Legislature(2021 - 2022)BARNES 124
02/22/2021 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 | |
| Overview(s): Dept. of Natural Resources | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE RESOURCES STANDING COMMITTEE
February 22, 2021
1:01 p.m.
MEMBERS PRESENT
Representative Josiah Patkotak, Chair
Representative Zack Fields
Representative Grier Hopkins
Representative Calvin Schrage
Representative Sara Hannan
Representative George Rauscher
Representative Mike Cronk
Representative Ronald Gillham
Representative Tom McKay
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
OVERVIEW(S): DEPT. OF NATURAL RESOURCES
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
CORRI FEIGE, Commissioner
Department of Natural Resources
Anchorage, Alaska
POSITION STATEMENT: Offered an overview of the work that the
Department of Natural Resources does.
BRENT GOODRUM, Deputy Commissioner
Department of Natural Resources
Anchorage, Alaska
POSITION STATEMENT: Co-presented a PowerPoint overviewing the
divisions of the Department of Natural Resources with Deputy
Commissioner Sara Longan.
SARA LONGAN, Deputy Commissioner
Department of Natural Resources
Anchorage, Alaska
POSITION STATEMENT: Co-presented a PowerPoint overviewing the
divisions of the Department of Natural Resources with Deputy
Commissioner Brent Goodrum.
MARTY PARSONS, Director
Division of Mining, Land, and Water
Department of Natural Resources
Anchorage, Alaska
POSITION STATEMENT: Responded to questions during the
PowerPoint about the aquatic farm leasing program.
RICKY GEASE, Director
Division of Parks and Outdoor Recreation
Department of Natural Resources
Anchorage Alaska
POSITION STATEMENT: Responded to questions during the
PowerPoint presentation about projects his division is
undertaking.
ACTION NARRATIVE
1:01:54 PM
CHAIR JOSIAH PATKOTAK called the House Resources Standing
Committee meeting to order at 1:01:54 p.m. Representatives
Patkotak, Hopkins, Schrage, Hannan, Rauscher, Cronk, Gillham,
and McKay were present at the call to order. Representative
Fields arrived as the meeting was in progress.
CHAIR PATKOTAK introduced himself to the committee and asked
each member to offer a brief history on his/her district's and
personal interest in state resource management.
CHAIR PATKOTAK brought about the first order of business, the
nomination of a vice chair for the Committee.
REPRESENTATIVE HANNAN nominated Representative Hopkins.
CHAIR PATKOTAK declared that there being no objection,
Representative Hopkins was the vice chair.
REPRESENTATIVE HOPKINS thanked the committee.
CHAIR PATKOTAK moved on and addressed some memos sent out to
committee members over the weekend. The first was from the
Rules Chair regarding bill hearing requests and committee
protocols. The second was from Chair Patkotak himself regarding
amendments and protocols for legislation brought before the
House Resources Standing Committee. He encouraged committee
members to reach out to his office with any questions.
REPRESENTATIVE RAUSCHER asked if it would be objectionable to
propose an amendment during a meeting rather than having it
drafted beforehand by Legislative Legal Services.
CHAIR PATKOTAK said those could be worked through on a case-by-
case basis and offered to address protocol issues outside of the
meeting.
^OVERVIEW(S): Dept. of Natural Resources
OVERVIEW(S): Dept. of Natural Resources
1:10:55 PM
CHAIR PATOKTAK announced that the only order of business would
be the overview of the Department of Natural Resources(DNR).
1:11:32 PM
CORRI FEIGE, Commissioner, Department of Natural Resources,
offered an overview of the work the Department of Natural
Resources (DNR) does. She explained that DNR connects Alaskans
and gives them access and utilization of state lands, waters,
and resources. Alaska is 586,412 square miles, she continued,
making it twice the size of Texas and larger than all but 18
sovereign nations. Despite being 60 years after statehood,
Alaska is owed 4.5 million acres of statehood entitlement lands
from the federal government, and closing this gap is one of
DNR's mandates. The department's mission is to develop,
conserve, and maximize Alaska's natural resources in a way that
is consistent with the public interest. This requires that the
department be highly transparent, accountable, and balanced in
its decision making and stewardship.
COMMISSIONER FEIGE then explained that DNR is responsible for
management of roughly 165 million acres of state public land.
This includes activities such as state land sales, leasing for
oil and gas, geothermal and mineral development, and commercial
land leasing focuses such as big game guide camps, mariculture,
and solar and wind farms. The department is also responsible
for the permitting and regulatory oversite of many of these same
activities. She further stated that DNR is also responsible for
water management, timber sales, wildland firefighting,
agricultural development, outdoor recreation management, and the
identification and monitoring of potential geologic hazards such
as volcanos and landslides.
