01/19/2001 01:04 PM House RES
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ALASKA STATE LEGISLATURE
HOUSE RESOURCES STANDING COMMITTEE
January 19, 2001
1:04 p.m.
COMMITTEE CALENDAR
OVERVIEW: DEPT OF NATURAL RESOURCES
TAPES
01-2, SIDES A & B
01-3, SIDE A
CALL TO ORDER
REPRESENTATIVE DREW SCALZI, Chair, called the House Resources
Standing Committee meeting to order at 1:04 p.m.
PRESENT
Committee members present were Representatives Scalzi, Masek,
Fate, Green, Stevens, McGuire, Kapsner, and Kerttula.
Representative Chenault was excused.
SUMMARY OF INFORMATION
PAT POURCHOT, Commissioner, Department of Natural Resources
(DNR), prefaced the overview by stating that the department has
opened a Joint Pipeline Office to facilitate and coordinate
permit renewal with the federal government for the 2004 Trans-
Alaska Pipeline System (TAPS) deadline. State regulations have
been changed to synchronize with the federal deadlines.
MARK MYERS, Director, Division of Oil & Gas, Department of
Natural Resources (DNR), told the committee that the overall
level of activity in this division increased greatly last year
due to the BP merger. Exploration has doubled due to new 3-D
seismic technology with a one in three success rate from a one
in ten rate using the former technology. The cost for 3-D
seismic exploration ranges from $30,000 to $50,000 per mile. The
state, he explained, has limited ability at this time to utilize
this technology because of personal and software limitations. It
is very important for the state to be able to mimic the efforts
of private industry so that it has comparable bargaining skills
when lease negotiations take place. Asset teams are composed of
highly skilled individuals, such as geologists, physicists,
cartographers, land negotiators and attorneys, economists, and
transportation experts. For example, he said, royalties could
range from 5 to 33 percent; therefore, it is important to be
negotiating with the same information as that of the oil
company's team. At the present time seven division positions are
vacant because of the greater salaries in the private sector.
CHAIRMAN SCALZI told Commissioner Pourchot and Mr. Myers that he
would entertain holding an executive session to discuss payroll
needs for the department to attract the level of professionalism
needed to compete with the oil industry.
COMMISSIONER POURCHOT gave a brief overview of the Division of
Mining, Land and Water. He stated that last year over 12,000
mining claims were staked - a record despite low prices. Last
year SB 115 was passed, which streamlined the permitting
process. Although there was a fiscal note attached, the bill
encouraged many more applications than the division could
handle. The backlog is being addressed and the public is more
easily able to access more and more information online. Over 500
water permits are currently being processed on a priority basis
until more funds are allocated for more personnel. Meanwhile,
because of the back-up, the department is vulnerable to court
action, such as the North Star matter last year. Regulations are
being drafted to better prioritize applications and to set up a
fee structure to offset some of the handling costs.
BOB LOEFFLER, Director, Division of Mining, Land and Water,
testifying via teleconference, explained that the "stake your
own" program designated for remote areas has meant a profitable
return to the state. An increase in the number of new claims
staked can be directly linked to the recent airborne survey
program. He added that 40-45 million board feet of timber is the
average harvested amount per year, although 53 million board
feet was cut last year.
JEFF JANKE, Director, Division of Forestry, testifying via
teleconference, discussed fire fighting and training. Last
season was very moderate for Alaska; however, firefighters
received valuable training due to their deployment to the
numerous Lower-48 fires. Equipment, manpower, and materials were
loaned, with a $4 million return on equipment, either new or in
good condition. He said that local firefighters are trained in
most communities as a first response and comprise 20 percent of
the state's program.
COMMISSIONER POURCHOT explained that the state presently has 120
park units, which received 3.8 million visits the past year. He
stated it is a financial struggle to man all the units in such a
far-flung state. He noted there is a $38 million request in the
capital budget for more park personnel.
JIM STRATTON, Director, Division of Parks and Outdoor
Recreation, testifying via teleconference, addressed the park
fee increases for in-state day and annual use. He said that the
annual pass for out-of-state residents was eliminated to
discourage "living" in a campsite all summer.
COMMISSIONER POURCHOT added that new grant and fee programs,
such as trails, education, and safe boating, would be helpful to
the division's budget.
ROB WELLS, Director, Division of State Agriculture, testified
via teleconference. He and Commissioner Pourchot reported a
successful year for land sales, which were $3.5 million, which
was split between the agriculture revolving land fund and
general funds. On July 1, 2000, the Board of Agriculture was put
into effect. The seven-member board has met four times,
approving $1.1 million in loans to borrowers, disposing of 11
land parcels, and reducing the interest rate on short-term
loans. The board has the flexibility to adjust the lending rate
to be comparable to the private sector.
MARTY RUTHERFORD, Deputy Commissioner, Department of Natural
Resources, listed three state and three federal members who sit
on the trustee council of the Exxon Valdez Oil Spill, stating
that all of their large decisions have already been made.
COMMISSIONER POURCHOT concluded the overview by saying he would
appreciate the opportunity to discuss salary issues in executive
session at a later date, after his department had the
opportunity to organize a presentation on this subject.
ANNOUNCEMENTS
There were no announcements.
COMMITTEE ACTION
The committee took no action.
ADJOURNMENT
CHAIR SCALZI adjourned the House Resources Standing Committee
overview meeting at 2:45 p.m.
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 State Capitol, Room 3,
Juneau, Alaska 99801 (mailing address), (907) 465-2214, and
after adjournment of the second session of the Twenty-Second
Alaska State Legislature this information may be obtained by
contacting the Legislative Reference Library at (907) 465-3808.
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