Legislature(2019 - 2020)BARNES 124
02/27/2019 01:00 PM House RESOURCES
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| Presentation(s): Department of Natural Resources | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
HOUSE RESOURCES STANDING COMMITTEE
February 27, 2019
1:01 p.m.
MEMBERS PRESENT
Representative John Lincoln, Co-Chair
Representative Geran Tarr, Co-Chair
Representative Grier Hopkins, Vice Chair
Representative Sara Hannan
Representative Ivy Spohnholz
Representative Chris Tuck
Representative David Talerico
Representative George Rauscher
Representative Sara Rasmussen
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
PRESENTATION(S): DEPARTMENT OF NATURAL RESOURCES
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
BRENT GOODRUM, Deputy Commissioner
Office of the Commissioner
Department of Natural Resources
Anchorage, Alaska
POSITION STATEMENT: Co-provided a PowerPoint presentation
entitled, "Overview of Department of Natural Resources," dated
2/27/19, and answered questions.
SARA LONGAN, Deputy Commissioner
Office of the Commissioner
Department of Natural Resources
Anchorage, Alaska
POSITION STATEMENT: Co-provided a PowerPoint presentation
entitled, "Overview of Department of Natural Resources," dated
2/27/19, and answered questions.
CHANTAL WALSH, Director
Central Office
Division of Oil and Gas
Department of Natural Resources
Anchorage, Alaska
POSITION STATEMENT: Answered questions during the presentation
by the Department of Natural Resources.
KEN PAPP, Deputy Director
Central Office
Division of Geological and Geophysical Surveys
Department of Natural Resources
Fairbanks, Alaska
POSITION STATEMENT: Answered questions during the presentation
by the Department of Natural Resources.
ROB CARTER, Deputy Director
Plant Materials Center
Division of Agriculture
Department of Natural Resources
Palmer, Alaska
POSITION STATEMENT: Answered questions during the presentation
by the Department of Natural Resources.
JOHN "CHRIS" MAISCH, State Forester and Director
Division of Forestry
Department of Natural Resources
Anchorage, Alaska
POSITION STATEMENT: Answered questions during the presentation
by the Department of Natural Resources.
FABIENNE PETER-CONTESSE, Director
Central Office
Support Services Division
Department of Natural Resources/Office of Management and Budget
Juneau, Alaska
POSITION STATEMENT: Answered questions during the presentation
by the Department of Natural Resources.
ACTION NARRATIVE
1:01:49 PM
CO-CHAIR GERAN TARR called the House Resources Standing
Committee meeting to order at 1:01 p.m. Representatives
Rauscher, Rasmussen, Tuck, Hannan, Talerico, Hopkins, and Tarr
were present at the call to order. Representatives Lincoln and
Spohnholz arrived as the meeting was in progress.
^PRESENTATION(S): DEPARTMENT OF NATURAL RESOURCES
PRESENTATION(S): DEPARTMENT OF NATURAL RESOURCES
1:02:26 PM
CO-CHAIR TARR announced that the only order of business would be
a presentation by the Department of Natural Resources. Prior to
the presentation, Co-Chair Tarr asked Representative Rasmussen
to make introductory remarks.
1:03:27 PM
REPRESENTATIVE RASMUSSEN described District 22 and said her
interest in serving on the House Resources Standing Committee is
based on her belief responsible resource development is the best
way for the state to address the impacts of the current economic
downturn that has affected the private business sector.
1:04:53 PM
BRENT GOODRUM, Deputy Commissioner, Office of the Commissioner,
Department of Natural Resources (DNR), advised new members of
the committee that the annual publication, Program Guide for the
Department of Natural Resources, provides additional information
on the department and its programs.
