Legislature(1999 - 2000)
02/16/2000 01:05 PM House RES
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HOUSE RESOURCES STANDING COMMITTEE
February 16, 2000
1:05 p.m.
COMMITTEE CALENDAR
BRIEFING: ALASKA MINERALS COMMISSION
TAPES
00-9
SIDE(S) A & B
CALL TO ORDER
REPRESENTATIVE BILL HUDSON, Co-Chair, convened the House
Resources Standing Committee meeting at 1:05 p.m.
PRESENT
Committee members present were Representatives Masek, Hudson,
Joule, Whitaker, Harris, Barnes and Morgan.
SUMMARY OF INFORMATION
IRENE ANDERSON, Alaska Minerals Commission, explained that the
commission's number-one concern is the crisis on the issuance
of permits from exploration to development. She suggested
that the Alaska State Legislature, the Governor and the
Department of Environmental Conservation (DEC) work together
for a solution.
KARL HANNEMAN, Alaska Minerals Commission, commented on the
report the commission came out with in January 2000. He
explained that the report usually includes recommendations to
the legislature, but this year focuses on permit issuance at
the DEC and fees for services. He further explained that
there is dire need for an effective permitting program.
REPRESENTATIVE JOULE asked Mr. Hanneman and Ms. Anderson to
comment on what is happening in the industry right now as well
as the situation at the DEC and its permitting process.
MR. HANNEMAN explained that there is a lot of activity in the
mining industry right now, specifically with the Red Dog Mine.
He said it is important to maintain competent personnel at the
DEC, but that they could contract out on projects as well. He
explained that recommendations take money and that there
should possibly be priorities within recommendations. Along
with a long-range fiscal plan, there needs to be a bill to
address the fees issue.
CHARLOTTE MACCAY, Alaska Minerals Commission, explained that
existing projects as well as new projects need a permitting
process that does not give room for hidden costs or payments.
NIEL MCKINNON, Alaska Minerals Commission, discussed how the
State of Alaska collects money on mining claim rent.
TOM IRWIN, General Manager, Fort Knox Mine, discussed the
benefits to the community from the Fort Knox Mine. He
explained that they net about $107 million and much of that
goes back into the community. He is not asking for shortcuts,
but protection that is strong and credible.
STEVE BORELL, Executive Director, Alaska Miners Association,
credited the importance of the Alaska Minerals Commission
report. He explained that metals pricing is improving and
that the industry is seeing growth. There are 50,000 total
claims within the state. He further explained that right-of-
way access is crucial for the mining industry.
REPRESENTATIVE BARNES commented that the only economical
development project during the Sheffield Administration was
the Red Dog Mine, and it is a success story.
COMMITTEE ACTION
The committee took no action during this portion of the
meeting.
ADJOURNMENT
CO-CHAIR HUDSON ended this portion of the meeting at 2:30 p.m.
[See the House Resources Standing Committee minutes for
February 16, 2000, 2:30 p.m., for discussion regarding
legislation.]
NOTE:
The meeting was recorded and handwritten log notes were taken.
A copy of the tape(s) and log notes may be obtained by
contacting the House Records Office at 129 6th Street, Suite
229, Juneau, Alaska 99801, (907) 465-2214, and after
adjournment of the second session of the Twenty-first Alaska
State Legislature this information may be obtained by
contacting the Legislative Reference Library at 129 6th
Street, Suite 102, Juneau, Alaska 99801, (907) 465-3808.
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