Legislature(1999 - 2000)

03/26/1999 03:05 PM Senate RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
              SENATE RESOURCES COMMITTEE                                                                                        
                    March 26, 1999                                                                                              
                      3:05 P.M.                                                                                                 
                                                                                                                                
MEMBERS PRESENT                                                                                                                 
                                                                                                                                
Senator Rick Halford, Chairman                                                                                                  
Senator Robin Taylor, Vice Chairman                                                                                             
Senator Lyda Green                                                                                                              
Senator Sean Parnell                                                                                                            
Senator Georgianna Lincoln                                                                                                      
                                                                                                                                
MEMBERS ABSENT                                                                                                                  
                                                                                                                                
Senator Pete Kelly                                                                                                              
Senator Jerry Mackie                                                                                                            
                                                                                                                                
OTHER MEMBERS PRESENT                                                                                                           
                                                                                                                                
Senator Jerry Ward                                                                                                              
Senator Randy Phillips                                                                                                          
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
SENATE BILL NO. 68                                                                                                              
"An Act relating to cooperation with federal programs relating to                                                               
management of fish and game."                                                                                                   
                                                                                                                                
     -MOVED CSSB 68(RES) OUT OF COMMITTEE                                                                                       
                                                                                                                                
SENATE CONCURRENT RESOLUTION NO. 7                                                                                              
Supporting the responsible development of the Tulsequah Chief Mine                                                              
through the cooperative effort of Alaska and British Columbia and                                                               
urging Governor Knowles to withdraw his request for a referral of                                                               
the Tulsequah Chief Mine to the International Joint Commission                                                                  
under the Boundary Waters Treaty.                                                                                               
                                                                                                                                
     -HEARD AND HELD                                                                                                            
                                                                                                                                
PREVIOUS SENATE COMMITTEE ACTION                                                                                                
                                                                                                                                
SB 68 - See Resources minutes dated 3/17/99.                                                                                    
                                                                                                                                
SCR 7 - No previous action to consider.                                                                                         
                                                                                                                                
WITNESS REGISTER                                                                                                                
                                                                                                                                
Mr. Brett Huber, Aide                                                                                                           
Senator Rick Halford                                                                                                            
State Capitol Bldg.                                                                                                             
Juneau, AK 99811-1182                                                                                                           
POSITION STATEMENT: Commented on SB 68.                                                                                         
                                                                                                                                
Lieutenant Howard Starbard                                                                                                      
Division of Wildlife Protection                                                                                                 
Department of Public Safety                                                                                                     
453 S. Valley Way                                                                                                               
Palmer, AK 99645                                                                                                                
POSITION STATEMENT: Supported CSSB 68(RES).                                                                                     
                                                                                                                                
Mr. Myles Conway, Assistant Attorney General                                                                                    
Department of Law                                                                                                               
1031 W. 4th Ave. Ste 200                                                                                                        
Anchorage, AK 99501-1994                                                                                                        
POSITION STATEMENT:                                                                                                             
                                                                                                                                
Mr. Geron Bruce, Legislative Liaison                                                                                            
Alaska Department of Fish and Game                                                                                              
P.O. Box 25526                                                                                                                  
Juneau, AK 99802-5526                                                                                                           
POSITION STATEMENT: Opposed SB 68.                                                                                              
                                                                                                                                
Senator Pearce                                                                                                                  
State Capitol Bldg.                                                                                                             
Juneau, AK 99811-1182                                                                                                           
POSITION STATEMENT: Sponsor of SCR 7.                                                                                           
                                                                                                                                
Mr. Norm Ringstad                                                                                                               
Project Assessment Director                                                                                                     
British Columbia                                                                                                                
POSITION STATEMENT: Supported SCR 7.                                                                                            
                                                                                                                                
Mr. Bob Carmichael, Vice President                                                                                              
Redfern Resources, Ltd.                                                                                                         
British Columbia                                                                                                                
POSITION STATEMENT: Supported SCR 7.                                                                                            
                                                                                                                                
Mr. Steve Borell, Executive Director                                                                                            
Alaska Miners Association                                                                                                       
3305 Arctic                                                                                                                     
Anchorage, AK 99503                                                                                                             
POSITION STATEMENT: Supported SCR 7.                                                                                            
                                                                                                                                
Mr. Wayne Weihing                                                                                                               
Tongass Conservancy                                                                                                             
P.O. Box 1193                                                                                                                   
Ward Cove, AK 99928                                                                                                             
POSITION STATEMENT: Opposed SCR 7.                                                                                              
                                                                                                                                
Mr. Mike Sallee                                                                                                                 
P.O. Box 7603                                                                                                                   
Ketchikan, AK 99901                                                                                                             
POSITION STATEMENT: Opposed SCR 7.                                                                                              
                                                                                                                                
Mr. Errol Champion                                                                                                              
Taku River Recreation Association (TRRA)                                                                                        
P.O. Box 295                                                                                                                    
Douglas, AK 99824                                                                                                               
POSITION STATEMENT: Commented on SCR 7.                                                                                         
                                                                                                                                
Mr. Eldon Dennis                                                                                                                
P.O. Box 20070                                                                                                                  
Juneau, AK 99802                                                                                                                
POSITION STATEMENT: Opposed SCR 7.                                                                                              
                                                                                                                                
Mr. Dick Myron                                                                                                                  
3320 Fritz Cove Rd.                                                                                                             
Juneau, AK 99801                                                                                                                
POSITION STATEMENT: Opposed SCR 7.                                                                                              
                                                                                                                                
Ms. Joan Jack                                                                                                                   
First Nations Tlingit                                                                                                           
Nakina C.A.L.L.                                                                                                                 
POSITION STATEMENT: Opposed SCR 7.                                                                                              
                                                                                                                                
Mr. Neil MacKinnon                                                                                                              
1114 Glacier Ave.                                                                                                               
Juneau, AK 99801                                                                                                                
POSITION STATEMENT: Supported SCR 7.                                                                                            
                                                                                                                                
Mr. Rich Davis                                                                                                                  
Seafood Producers Co-op                                                                                                         
2347 Kevin Ct.                                                                                                                  
Juneau, AK 99901                                                                                                                
POSITION STATEMENT: Opposed SCR 7.                                                                                              
                                                                                                                                
Mr. Jim Becker, President                                                                                                       
Juneau Chapter                                                                                                                  
Southeast Alaska Gillnetters Association                                                                                        
P.O. Box 240522                                                                                                                 
Douglas, AK 99284                                                                                                               
POSITION STATEMENT: Opposed SCR 7.                                                                                              
                                                                                                                                