1:06:33 PM
SARA LONGAN, Deputy Commissioner, Office of the Commissioner,
DNR, directed attention to slide 3 of the PowerPoint
presentation entitled, "Overview of Department of Natural
Resources," which illustrated DNR's organizational chart. Slide
4 provided a map and a short background of statistics on Alaska,
and she discussed Alaska's land base and the division of
federal, state, and Native Corporation land ownership. Alaska
contains world-class resources; in fact, the North Slope (NS)
basin was recently classified as a "Super Basin" by IHS Markit
because it has more undiscovered, potentially recoverable oil
than any Arctic nation, including an estimated 40 billion
barrels of conventional oil and an estimated 200 trillion cubic
feet of conventional natural gas. She further noted potential
unconventional resources such as heavy oil, shale oil, and
viscous oil, and the presence of shale gas, tight gas, and gas
hydrates. Significant undiscovered resources in the Cook Inlet
include natural gas, oil, and natural gas liquids, as Alaska is
relatively underexplored (slide 5). She turned attention to the
Division of Oil and Gas (DOG), which has 98 positions, and
paraphrased from the division's mission statement as follows:
Manages lands for oil, gas and geothermal exploration
and development in a fair and transparent manner to
maximize prudent use of resources for the greatest
benefit of all Alaskans; facilitates safe and
environmentally conscious operation and maintenance of
common carrier pipeline.
MS. LONGAN pointed out DOG fulfils its role to generate
significant revenue for the state by conducting lease sales,
collecting royalties, authorizing oil and gas activities,
regulating common carrier pipelines on state land, providing
commercial analysis, economic modeling, and financial risk
assessments, conducting audits, and other services (slide 6).
1:10:25 PM
REPRESENTATIVE TUCK asked Ms. Longan to identify some of the
largest common carrier pipelines overseen by the state.
MS. LONGAN said the largest are the Trans-Alaska Pipeline System
(TAPS) and the Point Thomson Export Pipeline project.
CO-CHAIR TARR asked whether DOG's mission statement has been
updated.
MS. LONGAN explained the DOG mission statement now includes
[facilitates safe and environmentally conscious operation and
maintenance of common carrier pipelines] because for the purpose
of efficiency the state pipeline coordinator is now co-located
within DOG.
REPRESENTATIVE HANNAN inquired as to whether there are common
carrier pipelines outside of NS.
MS. LONGAN said yes, and offered to provide committee members a
map of all common carrier pipelines throughout the state. She
the listed DOG major accomplishments in [2018]:
• held five area-wide lease sales resulting in over $20
million in bonus bids and over 200,000 acres leased
• initiated the release of seismic and well datasets for oil
and gas exploration projects that received tax credits
• began the production forecast previously prepared by the
Department of Revenue's contractor
• issued four royalty net profit share lease audits and four
state royalty audits collecting over $74 million, including
interest
• administered approximately 2,000 leases and licenses,
covering nearly 5.3 million acres
• processed 65 Plan of Operation Amendments for activities on
NS and in Cook Inlet
REPRESENTATIVE SPOHNHOLZ asked whether four audits in 2018
compares with the number completed in previous years.
1:14:14 PM
MS. LONGAN was unsure and offered to provide this information to
committee members.
REPRESENTATIVE TUCK inquired as to the years of the audits.
1:14:57 PM
CHANTAL WALSH, Director, DOG, DNR, said the audits issued in
2018 originated in past years; she offered to provide committee
members additional information for the past five years. In
further response to Representative Tuck, she added DOG is
working on audits [that originated] in the last five years.
CO-CHAIR TARR clarified the aforementioned audits are royalty or
profit share lease audits as opposed to audits related to
severance tax, which are released by the Department of Revenue.
MS. WALSH said yes.
MS. LONGAN turned attention to the Office of Project Management
and Permitting (OPMP). She said OPMP is an office of 13 staff
located in the DNR commissioner's office. The OPMP budget is
$6.3 million, of which less than $1 million are unrestricted
general funds (UGF), as OPMP operates under a reimbursable
services model. She paraphrased from the OPMP mission statement
as follows:
Coordinates multi-agency regulatory reviews and
authorizations, while collaboratively engaging federal
agencies on land use planning and policy initiatives
to maintain and enhance the state's economy, quality
of life, and maximize the value of Alaska's vast
natural resources.
