2,761 in
this database. Sites with a score of greater than 40 are
considered to be high priority. KPC has a score of 337. This is
the second highest score computed of over 2,000 contaminated sites
in the state. This is now and this is today. Before the
legislature passes such a resolution, I believe this issue must not
only be addressed, it must be resolved."
Number 2213
KATHY COGHILL, Representative, Juneau Chapter, National Audabon
Society, presented their position on the proposal to extend
Ketchikan Pulp Company's long-term contract for another 15 years.
She said, "Although we support the presence of a timber industry in
Southeast Alaska, we are opposed to this proposal for the following
reasons: 1) We are no longer living under the same conditions
which led to signing the original contract in 1954. Our economy
here is healthy now and growing as we head into the twenty-first
century; 2) extending the contract is not a good way to create or
preserve jobs. If more jobs are desired, the emphasis should be on
creating a better environment for small timber contractors and
fostering value-added operations. Extending special favors to KPC
will only hinder any positive movement in this direction; 3) the
Tongass National Forest will release its latest revision of the
Tongass Land Management Plan within the next month. As a part of
this process, a panel of fishery experts were asked to evaluate the
impacts of the alternative plans on the health and productivity of
salmon. Their consistent response was that roads are a serious
cause of damage to fish habitat and that as more miles of road are
constructed, the danger to fish increases. We didn't know this 40
years ago; we do know it now. How can we continue to operate as if
roads are inherently good and award KPC credits for creating them.
Over the last 40 years we have learned that logging roads are more
of a burden than an asset. If anything, KPC should be paying a
penalty for building roads that damage fishermen's livelihoods and
cost the Forest Service millions of dollars to maintain; 4) the
timber industry is heavily subsidized in Southeast Alaska and the
federal government can no longer afford this expense, particularly
when you consider that we are paying three times for the subsidy.
First we pay with road credits, virtually giving away the trees in
exchange for new roads. Then we pay in lost opportunity for
tourism, fishing, subsistence and recreation. And finally, we pay
for restoration when logging roads get old and begin to fail."
MS. COGHILL continued, "KPC has not been a good corporate neighbor.
In 1995, KPC plead guilty to 14 criminal violations for
intentionally polluting the waters of Southeast. In closing, I
want to re-emphasize that times have changed since 1954. The
sweetheart deal that KPC has been enjoying since then is no longer
appropriate. KPC has repeatedly proven itself irresponsible,
negligent and unworthy of special favors. Extending the 50-year
timber contract is not in the best interest of Alaskans and in
fact, it would do them a great disservice. Thank you."
CO-CHAIRMAN WILLIAMS remarked he would continue taking testimony
from Ketchikan at this time.
Number 2343
TROY OLIVADOTI testified via teleconference that he is a resident
of Ketchikan and strongly supports the 15-year contract extension
for KPC. He stated, "I have seen the devastation caused by the
collapse of the wood products industry in Oregon and no one should
wish to same thing to happen here in Southeast Alaska. KPC needs
some security of a guaranteed fiber source so it can make major
investments into ECF (indisc.) with confidence. I urge the state
to get behind the contract extension soon so KPC can move forward
and invest in the future. Thank you very much."
Number 2381
FRED ATHORP testified via teleconference in opposition to CS HJR
64. He said, "For four years, I've been hearing that Ketchikan
Pulp Company's timber resource is renewable on a 50-year renewable
basis. My income comes from commercial fishing and the tourist
industry; both negatively impacted by the timber industry as run by
Louisiana Pacific who feels that a tree has no value unless it's
cut down and they have been a very poor corporate citizen, in my
opinion. It is anticipated by the Forest Service that 90 percent
of the coho habitat will be destroyed by the timber industry by the
year 2000. We are keeping going with our own resources -
hatcheries. Thank you very much."
CO-CHAIRMAN WILLIAMS said the committee would hear testimony from
Sitka at this time.
Number 2435
ROBERT ELLIS testified from Sitka that he is adamantly against the
joint resolution asking for an extension of KPC's contract for many
reasons, but would touch on just a couple. He said, "I would like
to say that I do agree with the sponsor statement - that portion of
it that says that we have a healthy environment in Southeast. So
I question the science of the statement made in the third Whereas
in the resolution which states that `a significant portion of the
Tongass consists of a dead, dying and over-mature....
TAPE 96-50, SIDE B
Number 011
MR. ELLIS continued... "many problems with the resolution, my major
one is that the long-term contracts, as we have seen them, have
made it impossible for the Forest Service to use good science in
managing the Tongass. We have been told again and again by the
Forest Service that the contracts are forcing the Forest Service to
ignore good multiple use management. And what this resolution is
doing is re-enforcing this poor management on the Forest Service.
I would like to comment that this year in Sitka, our herring
fishery has been able to fish in Silver Bay in an area that has
been closed to them by the pollution from the pulp mill since the
pulp mill started. This year the herring fishery is taking
millions of dollars worth of fish from an area that the pulp mill
had precluded from their use. I think this is just one more aspect
of how Sitka is escaping from the illness of being a pulp mill
town. Again, I would like to say that I am against this
resolution. Thank you."
Number 071
FLORIAN SEVER testified from Sitka in opposition to CS HJR 64. He
said, "I'm just simply against any extension because just like
Alaska Pulp Corporation here in Sitka, KPC broke its union and now
there's an open shop there. Both of these pulp mills have a
history of holding not only their workers but their home
communities as economic hostages. KPC is a proven violator of just
about every law or regulation that ever applied to them. They
pleaded guilty to criminal violations of the Clean Water Act and
then almost at the same time they fired and violated the
constitutional rights of one of their own workers for cooperating
with the U.S. Department of Justice and the U.S. EPA investigations
of the same violations. And as I said earlier, they broke their
union at the KPC mill many years ago and there's an open shop there
now and they have been holding their workers as economic hostages."
MR. SEVER continued, "KPC's request for a contract extension is
just a move to set up the federal government for a lawsuit similar
to the one APC has filed for $1 million. That suit was filed
because there was not enough timber available to support the APC
pulp mill and I think it's a proven fact that there is not enough
timber -- there's a big worry in the offices in the U.S. Forest
Service as to whether they'll be able to even fulfill the terms of
KPC's 50-year contract, so a 15-year extension would be just not
viable. The Tongass can't sustain and support and subsidize this
mill in Ketchikan any longer. Instead of an extension, it should
be shut down. Thank you."