Ms. Anisa Berry Frick                                                                                                           
P.O. Box 8118                                                                                                                   
Port Alexander, AK 99836                                                                                                        
POSITION STATEMENT: Opposed SCR 7.                                                                                              
                                                                                                                                
Mr. Micheal Dunlap                                                                                                              
Douglas Indian Association                                                                                                      
P.O. Box 240888                                                                                                                 
Douglas, AK 99824                                                                                                               
POSITION STATEMENT: Opposed SCR 7.                                                                                              
                                                                                                                                
Mr. Kerry Howard                                                                                                                
Division of Governmental Coordination                                                                                           
Office of the Governor                                                                                                          
P.O. Box 110030                                                                                                                 
Juneau, AK 99811-0030                                                                                                           
POSITION STATEMENT: Opposed SCR 7.                                                                                              
                                                                                                                                
Mr. Jev Shelton, Fisherman                                                                                                      
1670 Evergreen                                                                                                                  
Juneau, AK 99801                                                                                                                
POSITION STATEMENT: Opposed SCR 7.                                                                                              
                                                                                                                                
Mr. Bryan Jack, Tlingit                                                                                                         
Atlin, B.C., Canada                                                                                                             
POSITION STATEMENT: Opposed SCR 7.                                                                                              
                                                                                                                                
Mr. William Campbell, Tlingit                                                                                                   
Atlin, B.C., Canada                                                                                                             
POSITION STATEMENT: Opposed SCR 7.                                                                                              
                                                                                                                                
Mr. Don Weir                                                                                                                    
Taku Wilderness Association                                                                                                     
P.O. Box 321                                                                                                                    
Atlin, B.C., Canada                                                                                                             
POSITION STATEMENT: Opposed SCR 7.                                                                                              
                                                                                                                                
Mr. Joel Bennett                                                                                                                
15255 Pt. Louisa Rd.                                                                                                            
Juneau, AK 99801                                                                                                                
POSITION STATEMENT: Opposed SCR 7.                                                                                              
                                                                                                                                
Ms. Laurie Ferguson Craig, Issues Coordinator                                                                                   
Alaskans For Juneau                                                                                                             
P.O. Box 22428                                                                                                                  
Juneau, AK 99802                                                                                                                
POSITION STATEMENT: Opposed SCR 7.                                                                                              
                                                                                                                                
Ms. Joyce Levine                                                                                                                
P.O. Box 21705                                                                                                                  
Juneau, AK 99802                                                                                                                
POSITION STATEMENT: Opposed SCR 7.                                                                                              
                                                                                                                                
ACTION NARRATIVE                                                                                                                
                                                                                                                                
TAPE 99-17, SIDE A                                                                                                              
Number 001                                                                                                                      
                                                                                                                                
            SB 68-COOPERATION WITH FEDERAL AGENCIES                                                                             
                                                                                                                                
CHAIRMAN HALFORD called the Senate Resources Committee meeting to                                                               
order at 3:05 p.m. and announced SB 68 to be up for consideration.                                                              
                                                                                                                                
MR. BRETT HUBER, Aide to Senator Halford, explained the new CS,                                                                 
LSO35/H, and amendment, H.1, to SB 68.  The intent of SB 68 is, if                                                              
the federal government takes action to preempt our state's                                                                      
authority to manage fish and game resources, they need to pay the                                                               
bill.  Anything else is a unfunded federal mandate. The proposed                                                                
committee substitute addresses the committee's previous concerns.                                                               
                                                                                                                                
The first change on page 1, Section (a) adds a finding section that                                                             
further clarifies the intent of the bill.  It recognizes the                                                                    
constitutional mandate for sustained yield management and the                                                                   
State's commitment to providing for subsistence uses. It recognizes                                                             
Alaskans' relationship to and dependence upon fish and game                                                                     
resources and that, managed for abundance, our fish and game                                                                    
resources have the capacity to satisfy multiple uses provided the                                                               
State is able to maintain its sustained yield management.                                                                       
                                                                                                                                
Findings in Subsection (b) recognize the State is the only entity                                                               
with the mandate of sustained yield. With the additional                                                                        
inefficiency of a federal multi-agency authority jurisdiction and                                                               
regulation and their preemptive fish and game management, they                                                                  
recognize the State is bearing the additional burden of providing                                                               
for a comprehensive sustained yield management scheme that                                                                      
compensates for the diverse objectives of the federal agencies.                                                                 
They recognize the State's ability to manage for sustained yield                                                                
and to the benefit of all users is more complicated and more costly                                                             
due to federal preemption.  They recognize the benefits to the                                                                  
federal agencies, through the use of State management, expertise,                                                               
data, and research.  And finally, the findings recognize the                                                                    
overall benefit to the management of the resources if the federal                                                               
government pays their share of costs incurred to cooperate with                                                                 
their preemptive efforts.  These findings, to a great degree, were                                                              
based on the previous testimony of the Department, former                                                                       
Commissioner Rosier, and comments by committee members.                                                                         
                                                                                                                                
The next change on page 4, line 22, subsection (e) was added to                                                                 
address the concern raised by the Department of Public Safety and                                                               
specifically allows DPS to provide emergency backup without prior                                                               
determinations and agreements of compensation.                                                                                  
                                                                                                                                
The next change is on page 4, line 26 and deals with concerns                                                                   
raised about the interaction of the bill with several existing                                                                  
state/federal management relationships like Migratory Waterfowl and                                                             
Pacific Black Cod.  Subsection (f) specifically exempts the                                                                     
Migratory Bird Treaty Act, the Marine Mammal Protection Act, the                                                                
Endangered Species Act, and the Magnuson Stevens Fishery Act from                                                               
the federal programs the bill affects.                                                                                          
                                                                                                                                
There was an oversight in preparing the committee substitute and                                                                
the Pacific Salmon Treaty Act and the North Pacific Halibut Act                                                                 
were unintentionally omitted.  Amendment H.1 adds them to the list.                                                             
                                                                                                                                
SENATOR TAYLOR moved to adopt the committee substitute, 3/23/99                                                                 
Utermohle, to SB 68.  There were no objections and it was so                                                                    
ordered.                                                                                                                        
                                                                                                                                