MS. LONGAN explained OPMP is unique to Alaska and assures
companies investing in Alaska that permit reviews are robust,
transparent, and timely. By implementing a one-stop shop, OPMP
supports private industry, regulators, and the general public
(slide 8).
1:18:00 PM
CO-CHAIR TARR asked Ms. Longan to highlight any changes that
have been made to mission statements.
MS. LONGAN listed OPMP major accomplishments in 2018 (slide 9):
• ongoing federal review, state permitting and regulatory
compliance for oil and gas and mining projects such as
Nanushuk, Pikka, Greater Moose's Tooth, Willow, and the
Alaska LNG project
• ongoing work by the large size mine management permit team
on all operating, under review, and proposed mines
statewide such as Donlin Gold, Red Dog, and the Ambler
Mining District Industrial Access Project
• ongoing coordination of state permits for five of the
aforementioned projects that have received a Final
Environmental Impact Statement (EIS) in 2018
• ongoing engagement with federal agencies on federal
projects such as the Coastal Plain Oil and Gas Leasing
Program, the National Petroleum Reserve-Alaska (NPR-A)
Integrated Activity Plan
• ongoing partnership with the North Slope Borough on the
Arctic Strategic Transportation and Resources (ASTAR)
project including planning for a digital project library,
health assessment, and mapping
1:21:47 PM
REPRESENTATIVE RASMUSSEN asked for a typical timeframe to
complete an EIS.
MS. LONGAN advised the current federal administration expects
federal agencies to complete the [National Environmental Policy
Act of 1969 (NEPA)] EIS process within one year; prior to the
current federal administration, the typical average timeline for
oil and gas projects has been three years, or more in certain
circumstances. She opined the current processing time is
expected to be "roughly one year."
REPRESENTATIVE RASMUSSEN asked, "So, can you estimate per year,
how much money the state would lose in royalties from lack of
production or ... delaying the process?"
MS. LONGAN acknowledged time lost [due to delays in] the NEPA
process - or delays due to federal or state permitting - mean
less royalties to the state in most cases, although OPMP has not
reviewed a project in this regard. However, OPMP is encouraged
by the shorter federal process timeline which maintains public
and stakeholder collaboration.
REPRESENTATIVE HANNAN surmised royalties would be paid to the
state after permitting and questioned how the time lost would
reduce royalties.
1:24:29 PM
MS. LONGAN said, "A time delay in bringing projects online I see
as an opportunity cost for those resources being developed and
those royalties being made available." Ms. Longan directed
attention to the Division of Geological and Geophysical Surveys
(DGGS), which is a team of 45 positions; the mission of DGGS
read:
Determine the potential of Alaska land for production
of metals, minerals, fuels, and geothermal resources;
the locations and supplies of groundwater and
construction material; and the potential geologic
hazards to buildings, roads, bridges, and other
installations.
MS. LONGAN related DGGS collects, analyzes, and publishes data
maps and reports that stimulate oil, gas, and mineral
development and identify geologic hazards. Importantly, DGGS
manages the Geologic Materials Center (GMC). Major
accomplishments by DGGS in 2018 include (slide 10):
• hosted 1,358 individuals at GMC
• conducted workshops for private industry and the public
• began surveys using light detection and ranging (LIDAR)
methodology
• conducted petroleum geology fieldwork on NS
• began an essential sand and gravel assessment of NPR-A
• established erosion and flood monitoring sites in Western
Alaska
• conducted geologic mapping in the Richardson and Tanacross
areas
MS. LONGAN read from the Mental Health Trust Land Office (TLO)
mission as follows:
Protect and enhance the value of Alaska Mental Health
Trust Lands, including minerals, coal, oil, and gas,
timber, and real estate, while maximizing revenues
from those lands over time to support mental health
services.