COMMISSIONER FEIGE stressed that all these services are relied
upon by Alaskans. She noted that 2019 was an exceptionally
difficult fire season, and that in the wake of the COVID-19
pandemic, 2020 saw record breaking use of parks and recreational
facilities. All nine of DNR's divisions have transitioned to
remote work in response to the pandemic and have migrated as
many functions online as possible. However, she continued, the
doors were kept open to the public in a COVID-19 safe manner in
places that could not operate remotely.
CHAIR PATKOTAK thanked Commissioner Feige for the overview.
1:15:42 PM
BRENT GOODRUM, Deputy Commissioner, Department of Natural
Resources, co-presented a PowerPoint overviewing the divisions
of the Department of Natural Resources with Deputy Commissioner
Sara Longan. He reiterated Commissioner Feige's point that
throughout the Covid-19 pandemic, DNR has worked to be nimble,
resourceful, and responsive to the needs of the people it serves
and to keep the state's economy moving along, and it has
remained open for business.
DEPUTY COMMISSIONER GOODRUM then moved on to the presentation
with slide 2, entitled "Department of Natural Resources:
Organization Chart." This slide showed the organization's
structure, including department heads and the nine subdivisions
within DNR. He explained that the organization of the
presentation aligned with information previously shared in the
department's program guide.
DEPUTY COMMISSIONER GOODRUM directed attention to slide 3,
"Division of Agriculture." He began by citing the division's
mission: "To promote and encourage development of an agriculture
industry in the State," and mentioned that it is lead by
Director David Schade. He then explained that the division
works to protect Alaska's natural resources and ecosystems
through invasive plant, pest, and pathogen detection eradication
and management programs. He said DNR has also worked to
strengthen Alaska food security through activities at the Plant
Materials Center, and state and United States Department of
Agriculture(USDA) agriculture production programs. Inspectors
from DNR's Division of Agriculture continued work throughout the
COVID-19 pandemic to help the flow of local produce within the
state, as well as phytosanitary inspections that made it
possible to export over $100 million of logs and peonies in
2020.
1:17:33 PM
DEPUTY COMMISSIONER GOODRUM directed attention to slide 4. He
stated that the Division of Agriculture works to provide all
Alaskan natural resource industries and adjacent state agencies
with supporting technical service and native plants for
reclamation projects associated with construction, mining, oil
and gas activities, and other such interests. The division has
recently established the Industrial Hemp program and has
revamped market and grant services programs. He then
highlighted the success of the Elodea project, which is believed
to have eradicated 70 percent of Elodea in Sucker Lake complex.
1:18:15 PM
DEPUTY COMMISSIONER GOODRUM then began the portion of the
presentation on the Division of Forestry, which is headed by
Acting Director Tim Dabney. He directed attention to slide 5,
sub-headed "Forest Management and Development," which read as
follows [original punctuation provided]:
Mission: To develop, conserve, and enhance Alaska's
forests to provide a sustainable supply of forest
resources for Alaskans.
Sold 31 commercial timber sales and manages 47 million
acres of forests on state land including three state
forests.
? Implementation of the Forest Resources and Practices
Act on private lands supported the harvest of 127.5
million bd feet of logs valued at $124.3 million in
the export markets.
? The Alaska Roadless Rule process came to conclusion
with the successful removal of roadless designation on
9.3 million acres on the Tongass National Forest.
? Completed upgrades to the Vallenar Bay road ($400.0)
in support of the Good Neighbor Authority timber sale
on Gravina Island, a joint timber sale project with
the USFS.
DEPUTY COMMISSIONER GOODRUM directed attention to slide 6, sub-
headed "Wildland Fire Management," which read as follows
[original punctuation provided]:
? 348 fires burned 181 thousand acres as compared to
last season when 2.5 million acres were blackened.
? Alaska Incident Management Teams (IMT), crews and
individual resources provided much needed support to
the L-48 states during their "fire year."
? The Alaska Type I IMT deployed to CO to manage the
Grizzley Ck Fire and to CA to the August Complex, the
largest in the state.
? Emergency Fire Fighter (EFF) crews and individuals
earned $3.5 million in wages
? Cost recovery efforts to date in FY21 have collected
$2.1 million from parties responsible for fires.
DEPUTY COMMISSIONER GOODRUM noted that in 2020 wildland
firefighting was a major concern due to the safety challenges of
the COVID-19 pandemic. The division worked with the Department
of Health and Social Services (DHSS) to establish effective
COVID-19 protocols for both team members and out of state
resources.
1:21:35 PM
REPRESENTATIVE HANNAN asked about the status of federal cost
recovery for the 2019 fire season, acknowledging that it is a
multi-year process.
DEPUTY COMMISIONER GOODRUM replied that [the Division of
Forestry] is working with the federal government to be
reimbursed. He noted that there were four major fires that year
that qualified for reimbursement, and the division anticipates
over $30 million in reimbursement funds. He said here is still
some time left on that process, however.