LIEUTENANT HOWARD STARBARD, Department of Public Safety, said the                                                               
committee substitute with the amendment address the Department's                                                                
concern with the inclusion of Subsection(e).                                                                                    
                                                                                                                                
Number 110                                                                                                                      
                                                                                                                                
MR. MYLES CONWAY, Assistant Attorney General, said, although he                                                                 
hadn't seen the CS, it sounded like it would take care of their                                                                 
concerns.  One point, though, is that it's difficult to determine                                                               
the scope of the term "cooperate".  There is question about if the                                                              
cooperation is confined to joint studies, enforcement programs or                                                               
whether it would implicate informal contact, etc.                                                                               
                                                                                                                                
A remaining concern the Department has is the concern over the                                                                  
perception the statute might have in ongoing and future litigation                                                              
with federal government over their scope of management authority.                                                               
Legal challenges to federal management authority will always be                                                                 
decided in the Ninth Circuit and our State has a very unfortunate                                                               
and inaccurate reputation with this court on subsistence issues.                                                                
There is concern they will look at this statute and be convinced                                                                
that we are not concerned with the health of the resource; that we                                                              
are only concerned about money issues.  With this backdrop, they                                                                
may decide some difficult issues against us.                                                                                    
                                                                                                                                
CHAIRMAN HALFORD explained that the latest draft includes an                                                                    
extensive section on findings which is specifically aimed at                                                                    
avoiding the perception problems he is concerned with.  The scope                                                               
of "cooperation" is within the discretion of the commissioner of                                                                
ADF&G, the operating agency.  He thought that answered the majority                                                             
of the perceived and potential problems.                                                                                        
                                                                                                                                
MR. CONWAY responded that as he heard the findings, they would be                                                               
of some help in court, but there is the worry they will take things                                                             
out of context.                                                                                                                 
                                                                                                                                
SENATOR TAYLOR said he shared those concerns and that is why there                                                              
are additional findings provisions clearly setting forth the                                                                    
State's policies.  Our biggest problem is that we can't get to the                                                              
Ninth Circuit unless you have someone with enough guts to stand up                                                              
and fight for this State and file a case.                                                                                       
                                                                                                                                
Number 200                                                                                                                      
                                                                                                                                
SENATOR LINCOLN said she didn't see how "discretion" was left to                                                                
the commissioner.  It says, "the commissioner shall" which doesn't                                                              
leave him much discretionary authority.                                                                                         
                                                                                                                                
CHAIRMAN HALFORD explained that on pages two and three it says                                                                  
"cooperate or not cooperate" and is followed by "unless the                                                                     
commissioner finds in writing that they have an agreement to                                                                    
reimburse for additional costs".   It basically says the State has                                                              
to receive its fair share for its cooperation.                                                                                  
                                                                                                                                
SENATOR LINCOLN reiterated that she didn't see where the discretion                                                             
is left up to the commissioner.                                                                                                 
                                                                                                                                
MR. GERON BRUCE, ADF&G, said he had a brief opportunity to look at                                                              
the CS, but they still have major problems with the bill.  The                                                                  
direction of the bill leads the Department into a situation where                                                               
they will be further fragmenting our fish and game management.  We                                                              
need to be able to work with federal managers where they have                                                                   
authorities and we don't.  He appreciated the committee's efforts                                                               
to make sure there are adequate resources provided by the federal                                                               
government to deal with some of the costs imposed on the State by                                                               
federal law.                                                                                                                    
                                                                                                                                
SENATOR LINCOLN said her questions pertain to the findings in the                                                               
CS.  Page 2 says "the fish and game resources of Alaska have                                                                    
adequate biological and reproductive capacity to provide an                                                                     
abundance of fish and game for subsistence uses as well as other                                                                
recreational, personal use, commercial...in perpetuity, provided                                                                
that the state is able to maintain its sustained yield management                                                               
of the fish and game resources."  She did not think that was a fair                                                             
statement to make.                                                                                                              
                                                                                                                                
Also, on page 1, line 9 it says, "The State has made a commitment                                                               
to provide a preference for subsistence uses of fish and game."                                                                 
She certainly didn't agree with that either.                                                                                    
                                                                                                                                
CHAIRMAN HALFORD asked if we didn't have a general state law that                                                               
provides that subsistence is the highest and best use of wild food                                                              
resources.                                                                                                                      
                                                                                                                                
SENATOR LINCOLN responded they are discussing whether the                                                                       
preference complies with federal law.  She wanted to hear Mr.                                                                   
Bruce's response.                                                                                                               
                                                                                                                                
MR. BRUCE said that it is difficult to talk about Alaska's fish and                                                             
game resources as a total because there's so much variety.  Some                                                                
species, like salmon, are extremely abundant across the state as a                                                              
whole.  That doesn't mean that there aren't places where runs are                                                               
low and need rebuilding.  The environment and conditions vary and                                                               
use patterns vary.  Some wildlife populations are smaller like the                                                              
ones close to the road systems.  He thought those factors would                                                                 
have to be considered in evaluating a finding like that.                                                                        
                                                                                                                                
SENATOR LINCOLN asked him to respond to page 2, line 20 where                                                                   
"federal agencies reap a significant cost savings through the use                                                               
of State management, expertise, data, and research..." She asked if                                                             
that was a true statement and if we also reap any benefits from the                                                             
federal government on their data and research, etc.                                                                             
                                                                                                                                
MR. BRUCE responded that estimates in an early document                                                                         
accompanying the proposed regulations for federal subsistence                                                                   
fishing said from around $11 million to around $30 million.  There                                                              
are examples of information being provided by both governments.  In                                                             
the history of fish and wildlife management in the State of Alaska,                                                             
there has been a lot of cooperation between the State and the                                                                   
federal government.  Programs have been developed to compliment one                                                             
another in many instances.                                                                                                      
                                                                                                                                
SENATOR TAYLOR moved to pass CSSB 68(RES) from committee with                                                                   
individual recommendations.  SENATOR LINCOLN objected to say that                                                               
there is no other committee of referral.  They had just heard ADF&G                                                             
say they had not had an opportunity to look at it to analyze the                                                                
impact and determine a fiscal note.  Since this is the Resources                                                                
Committee, she thought it right to hear from the Department on                                                                  
those issues.                                                                                                                   
                                                                                                                                
SENATOR TAYLOR noted that there were several large fiscal notes                                                                 
attached to the bill now and he assumed that legally it would have                                                              
to go through finance.                                                                                                          
                                                                                                                                