MS. LONGAN noted TLO consists of a staff of 19 positions with
an overall fiscal year 2019 (FY 19) budget of $4.5 million, of
which zero are UGF; TLO generates revenue for trust
beneficiaries from land sales and leasing of land and resources
owned by the Alaska Mental Health Trust Authority, DNR,
including real estate investment and development, and resource
development. Major accomplishments by TLO in 2018 include
(slide 11):
• generated $11.2 million to fund programs for over 85,000
trust beneficiaries
• explored Icy Cape for future development
• continued to focus on a 20,000-acre land exchange with the
U.S. Forest Service, U.S. Department of Agriculture
1:29:04 PM
CO-CHAIR TARR reviewed items that need further responses.
REPRESENTATIVE HOPKINS surmised DGGS, by providing data on NS,
reduces the initial risk of exploration to oil and gas
companies.
1:30:27 PM
KENNETH PAPP, Deputy Director, DGGS, DNR, affirmed the division
relieves risk to industry by its fieldwork, especially in the NS
region, and collaborates with other geologists within DOG and
with the U.S. Geological Survey, U.S. Department of the Interior
(DOI). He said DGGS provided information on the Brookian and
Nanushuk formations in the NS foothills - which played a
critical role in the recent oil discoveries at Pikka, Horseshoe,
and Willow - and the oil industry has expressed appreciation for
the work accomplished by DGGS.
REPRESENTATIVE HOPKINS asked whether DGGS has recently worked in
the Cook Inlet area.
MR. PAPP informed the committee in the past several years DGGS
has completed fieldwork in the western portion of Cook Inlet; in
the coming year, DGGS will produce a compilation map of three
year's work, beginning in the Red Glacier Formation area.
However, due to increased activity on NS, DGGS is slowing its
efforts in Cook Inlet.
REPRESENTATIVE HOPKINS asked what the legislature can do to help
DGGS enhance NS exploration.
MR. PAPP advised logistics and fieldwork in Alaska are
challenging and suggested DGGS could increase its staff and
helicopter support.
1:35:10 PM
REPRESENTATIVE TUCK asked for information on the Nanushuk
workshop.
MR. PAPP explained DGGS hosted a workshop at GMC [to discuss]
the Nanushuk rock formation along the Colville River that has
impressive oil and gas reservoir potential and is related to
discoveries in the Pikka, Horseshoe, and Willow units.
MR. GOODRUM returned attention to slide 12 and observed Alaska's
mineral potential for many of its resources ranks in the top ten
worldwide as follows:
• coal: 17 percent
• gold: 8 percent
• zinc: 5 percent
MR. GOODRUM continued, noting a recent report ranked Alaska
fifth for mineral potential and tenth for investment
attractiveness out of ninety-one jurisdictions [document not
provided].
REPRESENTATIVE SPOHNHOLZ pointed out the University of Alaska
(UA) is a key resource to developing mineral resources in Alaska
because UA has professional academic expertise in the Anchorage
and Fairbanks geology programs to support research and
exploration throughout the state. She cautioned without the
university training Alaska's workforce in engineering and
geology, the state will continue to import expertise and export
its resources to the detriment of its economy.
1:38:3a5 PM
MR. GOODRUM acknowledged many DNR staff have attended UA
campuses. He directed attention to the Division of Mining, Land
and Water (DMLW) and its activities that interact with almost
all the other divisions within DNR. He said responsibilities of
the 207 employees at DMLW include managing over 160 million
acres, acquiring federal land from the statehood land
entitlement, permitting, land planning, land disposal,
stewardship, and reclamation. Major accomplishments by DMLW in
2018 include (slide 14):
• generated $27.2 million in revenue
• continued work on the North Slope Area Plan
• issued a preliminary decision for the Haines Borough
municipal entitlement
• processed survey plats for the unorganized borough
• worked with other agencies to dispose of an abandoned and
derelict vessel
• confirmed state title to submerged lands beneath eight
waterbodies
• authorized ice roads, snow roads, and ice pads
• sold 217 parcels garnering $2.42 million in revenue
• completed inspections on 60 percent of the state's
jurisdictional dams
REPRESENTATIVE RASMUSSEN inquired as to a timeline for
additional federal land acquisition.