1:22:52 PM
REPRESENTATIVE RAUSCHER commented that a bill had been passed
that allocated 25 percent of federal timber sales go to schools.
He inquired if that was still current.
DEPUTY COMMISIONER GOODRUM replied that he is not certain of the
answer to that question but is happy to research the issue and
get an answer back to Representative Rauscher at a later time.
1:23:43 PM
SARA LONGAN, Deputy Commissioner, Department of Natural
Resources, , as co-presenter of the PowerPoint overviewing the
divisions of DNR, continued onto slide 7, the first in a series
of slides offering an overview on the Division of Geological and
Geophysical Surveys (DGGS) which is headed by Director Steve
Masterman in Fairbanks, with supplemental offices in Anchorage.
The sub-headings on the slides are the sections within DGGS, she
explained, and each has recent accomplishments listed. Slide 7
read as follows [original punctuation provided]:
Mission: To 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.
Mineral Resources
? Helicopter airborne geophysical survey near Pogo
flown and published
? Contracted for additional 35,000 sq km of airborne
geophysical surveys
? Publications include new geologic maps and mineral
resources reports
for the Denali Highway, Tok River, and Mount Fairplay
areas
Energy Resources
? Rescheduled fieldwork to 2021 due to COVID-19
? Published reports on North Slope and Cook Inlet
petroleum systems
? Released structure-from-motion data covering
outcrops of the Nanushuk Formation on the North Slope
and Usibelli Group in the Nenana basin
State Geospatial Program
? Hired a GIO to support inter-agency GIS
coordination, which reinvigorated the Alaska
Geospatial Council
? New statewide satellite imagery acquisition (50-cm
resolution)
? State Geoportal launched for all agency GIS data
1:26:46 PM
REPRESENTATIVE HANNAN thanked Deputy Commissioner Longan and her
staff with DGGS on the record for their response and expertise
to the December landslide that was fatal in Haines. The ability
to produce equipment, scientific experts, and emergency
responders was critical. While the ongoing efforts are complex,
she stated, the expertise and aid DGGS provided was reassuring
to the community.
1:27:34 PM
REPRESENTATIVE HOPKINS thanked Deputy Commissioner Longan for
discussing DGGS and noted the division does important work
mapping out where future resource development may happen. He
inquired how DGGS decides where to go next.
DEPUTY COMMISSIONER LONGAN explained that DGGS works with
government partners, experts in industry, and the public to
understand where the private sector might be interested in
conducting exploration programs. She offered DGGS's work on the
Nanushuk Formation as one example, as it interested private
sector teams in where to go. She explained that division's
technical work helped these companies know where to locate
specific minerals and may lead to successful drilling for oil
and gas wells. It is an ongoing collaborative and effort, she
concluded, and DGGS focuses its efforts on those interests
brought to its attention.
1:29:01 PM
COMMISSIONER FEIGE added Deputy Commissioner Longan's response,
stating that on the mining side, DNR works closely with the
United States Geologic Survey (USGS). She explained that
certain areas of the state are prospective for certain metal
groups. In working with the USGS through programs like Earth
Mapping Resource Initiative (MRI), the state can leverage
federal and state funds towards mapping areas of resource
potential. The division is then able to make that data
available to private sector.
REPRESENTATIVE HOPKINS asked if that meant the department
received interest along the Denali Highway, the Tok River, and
the Mount Fairplay areas already.
COMMISSIONER FEIGE responded by confirming interest in these
areas. She noted that the Mount Fairplay area is known for its
rare earth element potential, and the Denali Highway is known
for platinum group elements in addition to other critical
minerals. This is particularly important when it comes to
targeting, she explained, because then state and industry
geologists can develop the geologic map level of data.
1:31:04 PM
DEPUTY COMMISSIONER LONGAN then moved to slide 8, which read as
follows [original punctuation provided]:
Engineering Geology
? Continued ASTAR sand and gravel resource analysis of
western NPRA in support of community roads
? Responded to landslide events in Barry Arm and
Haines
? Published erosion maps for more than 40 west coast
communities.