CHAIRMAN HALFORD asked for those in favor to raise their hands.                                                                 
SENATORS TAYLOR, PARNELL, GREEN, and HALFORD voted yes.  SENATOR                                                                
LINCOLN voted no; and the bill moved from committee.                                                                            
                                                                                                                                
                   SCR 7-TULSEQUAH CHIEF MINE                                                                                   
                                                                                                                                
CHAIRMAN HALFORD announced SCR 7 to be up for consideration.                                                                    
                                                                                                                                
SENATOR PEARCE, sponsor, said SCR 7 resolves that the legislature                                                               
recommends continuing the cooperative effort between the two                                                                    
governments toward the environmentally responsible development of                                                               
the Tulsequah Chief Mine.  It further resolves that we respectfully                                                             
urge Governor Knowles withdraw the request for referral of the mine                                                             
project to the International Joint Commission over the Boundary                                                                 
Waters Treaty.                                                                                                                  
                                                                                                                                
After one of our state ferries was held hostage in B.C., she and                                                                
Senator Taylor met with public and elected officials from Prince                                                                
Rupert and discussed the fact that the government in B.C. and local                                                             
governments needed to have a better one-on-one working relationship                                                             
with the State of Alaska.  In the future, when we have concerns                                                                 
between the State and the Province, we would pick up phones and                                                                 
talk to one another before our concerns became international                                                                    
incidents.  In an effort to continue our good relationship, she                                                                 
brought this resolution to the committee.  Her goal is to promote                                                               
the environmentally responsible development of the Tulsequah Chief                                                              
Mine.  We have to respect the government of British Columbia and                                                                
the elected officials there and the processes they have in place.                                                               
                                                                                                                                
The mining question is under B.C. permitting jurisdiction.  Though                                                              
the permit law was rewritten in 1995 by the Provincial Assembly,                                                                
the environmental assessment process that is used for mining                                                                    
permits has been in place for over 20 years.  It's not new and the                                                              
underlying regulatory scheme is also not new.                                                                                   
                                                                                                                                
Under this process, mining projects with potential trans boundary                                                               
impacts have been permitted.  They include the Snip and the Johnny                                                              
Mountain Mines on the tributaries of the Stikine River and the S.K.                                                             
Creek Mine on the Nunuk near Ketchikan.  All of these trans                                                                     
boundary mine projects went through the same environmental                                                                      
assessment process. None of those were escalated to the                                                                         
International Joint Commission.  Established in 1908, it had a very                                                             
narrow scope of interest.  The Commission is not elected and didn't                                                             
answer to a tribunal of any sort and are now expanding their powers                                                             
to entire watersheds.  The Mine has gone through extensive permit                                                               
review and will require more in-depth review prior to issuance of                                                               
any detailed permits.  They have been working on permitting the                                                                 
Mine since 1994 and are now in the final 11 month process.                                                                      
                                                                                                                                
SENATOR PEARCE contended that an International Joint Commission                                                                 
referral wouldn't solve anything.  It simply makes recommendations                                                              
to the respective federal governments.  The experts who would be                                                                
involved in making these recommendations are the same experts that                                                              
are already involved at the provincial and state level.  An IJC                                                                 
referral can only serve to delay the project and that's why she                                                                 
thought the administration made the referral.                                                                                   
                                                                                                                                
The delay causes financial difficulties for Redfern as there could                                                              
be further delays of two years.                                                                                                 
                                                                                                                                
She has been told that other points about the Taku watershed will                                                               
be brought to the Commission.  One of those is the road and this is                                                             
a subterfuge, because unless the road exists to the Mine, financing                                                             
will not be in place and the opening will be unsuccessful.                                                                      
                                                                                                                                
There is an organized effort by environmental groups with a budget                                                              
of more than $600,000 to stop the project.  The Sierra Legal                                                                    
Defense Fund is the financial backer for the Tlingit First Nation                                                               
lawsuit from the Canadian side.                                                                                                 
                                                                                                                                
SENATOR PEARCE explained the reason she brought this resolution to                                                              
the Legislature is that she wanted to stop the flow of                                                                          
misinformation and get the facts on the table.  She is concerned                                                                
whether or not the State of Alaska should set a precedent they will                                                             
rue in years to come as we want to permit things under our                                                                      
processes like exploration and development in ANWR.  We should not                                                              
be telling the Canadians what kind of process they should use for                                                               
their permitting projects as long as they listen to our concerns.                                                               
She would be offended if they would tell us what kind of permitting                                                             
processes we should use.  We use phasing in projects (SB 308),                                                                  
because you can't always think of every possibility in the original                                                             
exploration assessments.                                                                                                        
                                                                                                                                
SENATOR PEARCE welcomed Mr. Norm Ringstad and Mr. Keith Ogilvie                                                                 
from British Columbia to join the committee asking Mr. Ringstad to                                                              
explain the process the province has gone through to date on the                                                                
environmental assessment of this particular project.                                                                            
                                                                                                                                
MR. NORM RINGSTAD, B.C. Project Assessment Director, said he was                                                                
the Project Committee Chairman for the Tulsequah Mine review.  He                                                               
is the mining sector lead in the province's environmental                                                                       
assessment process.  He has been involved in mine reviews for close                                                             
to 25 years.                                                                                                                    
                                                                                                                                
The Tulsequah project review began in 1994 under their provincial                                                               
review process.  It was also subject to a Canadian environmental                                                                
review, because of potential for trans boundary affects and the                                                                 
possible need for federal permits.  He entertained a joint review                                                               
so one review would satisfy the needs of both governments.  As                                                                  
such, the committee was composed of representatives of the federal                                                              
government and the B.C., Yukon, local First Nations, and Alaska                                                                 
State/US federal agencies.  Over the course of three and a half                                                                 
years, they went through an iterative process with Redfern                                                                      
Resources, state builder groups, and others to work towards finding                                                             
a project design that would be environmentally acceptable and                                                                   
proceeded down to a permitting process.  In March 1998, they                                                                    
concluded their overall review met both the spirit and intent of                                                                
B.C.'s review process, as well as the Canadian federal review.                                                                  
They paid particular attention to potential for adverse trans                                                                   
boundary effects.  They ensured that those potential effects as                                                                 
well as any strategic flaws were known and known to be resolved at                                                              
the permitting level.                                                                                                           
                                                                                                                                