MR. GOODRUM explained the state is entitled to about 5.3 million
acres in accordance with [the 1959 Alaska Statehood Act].
Federal lands become available through plans such as the Central
Yukon Resources Management Plan which includes Public Land Order
5150 - highly valuable land in the TAPS corridor - that is
sought by the state; however, the transfer of land awaits
completion of the Central Yukon Resources Management Plan which
may be completed by the end of 2019. After Public Order 5150 is
lifted, the state will select said land for state ownership; the
TAPS corridor includes almost 1 million acres with access and
mineral rights. Furthermore, DNR seeks to bring into state
ownership former federal mining claims.
1:43:56 PM
REPRESENTATIVE RAUSCHER returned attention to slide 14 and asked
whether gravel - from rivers in which the state has ownership of
submerged lands - could be extracted from rivers and sold by the
state.
MR. GOODRUM said if the state owns the submerged lands beneath a
waterbody, the state can issue authorizations for activities and
after an application to conduct a certain activity was received,
the state could begin a public process on the intended activity.
REPRESENTATIVE RAUSCHER questioned how many permits and
contracts expire after two years without a response; for
example, there are three applications in his district that will
expire in March and thereby require the applicant to reapply.
MR. GOODRUM offered to review the aforementioned specific
permits. He added DNR seeks to ensure permitting is as
effective and efficient as possible.
REPRESENTATIVE HANNAN recalled past legislation related to
identify derelict vessels and questioned whether the state has
an inventory or an estimate of the cost to clean up derelict and
abandoned vessels throughout Alaska.
MR. GOODRUM related DNR has a list of some known abandoned and
derelict vessels and the amount of funding to address this issue
would be substantial; Senate Bill 92 [passed in the Thirtieth
Alaska State Legislature] created a fund from the registration
of certain vessels and was "the first step" to finding
solutions. In further response to Representative Hannan on
funding, he remarked:
... money hasn't yet started being collected, and my
understanding is that it potentially is listed in a
number of possible funds that may be swept, based upon
legislation either, yet, to be introduced by this
administration.
1:49:35 PM
MR. GOODRUM, in response to Representative Spohnholz, restated
the state is still owed approximately 5.3 million acres by the
federal government.
REPRESENTATIVE TALERICO asked whether any municipalities have
completed selections from municipal land entitlements.
MR. GOODRUM advised some boroughs and municipalities have
completed their entitlements and others are still due land; he
offered to provide a list of calculated and conveyed
entitlements.
REPRESENTATIVE TALERICO further asked whether there are any
municipal land selections "over top of" state land entitlements.
MR. GOODRUM was unsure and offered to provide further
information.
REPRESENTATIVE HANNAN has heard the Juneau office of the State
Recorder's Office, DNR, is closing this fiscal year and asked
for the status of the other recording offices.
1:51:25 PM
MR. GOODRUM acknowledged the current budget proposes to close
four satellite recording districts leaving Anchorage as the sole
recording district, utilizing electronic recording. For a
number of years, electronic recording has been used successfully
and economically.
MR. GOODRUM turned attention to the Division of Forestry (DOF),
that with a staff of 236 positions is the lead state agency
responsible for fighting wildfire on approximately 150 million
acres throughout the state; in 2018, DOF responded to 203 fires,
compared to its response to 766 fires in 2015. Also in 2018,
DOF sold 7.9 million board feet of logs to 15 Alaska-based
companies (slide 15).
CO-CHAIR TARR surmised the 236 staff positions are largely
summer crews for fire response.