Geologic Information
? Published 87 new geologic maps and reports,
including 2,015 square miles of new geologic mapping
? Served 1.04 million data and publication files from
the division's website totaling more than 32 terabytes
of information
Volcanology
? Upgraded volcano monitoring instruments at 142 sites
on 12 volcanoes
? Expanded and increased digital data telemetry
capability at 2 receive facilities and 5 repeater
sites in the Aleutians and the Alaska Peninsula
? Published 386 notices of volcanic activity
describing daily observations of unrest at 8 volcanoes
Geologic Materials
? Negotiated agreement to receive >38,000 boxes of oil
and gas cores from a major Alaska producer
? Reduced visitation due to COVID-19 allowed re-
organization of materials
1:34:14 PM
DEPUTY COMMISSIONER LONGAN then moved to slide 9, entitled
"Geological & Geophysical Surveys: Planned for 2021," which read
as follows [original punctuation provided]:
Resource Development
? Fly three Earth MRI-funded airborne geophysical
surveys in the Eastern Interior
? Complete ~2,440 sq. mi. of geologic mapping in the
Eastern Interior
? Map ~750 sq. mi in the central North Slope focusing
on Brookian geology
? Collaborate with the U.S.G.S. to drill two core
holes in the North Slope foothills
? Publish major reports on the reservoir quality and
potential of the Nanushuk Formation in NPR-A
? Conduct the first modern lake volume assessment of
lakes in the 1002 Area of the ANWR
Hazards and Public Safety
? Continue upgrading volcano monitoring instruments on
high threat volcanoes
? Publish tsunami inundation reports and present to
communities
? Publish the first regional avalanche hazard maps for
southeast and south-central Alaska.
? Establish a landslide hazards program in DGGS
? New federally funded project to boost resilience in
communities facing flood and erosion hazards
Data Delivery
? Establish web services for statewide imagery data
? Increase data accessibility e.g., provide web
services for stream sediment analyses in Eastern
Interior
? Publish new bedrock geology maps for the Styx River
and Eastern Tanacross areas
1:35:55 PM
REPRESENTATIVE FIELDS noted that he is interested in learning
about the upcoming avalanche hazard maps, for Anchorage in
particular. He did not need a response at this time.
1:36:08 PM
DEPUTY COMMISSIONER GOODRUM began the next set of slides focused
on the Division of Mining, Land & Water, led by Marty Parsons.
Slide 10 read as follows [original punctuation provided]:
Mission: Provides for the appropriate use and
management of Alaska's state-owned land and water,
aiming towards maximum use consistent with the public
interest.
? The Division of Mining, Land & Water (DMLW) manages
more than 160 million acres a land base comparable
in size to California and most of Oregon combined.
? DMLW supports core missions of the Department
including acquiring and disposing of land and
resources; providing use of and access to state lands
for the public; fostering responsible development of
lands; managing resource data; and protecting the
State's natural resource assets consistent with the
public interest.
DEPUTY COMMISSIONER GOODRUM next moved onto slide 11, sub-headed
"In FY2020," which read as follows [original punctuation
provided]:
? Generated $30.7M in revenues to the state through
authorizations for use of state lands and waters,
royalty payments, and land sales
? A total of 3,177.85 acres of municipal entitlement
land was conveyed to 5 different Boroughs
? Brought in 25,087 acres of statehood entitlement
lands
? Sold 194 parcels of land, totaling approximately
2,374 acres of land
? Generated $5.6M in revenue from land sales for the
Land Income Disposal Fund
? Issued the Public Review Draft of the North Slope
Area Plan, a plan covering approximately 12.5 million
acres of land, for an area that has never before had a
regional plan developed
? With the assistance of the Alaska Army National
Guard, Bus 142, made famous from the book and movie
"Into the Wild," was removed from the spot where it
was abandoned off the Stampede Trail near Healy,
Alaska
? Entered into a formal long-term curation Memorandum
of Understanding with University of Alaska Museum of
the North in Fairbanks to begin the restoration and
conservation of this fascinating piece of Alaska
history
DEPUTY GOODRUM continued onto slide 12 which outlined more of
the division's 2020 accomplishments. He noted that recreation
opportunities, broadband, and mining authorizations are just a
few of the authorizations the division is responsible for. He
also explained that under the emergency declaration the division
was able to suspend various fees by request to better assist
Alaskans hardest hit by the COVID-19 pandemic. He concluded by
adding that the division is responsible for authorizations in
the aquatic farming industry and on the North Slope.
1:38:42 PM
REPRESENTATIVE RAUSCHER asked how the division monitored the
number of users in the Kenny and Patti Barber Shooting Range.
DEPUTY COMMISSIONER GOODRUM replied that personnel work out of
the area, and there are means of monitoring who enters the
shooting range, and those methods are used to count usage.
1:39:31 PM
REPRESENTATIVE HANNAN asked about the aquatic farm leasing
program backlog and how many pending applications are left.
1:40:06 PM
MARTY PARSONS, Director, Division of Mining, Land, and Water,
Department of Natural Resources, answered that there are
currently 45 applications.
REPRESENTATIVE HANNAN followed up asking how old the earliest of
the applications is. She noted that there was a substantial
backlog and wanted to know if some applications were still three
years pending.
MR. PARSONS responded that there are still a few applications
dating back to 2017.
1:41:01 PM
REPRESENTATIVE MCKAY asked to clarify a number from slide 12, if
$501.4 million was suspended.