At the end of the review in March 1998, they did not have a full                                                                
consensus of the project committee.  Issues were remaining from the                                                             
First Nations and the Alaska State/U.S. federal agency                                                                          
perspectives.  B.C. and Canada felt they resolved those issues                                                                  
satisfactorily knowing that their permitting process would detail                                                               
out the appropriate mitigation plans to insure there would be no                                                                
significant adverse effects in a trans boundary context.  In order                                                              
to further their relationship building with U.S. federal agencies,                                                              
from March, 1998 - December, 1998 BC and Canada continued to                                                                    
maintain a bi-lateral communication and information exchange with                                                               
the American agencies.  They had a meeting in April in Washington,                                                              
a two day meeting in Vancouver, and a one day meeting in Seattle.                                                               
                                                                                                                                
In December, the extraordinary attempts they made through this                                                                  
bilateral communication exchange was geared to bring a comfort                                                                  
level to the U.S. agencies that their permitting process at the                                                                 
end, prior to a permit being issued, could meet the standards of                                                                
environmental protection equivalent to those that would be                                                                      
established in Alaska, particularly for water quality emanating                                                                 
from the mine that would be subject to a waste management permit                                                                
under the B.C. Environmental Waste Management Act.  He thought                                                                  
those additional months were very fruitful addressing water                                                                     
quality, fisheries, tailings pond design, location, performance,                                                                
etc. and gave them a more focused list of issues that would guide                                                               
the permitting agencies, once the proponent, Redfern, makes                                                                     
applications for its statutory permits.                                                                                         
                                                                                                                                
In order for the continuing relationship to be fostered of American                                                             
input into their process, in March 1998, the B.C. government                                                                    
formally requested of the Alaska State and U.S. federal agencies                                                                
who participated in their review to continue to be involved in the                                                              
permit review process by becoming members of their regionally based                                                             
referral committee which is based in Smithers, NW B.C.  That                                                                    
committee would undertake to ensure that remaining issues would be                                                              
considered in the permit applications and that all other agencies                                                               
with a vested interest have an opportunity to be involved.  The                                                                 
people who will make the decisions on the statutory permits are not                                                             
politically appointed.  They are bureaucrats who have legislative                                                               
responsibilities pursuant to their particular statute.  They feel                                                               
this is a reasonable and adequate approach to show, in the final                                                                
analysis, that this mine can be developed in an environmentally                                                                 
responsible manner, taking into consideration everyone's concerns,                                                              
and having environmental standards that meets everyone's needs.                                                                 
                                                                                                                                
MR. RINGSTAD said their lawyers have been able to schedule some                                                                 
time for the court to hear the case in June.  In the meantime, they                                                             
are keeping an open door policy to deal with Alaska/U.S. federal                                                                
agencies issues and also any remaining First Nation issues in the                                                               
spirit of trying to have a resolution.                                                                                          
                                                                                                                                
SENATOR TAYLOR asked what was the potential environmental hazard of                                                             
the tailings material.                                                                                                          
                                                                                                                                
MR. RINGSTAD said information from technical experts indicate that                                                              
the milling process is a gravity flotation process producing three                                                              
ore concentrates as well as some gravity separated gold which will                                                              
come out in dory bars.  The waste products from that milling                                                                    
process will be of a relatively high sulfide tailings.  There is                                                                
another flotation                                                                                                               
                                                                                                                                
TAPE 17, SIDE B                                                                                                                 
Number 590                                                                                                                      
                                                                                                                                
cell within the system that will float the pyrite (sulfide                                                                      
material) out of the tailings.  That material would then be put                                                                 
with cement and used as paste backfill in the underground stopes                                                                
which is a requirement for underground mining stability, anyway.                                                                
It will then be submerged in water, which is an acceptable way to                                                               
manage the potential of acid rock drainage of any high sulfide                                                                  
material.  For the remaining tailings, there will be an addition of                                                             
calcium carbonate from a nearby limestone quarry that would be                                                                  
added to the milling surfeit to increase the carbonate content of                                                               
the remaining clean tailings to ensure that any minor sulfide left                                                              
in the tailings will not be acid generating.  As such, the tailings                                                             
will be inert; there are no other chemicals or metals that would be                                                             
deleterious.  Bench scale tests of effluent through the proposed                                                                
milling process passes the LC50 test with 100 percent survival.                                                                 
There will be complete recycling of the mill water from the                                                                     
tailings ponds.  There will be no direct discharge from the                                                                     
tailings ponds into the environments from the mill operations.  At                                                              
the end of the mine life, the tailings pond can be covered with a                                                               
topping of vegetative material and be left in a dry state.  In the                                                              
meantime, any seepage from the operation from the tailings pond                                                                 
will be monitored.  As a mitigation strategy, there is an option                                                                
for pumping it back into the tailings pond.                                                                                     
                                                                                                                                
SENATOR TAYLOR asked what LC 50 survival rate meant.                                                                            
                                                                                                                                
MR. RINGSTAD answered that it is a standard biological testing of                                                               
the toxicity of an aquatic medium on aquatic life.  The standard                                                                
organisms used are either daphnia, a food source for rainbow trout,                                                             
or rainbow trout fingerlings.  It tests the survival of fish in                                                                 
that material over a 96 hour period.  In this particular case,                                                                  
there was 100 percent survival.                                                                                                 
                                                                                                                                
If there is an effluent discharge from the water treatment plant,                                                               
it will have to be managed under a waste management permit and the                                                              
Ministry of Environment staff has been working Alaska DEC staff on                                                              
effluent mixing zones and other matters related to insuring that                                                                
any discharges would meet very high standards.                                                                                  
                                                                                                                                
Number 550                                                                                                                      
                                                                                                                                
SENATOR TAYLOR asked if the same aquatic medium would go into the                                                               
mixing zone or would it get treated subsequently before it gets                                                                 
mixed.                                                                                                                          
                                                                                                                                
MR. RINGSTAD answered that a water treatment facility mitigation                                                                
strategy would be put in place.                                                                                                 
                                                                                                                                
SENATOR TAYLOR noted that even after it has met this standard, it                                                               
would still go through a subsequent treatment before going into a                                                               
mixing zone.                                                                                                                    
                                                                                                                                
MR. RINGSTAD said that was his understanding; the details would be                                                              
left to the permit application review under the Waste Management                                                                
Permit under the purview of the Provincial Ministry of Environment.                                                             
                                                                                                                                
SENATOR TAYLOR asked him to explain the level of design criteria                                                                
regarding the tailings impoundment.  What level of flooding would                                                               
need to occur in order for the tailings pond to be "swished into                                                                
the river."                                                                                                                     
                                                                                                                                