CO-CHAIRMAN WILLIAMS asked if there was anyone else in Craig
wishing to testify on CS HJR 64.
Number 168
MICHAEL KEMPNICH testified via teleconference that he is an
employee of the city of Craig. He said, "Some of the comments I've
heard in the last few minutes, to me appear to be (indisc.). I'm
not for or against KPC, but what I'm finding from watching this
from the outside, is that there's a lot of (indisc.) on both sides
and it isn't getting anybody anywhere. I heard one comment that a
guy made a couple minutes ago that by the year 2000, 90 percent of
the coho habitat in Southeast would be wiped out. That means that
over the last 40 years a good percentage of the coho habitat has
already been wiped out, but yet two years ago we had a record run.
I agree that there's some problems with KPC and the way they do
some things but to me to believe the comment about the cohos is
obviously not true. And I have a hard time accepting the
environmentalists' views when they state figures and facts like
that that are just obviously not true. I would just wish that both
sides would work together and make their positions based on facts
and work together rather than throwing (indisc.) around. I'm not
for or against it, I just hope that everybody can work together and
come up with the best solutions for the whole timber industry.
Thank you."
CO-CHAIRMAN WILLIAMS announced he would again take testimony from
Ketchikan.
Number 243
BARRY HOGARTY, Employee, Ketchikan Pulp Company, testified from
Ketchikan that she works in the environmental department. She
said, "I've been regulator of the industry up until just recently
so I have kind of a unique perspective, I think, on some of the
things that have been said here today. I really object when I hear
Ketchikan Pulp Company being referred to as convicted felons.
(Indisc.) civil and criminal complaints, yes, but I know for a fact
that I'm not working with convicted felons. Regarding the
contaminated sites ranking - that was in part based on our own
forthrightness with residents in the area around the mill, placing
protection on their drinking water systems even though there had
been no demonstrated effect from any of the emissions from the mill
directly in the drinking water. So we're going ahead and
installing protections for people there based on perception and the
chance that there might be some contamination in their drinking
water. It's not based on any actual science and there weren't many
numbers used in that ranking relative to that. And I really object
to that. That was just basically a DEC in-house ranking that
really bears no weight when it comes to overall compliance."
Number 321
MS. HOGARTY continued, "The mill has made improvements over the
last 40 years that have made for cleaner air and cleaner water
around the mill. I think the mill is a good neighbor.
Improvements in logging practices in the Tongass National Forest
have been tremendous over the last 40 years and KPC is a major
player in the economy here in Ketchikan. And I personally believe
that without KPC -- an industry like KPC here in the economic
base, we're going to have a poorer environment in many ways because
there's not going to be the tax base to support what I believe is
really the problem here and with lack of proper sewage and lack of
proper drinking water, treatment and we also have solid waste
problems. Without the 15-year extension, I don't believe we can
amortize the environmental improvements that need to be made at the
mill. Thank you."
Number 369
MARGARET CLABBY testified via teleconference from Ketchikan that,
"Yesterday, when I listened to the committee, there seemed to be
some misunderstanding about the seriousness of the toxic and
hazardous air and water discharges at KPC. Someone said if there
were a problem wouldn't EPA or DEC be saying so. They've said so
repeatedly; it's not just (indisc.). Local people have started
going through the records of what's going on at KPC and it's daily
violations consistently throughout the year here, right up to
current." She read from the September 15, 1995, the United States
District Court, Department of Justice Attorney, "The United States
recognizes that KPC pulp mill operation has seriously degraded
water quality in the vicinity of Ward Cove and that KPC has a
checkered compliance history. Precisely for those reasons that
(indisc.) requires KPC to pay a civil penalty of $3.11 million to
settle claims regarding test violations." She remarked, "This is
the largest civil penalty ever imposed on any of the operating
(indisc.). KPC has consistently been one of the major violators
and one of the major polluters. Part of it is not their fault in
that the kind of mill that they have is very problematic for both
air and water pollution. Part of it is repeatedly (indisc.)
knowing violation of federal water for (indisc.) seriously
inefficient monitoring. Serious violations of worker safety laws
again and again and again and this is documented things that we see
in the record. (Indisc.) hemlock mill that's being cited for
violations of air quality tests is a real problem."
Number 454
MS. CLABBY further stated, "One of my concerns is that if KPC wants
a contract extension that they could really request it and the
(indisc.) could clearly see what it is they're asking for it. It's
really the terms that are important. I'm not necessarily against
or for a contract extension for KPC. If the terms were right, I
could easily be supporting it. But I need to see what the terms
are. Exclusive rights to harvest over three billion board feet of
timber (indisc.) the year 2005 (indisc.) is extremely valuable.
This is the same amount as APC harvested during their entire
operation. The terms are important because we want a mandate for
a certain number of jobs for the people in this community,
compliance with the law, that sort of thing. It's very, very
important. What's really going on is that KPC wants to change its
current contract and I talked to Troy Rheinhart and Ralph Lewis and
(indisc.) and that's the reality and that's what we should be
talking about. They want to get rid of the onerous termination
clause in this current contract. Why do they want to get rid of
that? Because it says that the Forest Service can terminate their
contract if operations would cause serious environmental damage.
They saw a real problem here and they want to get rid of that
clause. KPC wants many other contract changes. They want to do
away with the comparability (indisc.). All the things that give
the public security for some of the environmental things that do
make okay for KPC to be here."
CO-CHAIRMAN WILLIAMS commented he would now hear testimony from
Juneau.