DEPUTY COMMISSIONER GOODRUM responded that the number was
$501,400. He clarified that was thousands, not millions.
1:41:44 PM
REPRESENTATIVE RAUSCHER asked how far away Alaska is from
opening a seventh large mine.
DEPUTY COMMISSIONER GOODRUM responded that there are many
smaller mines that the state almost considers to be the
equivalent of a large mine. He pointed out that the Donlin Gold
Project successfully made its way through the federal permitting
process, along with the Ambler Road Project. He explained that
permitting of large mines takes a considerable amount of time.
He also noted that in active mining locations there has been
expansion of activities. However, he finished, he could not
give an exact time frame.
REPRESENTATIVE RAUSCHER thanked Deputy Commissioner Goodrum for
his explanation and asked to meet at a future time to discuss
this.
1:43:31 PM
DEPUTY COMMISSIONER LONGAN began the next section of slides
about the Division of Oil & Gas. She presented slide 13 which
read as follows [original punctuation provided]:
Mission: Manage lands for oil, gas & 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 &
environmentally conscious operation & maintenance of
common carrier pipelines.
In FY2020
? Verified and receipted $1.0 billion in royalty, net
profit share lease revenues, rents, bonus bids, unit
actions, and federal payments
? Held five area-wide lease sales resulting in $7.7M
in bonus bids and more than 150,000 acres leased
? Collected $20.5 million in lease rentals on 1,548
leases
? Issued six net profit share lease audits and one
state royalty audit, collecting $7.5 million including
interest
? Expanded the boundary of the Cook Inlet sale area to
include an additional 169,000 acres of leasable tracts
on and around the Iniskin Peninsula
? Continued releasing seismic and well datasets for
oil and gas exploration projects that received tax
credits under AS 43.55.025 through the Alaska Geologic
Materials Center, with fee structure covering DNR's
admin costs
DEPUTY COMMISSIONER LONGAN continued to present slide 14 which
read as follows [original punctuation provided]:
In FY2020
? Reviewed and approved four new unit applications:
Alkaid Unit, Talitha Unit, Seaview Unit, and West
Harrison Bay Unit.
? Implemented online lease bidding system and
successfully held its first online lease sale event.
? Administered approximately 2,000 leases and
licenses, covering nearly 4.2 million acres.
? Issued 110 permits and amendments to authorize
surface activities for exploration and development on
State land
? Negotiated two new financial assurance agreements
and amended four major financial assurance agreements
with North Slope and Cook Inlet lessees to ensure
dismantlement, removal, and restoration occur on the
State's leased land.
? Published the final Best Interest Findings for the
Beaufort Sea Areawide, the Supplement to the Cook
Inlet Areawide and the preliminary finding for the
Gulf of Alaska Exploration License.
? Evaluated and interpreted data for the Public 2D
Seismic Data, Northern Gulf of Alaska, Katalla Area
project to identify structures and potential reservoir
traps.
1:46:36 PM
DEPUTY COMMISSIONER LONGAN continued onto slide 15, "BP &
Hilcorp Transaction" which read as follows [original punctuation
provided]:
? $5.6B of upstream and midstream interest sale
announced on August 27, 2019.
? On June 29, 2020, the commissioners of Alaska's
Department of Natural Resources (DNR) and Department
of Environmental Conservation approved the transfer of
BP's oil and gas leases to Hilcorp as part of the $5.6
billion sale.
? On September 21, 2020, the midstream was completed.
It was determined Harvest Alaska was fit, willing, and
able to take on the respective responsibilities and
obligations for TAPS, Milne Pipelines, PTEP, and
Badami Pipelines.
? DNR economists analyzed Hilcorp's economic models
for the acquisition on the upstream and the midstream
sides of the deal. The National Economic Research
Association also did its own analysis of the upstream.
? Negotiated financial assurance agreements to
adequately protect the State for Hilcorp and Harvest's
respective upstream and midstream dismantlement,
removal, and restoration (DR&R) obligations.
? Negotiated separate agreements with BP Corporation
North America and BP Pipelines (Alaska) Inc for their
respective secondary liability of upstream and
midstream DR&R obligations.
DEPUTY COMMISSIONER LONGAN further noted that all the
information from all the public meetings is available on the
Division of Oil& Gas's website.
1:48:23 PM
DEPUTY COMMISSIONER LONGAN next introduced the Office of Project
Management & Permitting (OPMP) which is led by Director Kyle
Moselle in Juneau. She directed attention to slide 16 which
read as follows [original punctuation provided]:
Mission: Coordinate 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.
The Office of Project Management & Permitting (OPMP)
supports private industry, regulators, and the general
public by coordinating multi-agency project reviews to
secure consistent, defensible, transparent, and timely
permit decisions.