MR. RINGSTAD answered that technical experts have said that during                                                              
the EA process, particularly through the last 11 months of                                                                      
bilaterals, they spent a lot of time looking at flood, debris, and                                                              
earthquake hazards that would have an effect on the stability of                                                                
the tailings dam.  Nothing came out of that review that suggested                                                               
an extreme hazardous event that would take out or damage the                                                                    
tailings pond dam integrity.                                                                                                    
                                                                                                                                
CHAIRMAN HALFORD asked if that was a 10,000 year flood.                                                                         
                                                                                                                                
MR. RINGSTAD answered yes.  He added that the actual detailed                                                                   
design of the dam would be confirmed during the permitting process,                                                             
so further information on foundation stability and dam design would                                                             
be coming in.  The dam will be built to the Canadian dam safety                                                                 
standard code and if there are extraordinary events that occurred                                                               
in this area that aren't covered by the dam safety averages, that                                                               
could be taken into consideration.                                                                                              
                                                                                                                                
SENATOR TAYLOR said it's his understanding that there is a time                                                                 
deadline to get a permit process.  He asked how many time                                                                       
extensions were granted for this particular project.                                                                            
                                                                                                                                
MR. RINGSTAD answered there were four extensions given by the                                                                   
Minister of Environment.                                                                                                        
                                                                                                                                
Number 515                                                                                                                      
                                                                                                                                
SENATOR LINCOLN thanked the Canadian group for coming to her office                                                             
to discuss this issue.  However, Alaskans must have concerns for                                                                
our resources and any effect from projects outside of our                                                                       
boundaries.  She asked if the State of Alaska and EPA have an                                                                   
opportunity to review the research and the data on water quality                                                                
and the mixing zone prior to the permitting, construction, and                                                                  
operation.                                                                                                                      
                                                                                                                                
MR. RINGSTAD said yes, definitely; the British Columbia government                                                              
has put in writing their commitment to engage in, through further                                                               
consultation with Alaska/US federal agencies, more than an adequate                                                             
amount of consultation and input before any permit is issued either                                                             
under the Mines Act or under the Waste Management Act.  This will                                                               
be by way of Alaska State/US federal agencies being able to                                                                     
participate on the Regional Permitting Committee.  He knows that                                                                
the Waste Management staff in Smithers has already been in touch                                                                
with the DEC staff in Juneau who has come a long way in reviewing                                                               
existing data and information and outlining additional data and                                                                 
information that is required.                                                                                                   
                                                                                                                                
SENATOR LINCOLN asked if Alaska would have an opportunity to                                                                    
discuss that information and address any concerns we may have prior                                                             
to any of those things taking place.                                                                                            
                                                                                                                                
MR. RINGSTAD said yes.                                                                                                          
                                                                                                                                
SENATOR LINCOLN asked once the permit is in place, what is our role                                                             
with his government.                                                                                                            
                                                                                                                                
MR. RINGSTAD answered there is a monitoring program to see how                                                                  
effectively the permit is being complied with.  This information                                                                
can be exchanged with Alaska; the dialogue can continue as the                                                                  
project proceeds through development.  He believes they have                                                                    
undertaken a process in which both jurisdictions can continue to                                                                
communicate and discuss concerns and have an arena for concerns to                                                              
be resolved.  The process established from this point on through                                                                
the permitting process will do that.                                                                                            
                                                                                                                                
Number 456                                                                                                                      
                                                                                                                                
MR. CARMICHAEL, Vice President, Redfern Resources, Ltd., showed                                                                 
slides to the committee explaining the tailings impoundment.  He                                                                
said the pond was located about 14 miles upstream from the Taku                                                                 
River.  It's not located on the flood plain of the Taku River nor                                                               
the Tulsequah River.  It's on Shazah Creek.  He said there is                                                                   
concern if there was a large flood coming down, the water would                                                                 
flow around the impoundment.  It's not the case of a dam going                                                                  
across the whole valley.                                                                                                        
                                                                                                                                
The committee discussed the slides for a number of minutes at this                                                              
point.                                                                                                                          
                                                                                                                                
SENATOR TAYLOR asked what percentage of the mine tailings went back                                                             
into the mine, itself.                                                                                                          
                                                                                                                                
MR. RINGSTAD answered about 50 percent is returned as a paste                                                                   
backfill system.                                                                                                                
                                                                                                                                
SENATOR TAYLOR asked for information on correct background levels                                                               
on the Tulsequah regarding chemicals, etc.                                                                                      
                                                                                                                                
MR. CARMICHAEL answered that he didn't have the figures for that,                                                               
but the metal concentrations in the Taku River are higher upstream                                                              
from where the Tulsequah comes in to dilute it.  Shazah Creek water                                                             
is pretty standard, he said.                                                                                                    
                                                                                                                                
SENATOR TAYLOR explained that he was trying to figure out if the                                                                
waters being discharged would be cleaner or dirtier than the water                                                              
that's receiving it.                                                                                                            
                                                                                                                                
MR. CARMICHAEL answered that it would be cleaner than the water in                                                              
the Tulsequah and probably about the same as water in the Shazah                                                                
Creek.  The Tulsequah River is quite turbid since it is a glacial                                                               
stream.                                                                                                                         
                                                                                                                                
CHAIRMAN HALFORD noted that it was carrying 300 parts per million                                                               
of silt - you can't see bottom in a foot.                                                                                       
                                                                                                                                
MR. CARMICHAEL said the mine would get further review before                                                                    
construction whatever happens, but said the question is should it                                                               
be done with existing channels or through the International Joint                                                               
Commission.  He thought the IJC would be a very extraordinary step.                                                             
A number of mines have already been permitted with the existing                                                                 
process and there is nothing unique about the Tulsequah Chief mine                                                              
that would call for an IJC review.                                                                                              
                                                                                                                                
SENATOR TAYLOR added that the Snit property sits much closer to the                                                             
Iskut River which is a larger tributary than the Tulsequah and is                                                               
much closer to the main body of the Stikine River than the mine                                                                 
would be.  He asked if the Iskut was a bigger volume stream.                                                                    
                                                                                                                                
MR. CARMICHAEL said that it was larger than the Tulsequah River.                                                                
                                                                                                                                
SENATOR LINCOLN asked how many other mines have been developed                                                                  
using Canada's new permitting process.                                                                                          
                                                                                                                                