1:53:26 PM
MR. GOODRUM expressed his understanding 236 positions are
permanent staff within DOF, and over 1,000 firefighters are
trained each year. Major accomplishments by DOF in 2018
include:
• 96 percent Alaska hire in the firefighting workforce
• generated $1.4 million in local vendor contracts
• signed a second Good Neighbor Authority, U.S. Forest
Service, Department of Agriculture, contract which was a
mix of state and federal timber in Southeast
REPRESENTATIVE HANNAN asked about the Good Neighbor Authority.
MR. GOODRUM explained the Good Neighbor Authority is a federal
program that allows state agencies to facilitate timber sales on
state and certain federal public lands. He turned attention to
the Division of Parks and Outdoor Recreation (DPOR), noting DPOR
has 164 positions to oversee the largest state park system in
the U.S.: 3.3 million acres; the largest park is Wood-Tikchik
State Park; there are 900 miles of hiking trails within the
state. In addition, DPOR administers federal recreational trail
grants and statewide programs for boating safety, and historic
preservation such as the Kids Don't Float Life Jackets program
that is credited for saving 32 lives. Major accomplishments for
DPOR in 2018 include (slide 18):
• completed the Eagle Rock Unit facility facelift
• completed the Byers Lake bridge
• reduced reliance on general funds for operations
• provided almost 4,000 loaner life jackets
• issued archaeological survey permits
• awarded grants for trails
1:59:37 PM
MR. GOODRUM continued to slide 19 and said the Division of
Agriculture (DoAg), with 33 positions, provides land sales,
loans, inspections, the Alaska Grown program, and other programs
essential to the agricultural industry. The Plant Materials
Center (PMC) provides the sole source of plant material
developed for Alaska's unique environment and protects Alaska
from invasive species by providing "clean seeds" in situations
such as land reclamation along roads. Major accomplishments by
DoAg in 2018 include (slide 20):
• launched the International Trade Effort
• leveraged $1.8 million in grant funding for the
agricultural industry
• in accordance with the [Agriculture Improvement Act of
2018], leveraged microgrants
• introduced products to markets such as the Anchorage School
District
• Agriculture Revolving Loan Fund promotes the development of
agriculture and managed over $7 million in loans
• PMC conditioned over 165,000 pounds of native seed
• inspected approximately $100 million in timber and
agricultural exports
• continued work with other agencies against invasive species
REPRESENTATIVE RAUSCHER inquired as to the market for Alaska's
timber.
MR. GOODRUM answered Alaska raw timber predominately goes to
Southeast Asia; he was unsure as to a domestic market.
REPRESENTATIVE HOPKINS asked for further information on the
location and success of Elodea eradication efforts.
2:04:03 PM
ROB CARTER, Deputy Director, PMC, DoAg, DNR, informed the
committee the two known areas of Elodea infestation in the
Matanuska-Susitna (Mat-Su) region are the Alexander Lake
drainage and the Sucker Lake complex; in addition, a new
infestation was found in Jewel Lake. All Anchorage lakes are
actively monitored - as are Potter's Marsh and Lake Hood - for
management and treatment. Through partnerships with the Alaska
Department of Fish & Game, the U.S. Fish and Wildlife Service,
DOI, and boroughs, Elodea has been eradicated from the Kenai
Peninsula and several lakes. Currently, DoAg is analyzing
connecting lakes and waterbodies for potential Elodea including
Chena Slough, Manly Slough, Bathing Beauty Pond, and Quartz
Lake.
REPRESENTATIVE HOPKINS asked about indications of Elodea
expanding into Clearwater [Creek], the Tanana River, or the
Chena River.
MR. CARTER confirmed DoAg has been actively managing Chena
Slough and surveys will continue to ensure the area is under
control; nothing has been found in the Clearwater area however,
areas have been identified in the Tanana drainage at Manly
Slough and closer to Nenana.
REPRESENTATIVE RASMUSSEN asked whether problems are caused by
humans who swim in Sand Lake, Jewel Lake, or other lakes.