This model is unique to Alaska and offers a level of
assurance to the public and companies investing in
Alaska that permit reviews are robust and transparent.
DEPUTY COMMISSIONER LONGAN next presented slide 17. She
explained that OPMP coordinates many of Alaska's largest
projects, including oil & gas, mining, and transportation. She
also noted OPMP's contribution to the Large Mine Permitting Team
(LMPT), comprised of regulators from multiple state agencies, is
responsible for coordinating the permitting compliance of all
active mines in Alaska. She next referred to the list on the
slide of federal actions that OPMP had coordinated, noting that
OPMP serves as a unified voice representing many state agencies.
She offered the Coastal Plain Oil & Gas Leasing Program, the
National Petroleum Reserve in Alaska (NPR-A) Integrated Activity
Plan, and the Central Yukon Resource Management Plan as examples
of what OPMP has coordinated. Deputy Commissioner Longan also
pointed out that many of the federal projects OPMP engages in
are multi-year endeavors. She continued that OPMP has been
responsible for community outreach on the Arctic Strategic
Transportation and Resources (ASTAR) project, working closely
with the North Slope Borough and its communities.
1:52:10 PM
DEPUTY COMMISSIONER GOODRUM clarified an earlier question from
Representative Rauscher about timelines to open a new mine. The
project, he explained, has scheduled five years of construction
prior to start up, and the Golden Peak Tetlin Project by Kinross
Gold Corp. anticipates a start-up sometime in 2024-2025.
DEPUTY COMMISSIONER GOODRUM then continued to an overview of the
Division of Parks & Outdoor Recreation, led by director Ricky
Gease, on slide 18. He began with the division's mission,
stating that it "provides outdoor recreation opportunities and
conserves and interprets natural, cultural, and historical
resources for the use, enjoyment, and welfare of the people."
He noted that the division operates the largest state park
system in the United States, and prioritizes public protection,
economic development, education, and resource management by
providing access to Alaska's world class outdoor recreation.
DEPUTY COMMISSIONER GOODRUM explained that park facilities
provided health, wellness, refuge, and relief from the isolation
of the "Hunker Down" orders. Without tourists, he opined,
Alaskans were able to rediscover what makes Alaska beautiful and
unique. He informed the committee that during the pandemic,
state park use increased in Alaska by 20 percent, almost
exclusively all Alaskan users. The division launched an
improved reservation system, issued permits and recreational
grants, installed additional electronic fee stations, thus
reducing additional money handling in the COVID-19 environment.
Park rangers assisted in over 60 search and rescue missions, and
the boating safety class taught safety lessons virtually. Last,
he concluded, the State Historic Preservation Office reviewed
over 2,000 projects and signed 14 major project related
agreements.
1:54:58 PM
REPRESENTATIVE RAUSCHER asked about a boat launch in the Gulkana
area, stating that there was a trade for some land, and a boat
launch was in question. He asked for clarification on any
agreement that may have transpired.
MR. GOODRUM offered his understanding that the Department of
Transportation & Public Facilities (DOTPF) once acquired land
that had belonged to the Eklutna village, and those lands were
later returned as part of a right-of-way that existed some time
ago. His understanding is that the boat launch area is still in
its current location. He believes there is some anticipated
work to help improve access, but those lands have been returned
to the Eklutna people.
1:56:20 PM
REPRESENTATIVE HANNAN asked how many additional electronic fee
stations are still on the list to add and how close the division
is to completing that to-do list.
1:57:01 PM
RICKY GEASE, Director, Division of Parks and Outdoor Recreation,
Department of Natural Resources, responded that the division is
about half-way through efforts to put electronic fee stations in
places such as boat launches and parking areas, as it is
important to remove cash handling and remove opportunities for
theft. These programs for the electronic fee stations are
either funded through capital budgets or with additional
revenues through general fund designated program receipts (GFPR)
monies. The division makes investments as they have
opportunities, he explained.
REPRESENTATIVE HANNAN said that sounds great.
1:58:03 PM
REPRESENTATIVE FIELDS complimented the Division of Parks and
Outdoor Recreation on a great job keeping the parks open and
giving individuals a chance to socialize safely outside during
the pandemic. He stated that use in Anchorage was overwhelming.
He then asked how many cabins in the state park system the
division was planning to build in the future.
MR. GEASE replied there are opportunities probably for about 30-
40 more. Those are opportunity based through GFPR funds or
grants such as the Land Water Conservation Fund and the
Recreational Trails programs. The division tries to match those
funds with available funds with the legislature through capital
improvement projects, he explained.
REPRESENTATIVE FIELDS thanked Mr. Gease for his response. He
then inquired about trail access equality for lower income
citizens and families who cannot afford user fees.