MR. RINGSTAD said, in 1995, the federal Canadian government                                                                     
introduced the Canadian Environmental Assessment Act, but it wasn't                                                             
absolutely new.  It was a legislative form of a previous policy-                                                                
driven federal review process called the Environmental Assessment                                                               
Review Process Guidelines.  Tulsequah is about the fourth mine to                                                               
be subject to the review process.                                                                                               
                                                                                                                                
SENATOR TAYLOR said in the last hearing on this subject ADF&G                                                                   
indicated there were two other areas within the area of the mine of                                                             
significant environmental concern to them where previous                                                                        
developments had taken place and been left in poor condition.                                                                   
Commissioner Rue indicated that part of the condition for the                                                                   
Tulsequah would be to clean up and enhance both of those other                                                                  
areas.                                                                                                                          
                                                                                                                                
MR. RINGSTAD explained that there are three areas from past mining                                                              
activities that have contributed to metal release into the                                                                      
Tulsequah or the Taku River.  There is acid rock drainage coming                                                                
out of the old workings and the Tulsequah Chief project causing                                                                 
elevated metal levels.  The historic Big Bull mine, which is                                                                    
underground, is on the Taku River side.  It has a very small, but                                                               
high level of metal, stream of water into the Taku River.  On the                                                               
other side of the Tulsequah River is the old Polaris Gold Mine; and                                                             
White Water Creek, in particular, is a creek on that side which the                                                             
tailings from the previous operation were just dumped near or into.                                                             
The creek comes through those tailings now.  Canarc, the owner of                                                               
the property, has done some work to show water quality effects                                                                  
there.  As part of the approval for the Tulsequah Chief to proceed,                                                             
their acid rock drainage they have now will be remediated through                                                               
the development of the project and removing of the water now                                                                    
pouring into the river to a water treatment plant.  Environment                                                                 
Canada and the BC Ministry of Environment are working with Redfern                                                              
regarding the timing of that remediation as well as some longer                                                                 
term plans dealing with the Big Bull.                                                                                           
                                                                                                                                
Number 250                                                                                                                      
                                                                                                                                
SENATOR TAYLOR asked if the Tulsequah Chief should go forward while                                                             
the problems for the other mines continue or will some of the                                                                   
remediation depend upon it going forward.  He thought everyone                                                                  
would want to enhance the quality of that river as opposed to                                                                   
turning our back on it and leaving it to degrade.                                                                               
                                                                                                                                
MR. RINGSTAD replied that the remediation of the Tulsequah drainage                                                             
would be accomplished by redevelopment of the project.  Any other                                                               
remediation that would be undertaken in the absence of the project                                                              
would probably sterilize the mine resources, because of the nature                                                              
of the remediation strategy.  B.C. understands there is to be a                                                                 
well defined construction schedule beginning in 1998 - 99 and the                                                               
Project Committee had agreed to remediation starting in the fall of                                                             
last year.  That was predicated on the assumption that the                                                                      
proponent would be moving ahead with the beginning of its                                                                       
development program.                                                                                                            
                                                                                                                                
SENATOR TAYLOR said that all the delays are just allowing the                                                                   
higher acidic levels to run into the river and asked how much                                                                   
longer he contemplated before moving forward and doing the                                                                      
remediation on the Taku River.                                                                                                  
                                                                                                                                
MR. RINGSTAD said it depends on when the proponent makes a move                                                                 
towards proceeding with this project.                                                                                           
                                                                                                                                
MR. CARMICHAEL responded that it would be next year at the                                                                      
earliest.                                                                                                                       
                                                                                                                                
SENATOR TAYLOR asked how big the acidic flow is now and how big                                                                 
would it be when the mine is in operation.                                                                                      
                                                                                                                                
MR. CARMICHAEL replied that it is a fairly small volume now and                                                                 
there is no measurable impact at the confluence of the Tulsequah                                                                
and the Taku.  The current situation isn't having a big impact on                                                               
water quality levels.  As the mine goes into production, the new                                                                
levels will be zero.  So it's taking something that isn't a large                                                               
problem currently and reducing it to zero.                                                                                      
                                                                                                                                
SENATOR LINCOLN asked if the Governor proceeds with the IJC                                                                     
referral, what would that do to the project.                                                                                    
                                                                                                                                
MR. CARMICHAEL said there is still a big question of him being able                                                             
to convince both governments that it should go before the IJC.  If                                                              
it did, it would mean a delay of at least two years which would                                                                 
probably be disastrous for the company and the project.                                                                         
                                                                                                                                
MR. STEVE BORELL, Executive Director, Alaska Miners Association,                                                                
said the mining industries have been following this mine for years.                                                             
Redfern Resources obtained an option on the property in 1997 and                                                                
their exploration determined that there are reserves that would                                                                 
make it feasible to reopen the mine.  This is polymetalic ore                                                                   
containing several metals including zinc, copper, silver, gold, and                                                             
lead.  The new environmental law in Canada has been heralded                                                                    
throughout Canada as being very comprehensive and stringent and                                                                 
based on the best science available.  The new permitting process is                                                             
general approval in principal followed by detailed design, whereas                                                              
the permitting process in Alaska defines more of the details prior                                                              
to any approval.  There are advantages and disadvantages to both                                                                
approaches, but they should both have the same result.                                                                          
                                                                                                                                
The issue is whether the IJC should be the vehicle for mediating                                                                
the differences between the two approaches and assuring the Taku                                                                
fisheries will be adequately protected.  They do not feel involving                                                             
the IJC would be helpful in answering the technical questions                                                                   
regarding the Tulsequah Chief project.  The IJC is not primarily a                                                              
technical body, but rather an appointed body and, because of this,                                                              
two IJC members on both sides may be carrying agendas other than                                                                
technical evaluation of the project.                                                                                            
                                                                                                                                
Second, using the IJC process will likely take two or three years                                                               
to complete.                                                                                                                    
                                                                                                                                
The AMA thinks the project should be judged and evaluated on the                                                                
basis of its technical merits.  They continue to recommend that all                                                             
parties stand back and take a new look at the technical aspects of                                                              
the project.  Both sides should bring new faces to the table like                                                               
people with experience in permitting mines to ensure that the                                                                   
projects receive the broad based technical evaluation that is                                                                   
needed.  People from all three departments, DNR, DEC, and ADF&G                                                                 
should be involved in the process.  This group should be tasked                                                                 
with review of the project to insure that it is technically sound                                                               
and will not adversely affect Alaska's resources.                                                                               
                                                                                                                                