Number 553
DICK MYREN testified in opposition to CS HJR 64. He said, "I am a
retired fisheries resource biologist. I object to the third
Whereas in the resolution regarding the old growth dying and over-
mature timber. I have submitted a paper I wrote to Governor
Knowles. It's 17 pages long and his letter of response is on the
last page. On page 3 or 4, there's a description of why old growth
dying and dead timber is valuable along streams because it protects
fish habitat. Frank Murkowski recently stated -- gave a figure in
the paper that the amount of forest cut per year was .008; a very
tiny fraction. Now that's the amount of timber of the forest cut
per year. Well that .008 fraction may be small, but if you
consider an astronaut for example, looking down on the earth from
afar and noting the thin (indisc.) of the atmosphere and humans and
the other life, and seeing that that is a tiny fraction of the
total mass of the earth, I suspect that tiny fraction would be even
smaller than .008 of the ratio of earth to the habitat. The idea
that because we're only logging a small fraction of the forest
along the stream that we have no affects, is really wrong. I'd
like you people to consider we do have a serious adverse logging
effect coming out of this because of our past logging activities
and they will increase intensively. The documents I submitted to
you will show that, I believe. Thank you very much."
Number 659
KARLA HART, Vice President, Alaska Wilderness Recreation & Tourism
Association, testified this organization represents over 300
members; the majority of which are small Alaska owned tourism
businesses. She said, "To give you an example, I just pulled from
my office brochures some of the many businesses which we represent.
These are businesses ranging from small bed and breakfasts all the
way through fairly large operations which employ upwards of 60 or
100 people. So it's a wide range of businesses. They operate
throughout Alaska; we have an extensive membership throughout
Southeast Alaska. The nature based recreation and tourism industry
in Southeast Alaska does not have any good economic figures on the
impact of our industry. The industry is new, relatively speaking,
and very rapidly changing in dynamic. It's one of the fastest
growing industries in Alaska now. Decisions that are made with
respect to the timber industry have long-term consequences for the
growth of our industry. Our industry consists of small businesses,
family owned businesses unlike a large organization such as
Ketchikan Pulp Company. You can go out and buy a charter boat and
get into the wilderness based tourism business whether it's a sport
fishing business or a small hunting business or a wildlife watching
business. It offers people a lifestyle choice; it offers people an
easy entry into a business that gives them a high quality of life.
Maybe not measured only in dollars, but also in lifestyle; the way
that Alaskans like to live. Work hard for part of the year and
then have time to go out and do your subsistence hunting and
fishing, to recreate, to just enjoy chopping wood and living at
home in the winter. It's a type of business that more and more
Alaskans are getting into from all different industries, changing
into tourism."
MS. HART continued, "We strongly oppose the 15-year contract
extension resolution because in 15 years it's inconceivable what
our industry might be like if we're given the opportunity to
compete on a level playing field. That contract would preclude
some of the growth of our industry. Thank you."
Number 764
CO-CHAIRMAN WILLIAMS asked Ms. Hart how much land they needed to
recreate on? He commented there are 17 million acres of land in
Southeast Alaska and most of it is tied up now. The amount of land
available for logging companies to log on is 1.7 million acres.
MS. HART responded, "I think it's obvious that you can only cut
trees on forested lands and as we all know the majority of the
Tongass lands are not forested. So, the bays and coves that our
businesses depend on to provide the forest related activities are
really quite limited. We have done a study of the tourism bays and
coastlines since most of our activity takes place along the coast,
and in Alaska, a recent study showed that on Prince of Wales Island
of 114 of 187 of the anchorages that (indisc.) could use have been
impaired."
CO-CHAIRMAN WILLIAMS said we're talking about 15 million acres that
are open for recreation and tourism.
Number 823
MICHAEL SALLEE testified from Sitka that he is a deck hand on a
long line boat, (indisc.) commercially and operate a one-man
sawmill. He said, "I'm not adamantly for or against renewing the
long-term contract. I do think such an action would require a
radical change in timber harvest practices. Such a change is not
evident at all in HJR 64. HJR 64 does not address the lack of
diversity within the Southeast Alaska timber industry. The whole
industry is very rigid and based mainly upon large scale
operations. The U.S. Forest Service lays out sales requiring roads
to be built over miles of roads, loggers move in with chain saws
and steel power yarders, the timber is clearcut, hustled off to the
pulp mills, sawmills or round log export traders and is gone;
quickly liquidated. This is not industrial diversity. (Indisc.)
diversity gets exported in round logs and cants for someone else to
process. The problem is the scale of the operations, I think most
clearly pointed out by the mayor of Wrangell yesterday. Wrangell
workers are proud of their production of 45,000 board feet per day.
The Ketchikan sawmill at Ward Cove (indisc.) 25,000 board feet per
ship; 25,000 board feet is 6 months or more of production for my
one-man operation. From my perspective a mill that turns out
25,000 board feet per day and employs 60 people is going through
their annual share in about a month. You cannot keep adding to the
mechanization or the number of players without changing the whole
game. (Note: This portion of testimony is indiscernible).
MR. SALLEE continued, "As for the abundance of deer and fish, the
deer are only abundant because so much land on Prince of Wales is
presently in a clearcut state and the recent winter snows have not
been deep. The U.S. Forest Service environmental impact statements
all warn that subsistence hunting will be (indisc.). HJR 64 does
not speed up (indisc.) or add any timber to the timber base or show
me any new innovative value-added techniques. It just prolongs an
already egregious situation in which the status quo timber
processing in the Tongass falls far behind timber extraction to the
detriment of other resources. I'm also a part of the timber users
coalition in Ketchikan and that coalition wants to see the
relatively untouched (indisc.) does not want to see it turned into
a (indisc.) tree plantation."
Number 975
HELEN DRURY testified via teleconference from Sitka and wondered
how any legislator can face his/her constituents and support the
renewal of the Ketchikan Pulp Company contract. She said, "For
years this company has been responsible for breaking laws through
their toxic water pollution, which has been extremely harmful for
(indisc.) number of citizens. In addition, they were found guilty
of monopolistic practices such as price fixing, collusive bidding,
putting timber companies out of business. The Forest Service has
found that anti-trust practices of KPC and the Alaska Pulp
Corporation have cheated the government out of $60 to $80 million.
With these questionable logging practices, I once again ask, how
can the legislature even consider extending this contract. The
enlightened thing to do is to replace KPC with those honest Alaskan
entrepreneurs and independent timber companies who will provide a
variety of value-added jobs which will support the idea of a
sustainable future for our Tongass forest."
CO-CHAIRMAN WILLIAMS noted he would again take testimony from the
Ketchikan teleconference site.