MR. GEASE replied that the parks have free days including the
day after Thanksgiving. He also noted the Kids in the Park
Program. He further assured the committee that the division is
aware of the disparities and tries to provide opportunities for
all users in Alaska. He also noted that there are free
campground passes for disabled veterans nationwide.
REPRESENTATIVE FIELDS further pressed that there may be families
below a certain income threshold who cannot afford park use. He
asked if a low-income exemption or discount could help more
members of the public enjoy state parks without having a large
negative impact on revenue.
2:01:37 PM
REPRESENTATIVE GILLHAM noted that the slide said the division
issued 412 commercial permits in 2020, and that seemed low for
the state. He also asked for information regarding the 259
special permits.
MR. GEASE explained that during a typical year the state issues
600-700 commercial use permits, and that is about a one-third
dip on commercial use permits. He attributed this to the
absence of cruise ship traffic last season and the lack of out-
of-state travelers due to the COVID-19 pandemic. The division
anticipates similar numbers in 2021 but expects those numbers to
go back up as the travel industry recovers.
MR. GEASE said that special use permits cover a wide variety of
events and activities, such as group events, special use days,
and firewood harvesting. Many things need special use permits,
he explained, and those are usually done through the regional
headquarter offices.
2:04:11 PM
DEPUTY COMMISSIONER GOODRUM directed attention to slide 19,
"Support Service Division" which read as follows [original
punctuation provided]:
Mission: Provide client-focused, efficient, and cost-
effective financial, budget, procurement, human
resource, information technology and recording
services to the Department of Natural Resources and
the public.
?Successfully served our customers during the pandemic
by creating and improving processes.
Recorders Office increased eRecording's and retained
services levels with an overall increase in revenue.
Numbers by Fiscal Year:
FY2019 - $4,503,083
FY2020 - $5,438,244
FY2021 - $3,579,484 (1/2 way through year)
? Continue to work with DOA to consolidate procurement
and human resources to ensure a smooth and stable
transition that will bring standardized processes
across all agencies.
2:05:17 PM
DEPUTY COMMISSIONER LONGAN introduced slide 20, "Trust Land
Office," which read as follows [original punctuation provided]:
Mission: Protect and enhance the value or Alaska
Mental Health Trust Lands, including minerals, coal,
oil and gas, timber and real estate, while maximizing
revenue from those lands over time to support mental
health services.
Generating revenue for the Alaska Mental Health Trust
to improve lives of its beneficiaries
? Generated $11.5 M to fund programs for ~85,000
Alaska Mental Health Trust beneficiaries
? Completed sale of 3-acre Juneau Subport parcel for
$20 million (included in FY21)
? Completed Phase 2A of the USFS/Trust land exchange
and sold timber from those lands
? Viking Lumber harvested 13.4 mmbf of timber at
Naukati generating $1.8 million in FY20
? Sealaska completed the Icy Cape timber harvest in
FY20 generating $3.7 million from the sale
DEPUTY COMMISSIONER LONGAN continued discussing the Trust Land
Office with slide 21, which read as follows [original
punctuation provided]:
Initiatives
? Created new online commercial leasing program
? Created new exclusive access permit program for
professional hunting guides
? Created new online general permit for certain uses
of Trust land
Coming in FY2021
? Finish Phase 2B of the USFS Land
Exchange
? Further Exploration of Icy Cape Mineral Project
2:07:15 PM
DEPUTY COMMISSIONER LONGAN finished the presentation with slide
22, "Commissioner's Office," which read as follows [original
punctuation provided]:
? Reducing backlog of administrative appeals
adjudicated 52 in 2019.
? Actively promoting Alaska resources to global
investors.
? Enhanced federal engagements to further assertion of
state's
authority over submerged lands and RS2477 protection.
? Working effectively with other resource agencies to
ensure protection of State's rights and assertion of
rights under ANILCA
2:08:46 PM
REPRESENTATIVE RAUSCHER asked if there are any state lands
adjacent to electric utility rights of way and how vegetation on
those lands is managed between utilities and the state of
Alaska.
COMMISSIONER FEIGE responded that she assumes his concern
regards the clearing of potential hazard trees that can fall on
powerlines and cause wildfires. She offered her understanding
that local utilities are responsible for clearing hazard trees
and other vegetation that may pose a wildland fire hazard. In
2019, especially in the Matanuska-Susitna (Mat-Su) Valley where
there is a large, standing dead spruce beetle kill population of
trees, DNR worked with the Matanuska Electrical Association
(MEA) to contract private landowners if something could pose a
fire hazard. This land is then cleared by the Division of
Forestry. This is part of the governor's bond package. The
department is establishing a fire fuel mitigation program, which
is in direct response to the 2019 fire year. During 2019, she
said, fuel breaks were important for stopping the progress of
major fires. The department is actively setting up a very large
program and is working to determine areas in the state where it
needs to establish fire fuel breaks in order to guard the
urban/wildland interface.