MR. CARTER advised DoAg has concluded the problems are caused by
people who [illegally dump] fish tanks in lakes, floatplane
traffic and boat and trailer traffic; DoAg seeks to educate the
public as to what Elodea looks like, and activities that cause
problems, and to actively manage the invasive population and
reduce the transfer of invasive species to other waterbodies.
REPRESENTATIVE RASMUSSEN observed the cost of lumber is high in
Alaska and asked whether there are local processing facilities
for timber.
2:09:02 PM
JOHN "CHRIS" MAISCH, State Forester and Director, Division of
Forestry (DOF), DNR, advised there are many mills statewide
producing domestic lumber, particularly in Interior, Kenai, and
Anchorage areas.
CO-CHAIR TARR stated a number of positions such as the Alaska
Grown program and PMC are cut by the budget; she suggested the
committee is informed by testimony related to the unlimited
opportunities for agriculture in Alaska.
REPRESENTATIVE TALERICO questioned whether the National Park
Service (NPS), DOI, makes substantial purchases from PMC.
MR. CARTER said PMC has sold to countless federal agencies and
divisions - and to the private sector - native seeds and
materials that have been developed and tested for use on federal
lands in Alaska.
REPRESENTATIVE TALERICO urged NPS to use clean seed procured
from PMC on every project in Alaska.
2:12:53 PM
MR. GOODRUM directed attention to the Support Services Division
(SSD) that has 71 positions tasked to manage and provide the
state's land records management; SSD also provides the
geospatial information system (GIS) support which is important
to those who make decisions for the use of state land and water.
Further, SSD oversees procurement, budget, and financial
transactions; ensures public funds from 20 different sources are
managed with integrity and transparency; provides human
resources services. Major accomplishments by SSD in 2018
include (slide 21):
• transitioned travel services to Shared Services of Alaska
• provided technology services to statewide GIS Geoportal
• reduced its workspace in Anchorage and Fairbanks to reduce
operating costs
CO-CHAIR TARR surmised SSD is now the equivalent of
administrative services in the "new organization."
MR. GOODRUM explained the change is that the administrative
support directors are now "dual-hatted"; for example, the
director of DNR's SSD "wears two hats" between DNR and the
Office of Management and Budget (OMB), Department of
Administration (DOA).
2:15:51 PM
FABIENNE PETER-CONTESSE, Director, SSD, DNR/OMB, DOA, further
explained SSD, in contrast with administrative services in other
departments, has a three-fold mission: traditional
administrative services such as human resources, budget,
procurement, and financial management; GIS; the state recorder's
office. Regarding the director's additional position at OMB,
she stated there are benefits to co-locating with administrative
services directors across the state in that the directors will
be able to address chronic problems related to payroll and other
issues. As her position remains embedded in DNR, she also
continues her work there.
2:19:50 PM
REPRESENTATIVE RASMUSSEN questioned whether a change to
electronic recording at the recorder's office would garner
savings and if the processing time at the recorder's office will
be delayed beyond 24 hours.
MS. PETER-CONTESSE recognized a proposal in the governor's
amended budget reduces the recorder's budget by $408,000 through
the closure of offices in Kenai, Palmer, Juneau, and Fairbanks;
all recording would be processed in the Anchorage office.
Currently, about 50 percent of documents are electronically
recorded, which can be processed anywhere. The proposal reduces
staff and moves necessary staff to Anchorage. There will be a
reduction of walk-in service but not an increase in processing
time; all documents will be available electronically online.
CO-CHAIR TARR asked how documents would be recorded by residents
who do not have access to an office.
MS. PETER-CONTESSE said a resident could pay a fee to a title
company and the title company would submit the document for
recording; the document could also be mailed to the Anchorage
office.
REPRESENTATIVE RASMUSSEN said she was familiar with services
related to real estate documents and asked whether any other
transactions were processed by the recorder's office.