Number 1047
ELIZABETH WEST testified that she is a fairly new resident to
Ketchikan. She said, "I've spent most of my life in the Pacific
Northwest where in the last several years there has been a down
turn in the timber industry. I fully support the extension for KPC
because I saw what happened in Hoquiam and Aberdeen, Washington
which used to be a mill town. This community is on a beach, it's
in a highly recreated area, tourism did not replace those timber
dollars. The community of Aberdeen is approximately the same size
as Ketchikan. It has a few advantages in that they can drive to
Seattle, which is about an hour and 45 minute ride in order to get
to other work, unlike Ketchikan where residents here would have to
fly. When the mill in Aberdeen closed down, the community died.
There is still a community there, but I heard a recent speech by
the high school class valedictorian and she said more than 75
percent of her classmates are now on (indisc.) lunches; a
government supported effort in order to make sure that students
have at least one meal a day. And they often clear out the baskets
of crackers and bread in order to make sure they have a snack in
the afternoon. That's very sad. I don't want to see that happen
in Ketchikan. I moved here; my family's moved here; we want our
lives to be here. We would like to see KPC extended so that the
community is supported by the infrastructure that it brings and I
hope that this resolution is passed favorably and that Governor
Knowles will sign it. Thank you."
Number 1139
JUDY BEAR testified via teleconference from Ketchikan and said,
"Louisiana Pacific is in Ketchikan to make money. If the contract
had only been 20 years, Louisiana Pacific would have made millions
of dollars. If the contract lasts 100 years, Louisiana Pacific
will make billions of dollars. Louisiana Pacific is in Ketchikan
to make money. If it didn't, it would leave. The Tongass Forest
has been in Southeast for hundreds of thousands of years. The
Tongass Forest has been in Southeast long before we were a nation.
The Tongass was healthy long before mankind showed up in Southeast.
Louisiana Pacific wants more of the Tongass National Forest.
Louisiana Pacific wants more money. People want to breathe clean
air; people want to drink clean water. Time for a pop quiz. Why
did the Exxon Valdez have a single hull and single screw? It was
cheaper. Why doesn't LPK comply with EPA standards? It's cheaper
not to. When will super tankers have twin hulls and twin screws?
When people demand it. When will LPK clean up its act? When
people demand it. Our legislators can act in the best interest of
both LPK and the people of Alaska. Don't give a 15-year extension
until LPK makes good on all its past promises to give the people
what they have promised to their stockholders. Clean air, clean
water and quality of life at a reasonable profit. This would be a
win for both the investors and our Southeast community. Thank
you."
CO-CHAIRMAN WILLIAMS stated the committee would next hear testimony
from Juneau.
Number 1250
KAREN BRICKEN testified that she is opposed to the extension of the
contract. She said, "I really don't understand why we're even
considering it. I think that there have been so many violations
committed by this company. I think that a company that is not
following their guidelines, that is not following environmental
policy should not even be considered for an extension of a
contract. They are damaging the water and air quality. The
Tongass National Forest does not exist for a pulp mill. It is for
all creatures. I don't feel that the forest is even ours to throw
away - to destroy. And the impact of this company has been so
strong that it should, I really think that it should be shut down.
I think we've done enough damage that we need to stop now."
Number 1330
MIKE BETHERS, Owner, Fishing Charter Business, in Juneau requested
that his testimony be read into the record as follows: "Dear
Legislator, I was very disheartened to hear that the Legislative
Majority supported extending the KPC contract. This is one of the
two original contracts which did more damage to local public
resources, public land and future use of the land for public use
than any other deal ever cut by Congress. Furthermore, U.S.
taxpayers would have to spend tens of millions annually to
subsidize further destruction of our public lands in the Tongass.
Earlier logging done under contract has left many areas of southern
Southeast Alaska unsuitable for any other use. Subsistence
capability to the land is diminished as the U.S. Forest Service
reports that deer numbers are dropping due to logging impacts.
Also, it has been said by the U.S. Forest Service that Prince of
Wales Island will be closed to sport hunting about the year 2000
because of low deer numbers due to logging. This is a direct loss
of public use of a public resource on public lands. Many fish
streams in heavily logged areas no longer contain enough water in
mid-summer to provide access for spawning salmon or provide much
wet area for juvenile fish rearing. As for tourism, you've
obviously never tried to sell visitors a trip to an area that has
been logged. The most common question asked by potential visitors
is: Is the area natural or has it been logged? Visitors don't
come to see Southeast Alaska to see logging. They come to see wild
natural country. The can see miles of logged off country in the
Lower 48. That's why they like to come to Southeast because in
some areas it still has tall trees standing. My employment depends
on wild natural landscapes and strong dependable fish runs. I am
totally opposed to the extension of the KPC timber contract and
urge you to do the same. It's time for the logging industry to
scale back to a fraction of historical levels. That way a well
balanced multiple resource management approach to the public
resources on the Tongass will provide for all user groups. Once
again, I urge you to oppose the extension of any federal contract
on any public resources. Thank you."
CO-CHAIRMAN WILLIAMS noted there were two additional people in
Thorne Bay wishing to testify.
Number 1450
KATHY LIETZ testified from Thorne Bay and said, "I've been
listening quite closely to all the testimony and I'd just like to
say for those who didn't hear yesterday that Black Bear Cedar
employs approximately eight people. Our annual payroll is about a
quarter of a million dollars, our annual impact to the local
economy is a half million dollars per year. That may seem
insignificant to some of you in Sitka and Juneau where your
economies are so much greater than ours, but on Prince of Wales
Island that is a tremendous impact. If KPC leaves, we leave. All
of our employees, their spouses, their children; our community will
not exist. We support -- I heard the fishermen say that the
logging has been detrimental to their fishing, yet they have record
salmon runs in glut. The U.S.D.A. is currently buying up their
excess salmon. If the government can subsidize the fishermen
because they can't sell their fish, how about subsidizing the
loggers for not cutting our trees. Thanks."