2:11:41 PM
COMMISSIONER FEIGE, in response to a follow up question from
Representative Rauscher, replied that [the Division of
Agriculture] has been working very hard and has made food
security the number one priority during the COVID-19 crisis.
Just in the past week the division has received 2,600
applications for microgrants. Many of these are for
establishing things like community gardens and expansion of
neighborhood or private gardens, specifically for the purpose of
food security. She concluded that DOA and the Division of
Agriculture would be happy to return to present these projects
to the committee.
2:13:02 PM
REPRESENTATIVE HOPKINS thanked the commissioner for mentioning
the $20 million in the bond package for fire breaks and
mitigations. He noted that another $10 million had been
allocated for fire prevention in addition to fire suppression.
He then said he would like the Division of Forestry to discuss
what this will look like with the committee when they have an
opportunity to present later in the session.
2:14:09 PM
REPRESENTATIVE CRONK explained that firefighting was once a big
source of income in his district. He opined that he does not
think village fire crews are being used to their maximum benefit
and commented that instead money is being spent on [out of state
fire] crews. He would like to reverse that trend and return a
fire academy to Tok, where he believes one was once very
successful. He asked who he needs to work with to accomplish
this, stressing the need to focus on getting villagers back to
work.
COMMISSIONER FEIGE said she would connect Representative Cronk
with the Division of Forestry and explained that changes at the
federal level have directly impacted Alaska's ability to utilize
the crews from remote communities. She stated that DNR agrees
that putting those crews back to work is crucial and would work
with him to reestablish that program.
2:16:28 PM
REPRESENTATIVE HANNAN stated that the Division of Mining, Land &
Water has a set of regulations about public water use permitting
out for public comment that has "started to rattle" some of her
constituents. She wondered how the regulations may affect many
communities that use local water sources but have never put in
an application, because they always presumed that they had the
right of use.
COMMISSIONER FEIGE explained that those regulations are still
out for public comment, and therefore she cannot respond in
detail at this time. However, she assured Representative Hannan
that it is not the department's intent to make this harder for
water users, and that the public comment period is meant to be a
clarification of process. She reiterated the importance of
public comment, asking Representative Hannan to encourage her
constituents to testify. Commissioner Feige then assured
Representative Hannan she would be happy to sit down to discuss
this in greater detail after the public comment phase has
concluded.
REPRESENTATIVE HANNAN asked this regulation proposal package
intercepts with the Alaska Department of Fish and Game (ADFG)
and the Department of Environmental Conservation (DEC), and if
those departments were part of the same public comment process.
COMMISSIONRE FEIGE said DNR is working with those two agencies,
and both ADFG and DEC are taking part in the same process.
2:20:30 PM
REPRESENTATIVE SCHRAGE asked about the third bullet point on
slide 12, which noted record high numbers for active
applications for different types of mining. He wondered what is
driving record high numbers.
COMMISSIONER FEIGE responded that the numbers are reflective of
several different factors. First, she noted, there are high
commodity prices presently. She also mentioned new policy
initiatives from the federal government in the last few years
[that are] relative to divesting the United States from a public
and national security perspective and away from sourcing
minerals from adversarial nations. Plus, she added, there has
been tremendous exploration success. Moreover, she concluded,
Alaska is highly ranked globally as a mineral investment and
mining friendly province.
2:22:10 PM
REPRESENTATIVE CRONK asked what the legislature can do to help
speed up developing a mine. He noted his excitement about the
Tetlin-Kinross partnership as this will produce jobs in his
district and give students a focus on education to help fill
those jobs.
COMMISSIONER FEIGE explained that mining permitting is
"authorization heavy." The National Environmental Policy Act
(NEPA) review is a large part of that. She explained that
mining has a larger footprint than oil and gas development and
there are [considerations for] water use, which leads to much
more required environmental documentation. One way the
legislature and House Resource Standing Committee can help is to
message the federal government that having a streamlined the
NEPA process that is robust, transparent, predictable, and is
not prone to "being taken off on a side tangent." Within the
state, exploration and mapping can be increased with more
funding.
COMMISSIONER FEIGE circled back to her answer to Representative
Schrage's question, noting that she referenced the Fraser Report
regarding Alaska's standing as global powerhouse in mineral
exploration and development.
2:24:59 PM
CHAIR PATKOTAK thanked Commissioner Feige and offered a synopsis
of follow-ups the committee expects to see from the department
regarding topics discussed in the meeting.
2:27:14 PM
ADJOURNMENT
There being no further business before the committee, the House
Resources Standing Committee meeting was adjourned at 2:27 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HRES DNR Overview 2.22.21.pdf |
HRES 2/22/2021 1:00:00 PM |