MS. PETER-CONTESSE advised there are many documents processed by
the recorder's office such as the original plat files on
residential and municipal properties, liens, child support
enforcement liens, real estate transactions, and mining
affidavits of labor.
2:23:53 PM
REPRESENTATIVE RASMUSSEN asked whether statute or regulations
require that hard copies or electronic copies of all plat files
must be kept.
MS. PETER-CONTESSE was unsure whether statute or regulations
require the recorder's office to keep original plat files so
real estate developers or others can check-out copies of plat
files; however, any changes to plats are made to the original.
Pursuant to national standards, other original documents are
recorded, scanned on microfilm, and returned. In further
response to Representative Rasmussen, she said original plats
are kept in the recorder's offices in Anchorage, Fairbanks, and
Juneau.
REPRESENTATIVE RASMUSSEN surmised [closing offices] would
require more space to store files in Anchorage.
MS. PETER-CONTESSE said yes. The efficient use of storage space
in Anchorage will be reviewed.
REPRESENTATIVE HANNAN suggested electronic recording and
searching of documents would be convenient for those trained to
do so; however, the diversity of recorded documents such as
historical mining plats and liens would complicate access to the
files. She gave an example of residents in remote locations who
are frustrated and stymied by "this efficiency."
REPRESENTATIVE RASMUSSEN suggested residents would need
assistance "on how to navigate DNR because it's kind of
confusing looking at the recorder's office."
2:28:28 PM
MS. PETER-CONTESSE acknowledged walk-in offices are best and DNR
has concerns about [serving] members of the mining community who
prefer to come to the office. Although she said she supports
the offices, she asked, "... are they the most efficient use of
the dollars that we bring into the State of Alaska ...?"
REPRESENTATIVE SPOHNHOLZ asked for clarification of the "hard
copy" of plats kept on file.
MS. PETER-CONTESSE expressed her belief plat files would not be
electronic files; plat files are available electronically, but
the document of record is in Mylar.
REPRESENTATIVE SPOHNHOLZ stated it is important to aspire to
efficiency, but efficiency is not always the gold standard of
performance; she cautioned against efficiencies that mar the
quality of a product, in fact, the recorder's offices provide an
essential service upon which the state economy relies.
REPRESENTATIVE RASMUSSEN related her business use of the
recorder's office is primarily through its website; she urged
DNR to inform the public of alternative resources such as
services provided by title companies.
CO-CHAIR TARR inquired as to whether the positions identified
during the presentation are budgeted in the "FY 19 Management
Plan" and are filled positions or authorized positions.
2:33:52 PM
MR. GOODRUM responded the positions are budgeted positions in
the "fiscal year 19 budget plan."
CO-CHAIR TARR asked whether there are concerns about hiring and
retaining staff due to the uncertain future for some positions
and divisions.
MR. GOODRUM acknowledged a stable and predictable budget is
important to retain a workforce; DNR's ability to attract and
retain skilled employees has become challenging. He stressed
vacancies equate to "lost capacity" for all department.
MS. PETER-CONTESSE clarified the 236 forestry positions consist
of permanent fulltime and permanent seasonal positions; in
addition, DOF hires emergency firefighters and [U.S. Forest
Service Interagency Hotshot Crews]. Of 901 [DNR] management
plan positions, 624 are permanent fulltime, and of those, 56
were vacant as of 1/31/19. She pointed out recruitment for
foresters is chronically difficult and the state cannot compete
with the private sector to recruit expertise for jobs in oil and
gas positions.
CO-CHAIR TARR reviewed topics that need clarification.
2:41:41 PM
ADJOURNMENT
There being no further business before the committee, the House
Resources Standing Committee meeting was adjourned at 2:41 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Department of Natural Resources Program Guide Updated November 2018.pdf |
HRES 2/27/2019 1:00:00 PM |
Department of Natural Resources |
| Department of Natural Resources Overview HRES 2019.pdf |
HRES 2/27/2019 1:00:00 PM |
Department of Natural Resources |