Number 1559
SUSAN THOMPSON testified via teleconference from Thorne Bay that
she is a teacher in Thorne Bay and was representing herself and her
husband. She said, "Both my job and my husband's job are impacted
by a stable timber supply and by a stable community and I see the
effects every day of uncertain employment on families through their
children's behavior, through the children's inability to focus on
their work. And in my opinion, a stable income leads to family
stability and that can only benefit Thorne Bay and only benefit the
state in the long run. In my opinion also, Louisiana Pacific has
been a good neighbor in Thorne Bay and I don't have any reason to
believe this won't continue. They lend support to us in the form
of dollars and equipment and labor for community projects. They
have spent millions of dollars to upgrade their environmental
equipment to meet environmental standards. I think that needs to
be recognized and encouraged through contract extension and by
community commitment to the timber industry. And in my opinion,
Thorne Bay cannot survive without KPC except as the smallest
entity. We need to diversify the community and we are aware of
that. But we also need a stable, major employer here when we're
learning how to do it. And yes, I agree, LP is a profit making
company and I want to know when profit became a dirty word because
profit buys my groceries locally, profit has bought land for me in
Craig which is on Prince of Wales Island, it's bought a condo for
me in Ketchikan, it supports my family and a profit keeps my
neighbors in business. The timber industry dollars help support
Southeast. Timber is a sustainable and renewable resource and it's
my hope that this contract will be extended. Thank you."
CO-CHAIRMAN WILLIAMS announced the committee would hear testimony
from the Sitka teleconference site.
Number 1662
CLARICE JOHNSON testified from Sitka that she is strongly opposed
to the resolution to extend the KPC contract. She said, "Extending
a contract to a company with such a poor environmental record is
not in the best interest of most Alaskans. It is time to quit
subsidizing an industry which has been detrimental to other uses of
the forest. I have fished commercially for over 20 years and I
realize that my livelihood is dependent upon a healthy fish
habitat. Members of the legislature have supported slashing the
budget of the Habitat Division in Fish and Game. It is time for
you to recognize the importance of the many industries, recreation
and subsistence users who depend upon the remaining old growth
stands. The Forest Service is attempting to balance the needs of
these various groups in the Tongass Land Management Plan. It seems
wiser to wait for the alternatives to be released before writing a
resolution which includes a recommendation for an artificially high
volume of timber."
MS. JOHNSON continued, "And one more point. The record salmon runs
are a result of favorable ocean conditions and record hatchery
production. As the study by the Forest Service points out, when
the ocean conditions change, the health of the habitat become more
critical. Thank you."
Number 1755
PAGE ELSE testified from Sitka and stated, "I think the legislature
has a responsibility to assess and protect the resources of this
state for the best economic future for everyone. I think that this
resolution is sponsored out of sympathy for the timber industry
without an adequate understanding of the resources that are really
there. We've heard this lock up of the total acreage of the
Tongass - the 15 million acres, but what we have to understand is
that the money is made off only the old growth, the high volume
stands. There's very, very little of that left in the Tongass.
The historical harvest levels were well over the 35 million or
thousand board feet an acre figure (indisc.). And so much of that
is gone today (indisc.) that supports the wildlife habitat and the
fisheries that our future economy depends upon. You wouldn't give
a contract to a gold company to harvest 20 tons of gold if you knew
there were only 3 tons of gold in the ground and you needed it for
medical equipment. And these are numbers that you can get from the
Forest Service. Ask them how much of the total acreage of the
Tongass is rock and ice. Ask them how much volume six and seven is
left and then you need to make a decision about the best use of
that remaining resource."
MS. ELSE further stated, "What we need for KPC is not a contract
extension because that would build up false economic hope. You'd
have people moving into Ketchikan thinking they'd have a long-term
future in the timber industry and then it would run out. There
just isn't enough timber left that can economically be harvested.
So what we need is a transition plan to move to a smaller scale of
logging that's value added, that keeps the jobs and the profits in
Southeast Alaska. Furthermore, I think the people that do that
industry should be citizens that don't pollute, that don't degrade
the environment. KPC has a long history of environmental
violations of putting out toxic compounds into the water that are
going to cut into the value of our fisheries and our tourism and as
citizens of Alaska, we're going to be paying for the cost of that
for a long time into the future. Thank you."
CO-CHAIRMAN WILLIAMS said that because of the number of people
signed up to testify in Ketchikan, he would continue to take
testimony from there.
Number 1947
HEATHER MUENCH testified from Ketchikan stating, "I have lived in
Ketchikan for 17 years and my children are fed on timber dollars.
The strong, viable timber industry is very crucial to the Ketchikan
area. Part of keeping the timber industry strong is having a pulp
mill here. Over 2,900 direct and indirect jobs are created by the
timber industry in the Ketchikan area. Without KPC's presence,
about one-third of all jobs in Ketchikan will disappear. That's
teachers, doctors, grocery store clerks, everyone in town.
Everyone in the community will suffer negatively from the pulp mill
closure and I strongly urge the extension of the pulp mill contract
for the benefit of Ketchikan's economy and so that my children can
continue to live here. Thank you very much."
Number 2029
TOM FOUTS testified via teleconference from Ketchikan said his
testimony was in the form of a letter to Governor Knowles and
President Clinton as follows: "Dear President Clinton and Governor
Knowles. Enclosed please find a copy of Alaska HJR 64 as presented
the Alaska Legislature on March 25 and a greatly expanded work
draft presented to me during yesterday's invitational Resource
Committee hearing. It was impossible for anyone who had not seen
the revised work draft to comment on it intelligently and
thoughtfully. The amended resolution is extremely convoluted and
inflammatory like the 50-year agreement between LPK and the
national Forest Service, it no longer provides peace and harmony.
This irresponsible revised HJR 64 exacerbates the polarization
clause of the 50-year contract to the point where its (indisc.) by
LPK supporters may become real. We must make HJR 64 livable for
all U.S. citizens while bringing the LPK contract into the twenty-
first century. We all know that KPU has a dismal environmental
record, not just in Ketchikan but worldwide. The environmental
buck must stop here. We're here to consider a 15-year extension to
KPC presumably as an incentive for them to clean up the mess
they've been making for 40 years. KPC hasn't complied for 40
years. What guarantee does another 15-year extension provide?
More procrastination? More fines? More whining? Business as
usual? I actually have no problem with a 15-year extension to
KPC's contract provided there are guarantees on both sides of the
contract. KPC must ensure fair compensation for the loss to the
U.S. KPC must stay current with the environmental law. KPC must
provide at least the current number of jobs and a dignified pay
raise that will support family values. KPC must be in harmony with
the community providing quality timber to the region so the local
lumber yards aren't supplying timber from Canada, Idaho, etc. The
Forest Service must adhere to industry standards scaling methods
for both (indisc.) and pulp logs. This would relieve most of the
tension regarding quotas. KPC must help to diversify our economy
so that our wood (indisc.) are thrown into a panic when the mill
groans. Most of all, a good contract must stimulate competition so
that Southeastern Alaskans have the tools necessary to remain
competitive and financially solvent. Governor Knowles, thank you
for reserving judgment on HJR 64. Without modification it is truly
divisive and draconian. President Clinton, I urge you to sustain
the forest to protect the Tongass and its citizens. Deal with
Louisiana Pacific eye-to-eye. Southeast Alaska's economic basis is
changing. We have more people and less timber dependence. As
every job (indisc.), our population has been increasing. Property
values have increased dramatically. I am concerned with personal
safety and welfare of those Alaskans who oppose free rein for
Louisiana Pacific. Do we have to have a federal marshall here to
ensure the laws are applied evenly? It is ironic that I may be
forced to use my permanent fund provided by the legislature to
protect our country's resources from that legislature. Thank you."
Number 2274
ERIC MUENCH testified from Ketchikan in support of CS HJR 64. He
said, "We need that pulp mill here and I would like to emphasize
that the 40 years of logging we've had in Southeast has not hurt
the wildlife or the fish down here. Prince of Wales Island, for
example, where some of the most intense logging has taken place in
the last 40 years and right now there's more population there and
more hunter access than there was 34 years ago when I came to
Alaska and yet the bag limits on deer are the same as they were
then. As far as fish is concerned in the last ten years, most of
those years have been record or near record catches of pink and
chum salmon. Those are the fish that are both in contact with the
timber harvest because they more than any other fish occupy the
smaller streams found by the island system in Southeast. And those
are also the fish that are not produced by the hatcheries. As far
as the wages are concerned or as far as -- when it comes to
pollution, I notice that salmon still swim to Ward Cove to get up
Ward Creek to spawn and I notice that lichens which are very
pollution sensitive plants are still to be found in the trees right
across the highway from the pulp mill."
MR. MUENCH further stated, "When it comes to wages, we cannot
sacrifice the wages of the logging industry which depends on a mere
10 percent of the Tongass National Forest to try to build up the
forest industry which already has over 90 percent of the Tongass
and over 92 percent of Southeast to recreate in. The 8 to 12
months a year of good wages provided by the logging operations and
the mills are such as to maintain families at a good living
standard. The tourism industry, for the most part, provides three
to four months per year, mostly at minimum wage jobs. As far as
utilization goes, I work in timber management and when it comes to
the logging of domestic....
TAPE 96-51, SIDE A
Number 001
MR. MUENCH continued..."if we were forced to leave pulp logs in the
woods, they would be an additional barrier to deer to using the
clearcut and it is better to get full utilization while you're in
there."
Number 053
DALE ROGERS testified via teleconference from Ketchikan. He said,
"As a lifelong, born and raised in Ketchikan resident, I stand
opposed to the 15-year extension on logging in Southeastern Alaska
by Ketchikan Pulp Company. KPC has been a poor corporate neighbor
with the amount of pollution they've been causing and now they've
been paying for it and have to clean up their act, so to speak.
KPC knew when they started they had only 50 years on the timber
contracts and should have been planning for the end. Now they're
trying to get along and pay more into their system by cleaning up
their act. A lot of these employees at KPC and the timber industry
in this area came from other areas like Washington, Oregon and
California when their timber cutting slowed down, knowing all along
that Southeast Alaska had a limited amount of time in timber left
in the Southeast Alaska and KPC contracts. Those employees should
now start thinking about what they want to do or where they want to
go when and should the pulp mill close in 2004."
MR. ROGERS further stated, "I worked in the tourism industry the
last year and people coming here as tourists were horrified by the
clearcutting and pollution that's been going on in Southeast
Alaska. They've been led to believe that our area is pristine and
natural because of what their so-called "view corridor" where the
ships travel through Southeastern Alaska. But upon taking an
airplane flight - flightseeing - they're aghast to see what has
really happened. The sport fishing and tourism industries cannot
continue to grow if we cannot provide these people with the
experience they have come here for. Most areas in Southeastern
Alaska are now affected by the timber cutting and the coastlines of
most islands are within the view of clearcuts from the water. It's
not a pretty sight and tourists then again are aghast and I am too.
Let's try to leave it with a little more pristine looks and nature.
I believe that the timber industry can continue in Southeastern but
on a smaller scale with value-added timber jobs (indisc.) in favor
of giving KPC 15 years more in contracts. Thank you very much."
Number 243
CLIFF TARO, President, Southeast Stevedoring Corporation, testified
via teleconference from Ketchikan. He stated, "Having lived in
Ketchikan for over 44 years, we know what Ketchikan was like before
Ketchikan Pulp Company was built and operating. It was a small
fishing village with limited supplies, schools, transportation and
so forth. The promise of the contract for a 50-year timber supply
has not been maintained due to litigation, politics and so forth.
Thus Ketchikan Pulp Company should receive an extension of their
contract to fulfill their anticipated volume not provided in their
50 years of operation. Millions of dollars, above the $54 million
to build the mill, has been expended for environmental reasons
without any added benefits to the production of pulp or the income
to the stockholders with that amount expended. An extension will
give them some compensation. The Ketchikan community and area
needs the continuation of Ketchikan Pulp Company. It is the
backbone of Ketchikan's economic existence. And from a business
standpoint, to invest the necessary dollars for such a short time,
the return does not make fiscal sense without a 15-year extension
of the contract. Thank you."
Number 350
ROYCE RANNIGER testified from Ketchikan that he has listened to the
testimony regarding the pollution from the pulp mill and said, "I
worked at the mill from 1959 to 1977 and saw an awful lot of
changes (indisc.). You don't operate a pulp mill without a certain
amount of pollution just due to the situation. I'm in favor of the
extension from the standpoint that they're entering into a system
now of chlorine free operation and they're not even really positive
that it's going to work 100 percent, but they're putting up the
money. And when you put up the money, you've got to go to your
banker and the bankers say, `Well, where are you going to get the
timber?' You got to give them the timber so they can pay the bill
off. And these people talk about the pollution and stuff - they
should have been around in `55 when the mill started. Due to the
technology, it's changed and they changed with the laws and they
changed with the technology. I saw millions of dollars invested in
that mill - I was involved in a lot of it. I get awfully tired of
these `Johnny come lately' carpetbaggers telling us what in the
hell we're doing around here. That mill is a good neighbor."
MR. RANNIGER continued, "The last four years, I've been commercial
fishing. I own a business here in Ketchikan that relies on
tourism, that relies on the timber industry and it relies on
commercial fishing because they all do business with me. And this
community can live very well with every one of them. You know,
with regards to the fishing, look at my nephew (indisc.) again this
year, they're getting less money than last year per pound because
there's so damn much fish and I don't understand their game. If
people want to worry about the fishery, let's go out there and talk
to the trawlers out on the ocean that are causing some problems.
There's where a lot of your ecological problems come from."
Number 519
CO-CHAIRMAN WILLIAMS announced that because some of the committee
members would have to leave, he would continue to take testimony
from Ketchikan until 6:00 p.m. and then from the remaining two
people wishing to testify in Juneau.
Number 536
PHIL MCELROY testified from Ketchikan that he has been an employee
of the Ketchikan Pulp Company since 1970 with the exception of a
couple years. He said his grandparents came to Ketchikan in the
early `50s and his grandfather helped build the mill. Since that
time, three of his uncles, his father and brother and several
cousins worked for KPC. His father retired from there and his
daughter worked at the mill as a summer hire student. Ketchikan
Pulp Company is his life and has supported most of his family as
well as many of the hard working men and women of Ketchikan for
many years. He said KPC needs the 15-year extension to the timber
contract in order to survive. He thinks their legislators have
tried hard to get timber to the mill, but they need help. He asked
committee members to support the 15-year contract extension.
Number 677
KEITH STUMP, Attorney and Owner of a sailboat chartering business,
testified from Ketchikan that he is a 47-year resident of Alaska;
born and raised in Ketchikan. He said, "I think the amount of
false and misleading statements by some of the opponents of HJR 64
is really unfortunate. One particular example that galls me were
the false statements that lady claimed the fisheries have been
suffering by logging and road building. (Indisc.) filed on his
reports concluding there had been an adverse impact on fisheries,
I would refer to his qualitative impact not the quantitative.
Quantitative studies - studies that quantify any adverse impact of
logging on salmon production simply don't support a conclusion that
timber harvesting and road building has had any significant or
measurable impact on the natural fish production in Southeast
Alaska. If timber harvesting and road construction had an adverse
impact, you'd expect to see smaller fish returns in streams of
heavily logged areas. This is simply not so. You can see for
yourself if you go out and view these salmon returns in the Harris
River in the (indisc.) Valley on Prince of Wales Island, one of the
most heavily logged (indisc.) systems on that island and in all of
Southeast Alaska. The fish returns there do not support a
conclusion that there's an adverse impact. You can learn more for
yourself if you go by and check out the fish return statistics
throughout the whole Southeast Alaska - there is not a significant
or measurable reduction in areas that have been harvested."
MR. STUMP further stated, "Another fellow was saying that logging
dried up the stream. This issue was studied extensively by multi-
agency, multi-disciplinary groups, including the fisheries industry
and environmental groups and after extensive study and debate, it
was conclusively determined that if there was any adverse
qualitative impact - and I say qualitative impact - on stream
temperature that it is so insignificant here in Southeast Alaska
that there's no measurable quantitative impact. The biological
timber production capability in the Tongass National Forest is 1.2
billion board feet per year into perpetuity - forever - and that's
what could be done. To ask for just one-third of that, I think is
not too much and I fully support HJR 64 in hopes that it can
provide the ability for the pulp mill here to put in the additional
money for the environmental protection and to go (indisc.)."
Number 843
MATT HEMMINGWAY testified from Ketchikan saying, "I don't have any
studies to cite or anything, I'm just an industrial painter on one
of the crews. If you guys don't get this extension, then you're
going to put five more painters out of work. All this thing about
tourism (indisc.), you may not have been here during the summer
when they all leave on the boat and we've got to wade through the
trash that they leave laying everywhere. I hope you do extend it
and I do support it. Thank you."
Number 898
BRUCE ROMINE, Pipefitter, testified from Ketchikan that he has
worked at the Ketchikan Pulp Company for nine and one-half years.
He said, "I'm an officer of Local 783, WPPW, the largest union at
KPC. I was born and raised here in Ketchikan and I've lived here
most of my life. I like living in this community and I'm raising
my family here. I like the way the community has grown over the
years. It's kind of developed into what it is today because there
were individuals in this state that had the foresight to bring
industry in that use our renewable resources of which we have an
abundance. This town is built around the economy that the pulp
mill has brought to us folks and without it this town will change
just like many in Oregon, Washington and Montana - people without
work, families without the money to pay for homes and necessities.
I'm sick and tired of hearing and reading about how the
environmentalists are going to take everything we want. What do
they want? They want Ketchikan Pulp Company out of here - that's
for sure. The excuse they use is the pollution of water and air
and use of all of our natural resources. Basically what they're
saying is that they don't believe that we, the working people at
the pulp mill, will police the mill and keep pollution at a
minimum. Remember this - we all live here too and I, for one,
don't want to live in a pollution dirty community."
MR. ROMINE continued, "We have the union working with the pulp mill
management and governmental agencies to bring our pulp mill into
compliance with all the standards that have been set forth. The
pulp mill is spending millions of dollars in construction on a new
chlorine free facility and intends to spend up to $200 million more
to make this pulp mill as pollution free as possible and Local 783
will be there to help make this a reality. In order for a company
like KPC to make (indisc.) an expenditure like $200 million, they
need to know what they in the future are going to be able to recoup
that money and make some profits along with it. If not, it would
be only prudent to the stockholders for them to close the plant
down. The solution is simple - KPC is asking for a 15-year
extension on the contract. Personally, I don't think that that is
a long enough extension but that is what they've asked for so like
I say, give it to them and then see how KPC, under the direction of
the new CEO treats our environment and our community. We will be
there to monitor whatever happens. I say that it is time to fight
for your community, your homes and your jobs. Sitka's pulp mill is
now history and if the environmentalists have their way here, our
timber industry will be history also. I've watched many people
come to KPC for work - looking for a stable job."
Number 1095
ROBERT BUCKNELL testified from Ketchikan that he was born in
Ketchikan 38 years ago and has lived there his whole life. He
stated, "I've been employed at the Ketchikan Pulp Company for the
last 19 years and that's afforded me the opportunity to live a very
nice lifestyle and to start raising a family here in Ketchikan and
buy a home. I fully support this 15-year extension because I'd
like to continue to live here in Ketchikan and raise my family in
the manner that I was raised. Everybody talks about tourism and it
being a viable alternative to the timber industry and I do not see
that as most tourism jobs are minimum wage or $6.00 an hour jobs
(indisc.) $20.00 an hour jobs that the timber industry supplies.
As far as the environment goes, Ketchikan Pulp Company has spent
hundreds of millions of dollars and is spending hundreds of
millions of dollars to upgrade and comply with all environmental
laws. I'd like to see the contract extended for 15 years so that
I can continue to live and work and raise my family in Ketchikan.
Thank you."
Number 1161
CO-CHAIRMAN WILLIAMS remarked that he was losing committee members,
but he would like to give the two remaining individuals in Juneau
an opportunity to testify.
Number 1178
AMY SKILBRED urged committee members to vote against CS HJR 64.
She said, "The 50-year contract was signed in a different era.
Knowledge about effects on fish and wildlife were minimal. Tourism
was not even a fledgling industry. Times have changed and we now
know that logging activities are harmful for fish and wildlife and
tourism and subsistence. We must change the way we conduct timber
harvesting to preserve the small portion of old growth forest that
are left in the Tongass National Forest. Now is a transition
opportunity. Southeast Alaska has nine years to work on a smooth
transition from dependence on one multi-national corporation, which
receives a huge federal subsidy in order to operate, to a multi-
faceted economy built on fishing, tourism, hunting, subsistence
activities and small scale, independent logging operations. The
legislature should not sign off on a resolution that will result in
long-term harm to one group of Alaskans for short-term benefit to
the pulp mill and a small group of Alaskans."
MS. SKILBRED further stated, "Much has been heard about the acres
in the Tongass National Forest. Less than 700,000 acres of Tongass
National Forest are high volume old growth forest. So the argument
here on forests is always over that limited 700,000 acres, not the
rock and ice which tourists don't often go to. It's over the acres
that are necessary to deer, wildlife, fishing, tourism, subsistence
and they are the most valuable acres to the timber companies. We
all recognize that and in the paper there's always this 17 million
acres, 15 million acres for tourism and a bitty 2 million acres
left for logging. But we all have to recognize that we are talking
about the same areas that are important for fish, wildlife,
tourism, subsistence and the timber companies. It's time for KPC
to install the environmental protection equipment it needs to clean
up its act now and if it can't compete in the future, at the end of
the 50-year contract, KPC should work now on transition plans to
help all of Southeast Alaska. Thank you very much."
Number 1316
KURT BODENBENDER testified that, "I think my side of this has been
well stated and I'm not going to reiterate that. Excuse me, but
government and committees are new to me and I'm just curious about
your whole process and if these are the other people in the
committee, I'm curious about where they are and what their
commitments are right now. I'm also curious about - I know that
it's been a long couple of hours for you and you've listened to a
lot of different people, but I feel like some people haven't been
heard well enough. So, I'm curious about answers to those
questions and whether or not there are people here who should be
here and that's my main issue."
Number 1380
BILL THOMAS testified that he was born and raised in Alaska 49
years ago. He'd been a commercial fisherman for 27 years and
participated in the logging industry about the same amount of time
of which five or six years of that was actual logging. He lost a
brother in the timber industry in 1972. He stated, "I'm on the
Haines Borough Assembly and the school board and that's what I'm
going to speak about in my concerns, even though they are not
formal positions of the borough or the school board. The concern
is that we are looking at declining revenues from the state as far
as revenue sharing and if you tie that in with the Tongass Forest
receipts losses, a poor year in the fishing industry as far as
prices, that will add to the cost of running our local governments.
We get about $400,000 a year from the Tongass; about $350,000 from
the raw fish tax. Without those, we'll have to add additional mill
rates to the local people or a sales tax to make up the difference.
This is not a formal position of the Haines Borough, but mine alone
because I am concerned and I support the extension of the contract,
provided they have Alaska local contractors doing the work down
there. Thank you."
Number 1463
CO-CHAIRMAN WILLIAMS noted for the record the following individuals
from Ketchikan were in support of HJR 64 but were unable to testify
due to the committee running out of time: Henry Metcalf; Marty
Gillet; David Martin; Henry Keene; Jerry Collins; Mike Speelman;
Steve Hemminger; Maxine Doyle; Katy French; Bill Elberson; and
Shawn Richardson. Co-Chairman Williams thanked everyone for their
testimony and closed the meeting to public testimony.
CO-CHAIRMAN WILLIAMS announced he would like to move CS HJR 64 out
of committee if possible and inquired as to the wishes of the
committee.
Number 1494
REPRESENTATIVE SCOTT OGAN made a motion to move CS HJR 64(RES) out
of committee with individual recommendations. Representative
Davies objected.
CO-CHAIRMAN WILLIAMS asked for a roll call vote. Voting in favor
of the motion were Representatives Austerman, Kott, Long, Ogan,
Green and Williams. Voting against the motion was Representative
Davies. He announced that CS HJR 64(RES) was moved from the House
Resources Committee with individual recommendations.
ADJOURNMENT
There being no further business, Co-Chairman Williams adjourned the
House Resources Committee at 6:10 p.m.
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