MR. WAYNE WEIHING, Tongass Conservancy, said he didn't know why our                                                             
state legislature would support a Canadian mining company that puts                                                             
our water quality and fisheries habitat  at risk.  Recent declines                                                              
of the Pacific Northwest fisheries resulting in the listing under                                                               
the Endangered Species Act has been mostly caused by loss of                                                                    
habitat.                                                                                                                        
                                                                                                                                
MR. MIKE SALLEE, Ketchikan, said his concern is with the 80 miles                                                               
of road that is going to be built and what effect it will have on                                                               
the fisheries and wildlife.  He is not enthusiastic about the                                                                   
Canadians' environmental record after traveling up and down the                                                                 
Inside Passage in the 60's and saw what they did with Vancouver                                                                 
Island and other places with their logging.                                                                                     
                                                                                                                                
MR. ERROL CHAMPION, Taku River Recreation Association (TRRA), said                                                              
he is a cabin owner on the Taku River.  He said there are 130 lots                                                              
on the Taku River Valley and there are approximately 70 developed                                                               
cabins.  Since the ice age, the Taku River was the main access to                                                               
the interior long before power boats.  It's had traditional use and                                                             
a lot of commerce on it over the years.                                                                                         
                                                                                                                                
MR. CHAMPION said TRRA neither supports or opposes the reopening of                                                             
the Tulsequah Chief mine.  It's a Canadian project and it's the                                                                 
obligation of the B.C. government to review and regulate this mine.                                                             
Their main concern is through repeated communication efforts we                                                                 
have failed to have a dialogue with members of Redfern or the B.C.                                                              
government.                                                                                                                     
                                                                                                                                
TAPE 99-18, SIDE A                                                                                                              
Number 001                                                                                                                      
                                                                                                                                
Although it is the duty of the Canadian government to review the                                                                
mine, he called the committee's attention to what happened in                                                                   
Skagway when there were not a lot of controls in place to deal with                                                             
the soil contamination on the impacts that the Anvil Mine had.  He                                                              
said it would be in best interest of all Alaskans that SCR 7 be                                                                 
modified to be sure there is a requirement that Redfern and the                                                                 
B.C. government communicate.  After contacting ADF&G, EPA and the                                                               
Office of the Governor, he found they are just as uninformed as                                                                 
ATTA is.  They want to be sure their interests in the lower part of                                                             
the River are protected.                                                                                                        
                                                                                                                                
MR. ELDON DENNIS, Juneau fisherman, said his family has benefited                                                               
greatly from the resources of the Taku River.  They wholeheartedly                                                              
support the efforts of DEC, ADF&G, and the Governor in trying to                                                                
protect their fishery interest there.  He related his first contact                                                             
with Redfern a few years ago when he was invited to a meeting here.                                                             
At that time Redfern was proposing to use barges to go up and down                                                              
Taku River complete with an operating schedule.  They were asked if                                                             
they saw a problem with barges interfering with nets in the water                                                               
in the River and they didn't even realize the fishery was going on.                                                             
He didn't think Redfern did their homework very well.                                                                           
                                                                                                                                
The next perspective he has is in taking the word of the Canadian                                                               
government.  We have been in long negotiations with Canada over                                                                 
trans boundary rivers and have seen a very deliberate, misleading                                                               
campaign by the the government over interception issues and he                                                                  
didn't see any reason to believe what they say now about mining                                                                 
issues. He concluded by asking the committee to not pass SCR 7.                                                                 
                                                                                                                                
MR. DICK MYRON, 50 year resident, said he is a retired fishery                                                                  
biologist and the fish are very sensitive to things in the water.                                                               
You can go above a stream where salmon are spawning and just put                                                                
your hand in the water.  As soon as that water reaches the fish,                                                                
you'll see them pick up the odor.  He said we are talking about                                                                 
large quantities of cyanide and sulfide here.                                                                                   
                                                                                                                                
He said IJC didn't exist when the road from Skagway to White Horse                                                              
was built.  The consequences for Skagway were that they could not                                                               
be a world class destination with National Park status, because                                                                 
they have wrecked the canyon and put a highway in on one side and                                                               
a railroad on the other.  The long term effects were that it put                                                                
the railroad out of business and Skagway became a very poverty                                                                  
stricken town.  He encouraged having an international body looking                                                              
at this issue.  He also commented that a 200 year flood means it                                                                
could happen any time from now on.                                                                                              
                                                                                                                                
SENATOR TAYLOR clarified that the speaker said a 10,000 year flood                                                              
would not breach the proposed dam.  However, that could occur                                                                   
tomorrow.                                                                                                                       
                                                                                                                                
MR. JEV SHELTON, Juneau commercial fisherman, said the greatest                                                                 
portion of his fishing comes from stocks in the Taku River.  He has                                                             
no other employment.  He is also Alaska's alternate in the Pacific                                                              
Salmon Commission and a significant part of the treaty with Canada                                                              
involves the Taku River as a trans boundary river.  He is not                                                                   
representing the Commission here, though.                                                                                       
                                                                                                                                
MR. SHELTON asked the committee to reconsider the wisdom of passing                                                             
this resolution.   The Taku River contains a very significant and                                                               
economically viable fishery on which a large number of Southeast                                                                
Alaskans depend for their livelihoods.  They are the legislature's                                                              
constituents and are the ones who have gone to the Governor                                                                     
requesting some help in dealing with the proposal for the                                                                       
development of the Tulsequah Chief mine.  Significant risks are                                                                 
posed to their economic activities and livelihoods.  They, as                                                                   
resource users, are not opposed to mining.  They want enough of a                                                               
review to understand what the risks are and to develop a proposal                                                               
that would bring those down to acceptable levels.  They do not see                                                              
that occurring in the way the Canadian review system is set up.  As                                                             
a consequence, they are supporting the IJC referral.                                                                            
                                                                                                                                
MR. SHELTON said they hoped to "have the Legislature and the                                                                    
Governor both on the same page" to get a reasonable analysis done                                                               
prior to the time there is a permit so far down the line that there                                                             
is no turning back on the consequences regarding the mine, the                                                                  
tailings, and the road.  Even though the Tulsequah is a minor                                                                   
tributary to the Taku, it sits immediately on top of the single                                                                 
most significant rearing habitat in the entire drainage.  The Taku                                                              
River is the biggest coho producer, probably, in the whole State of                                                             
Alaska.  There is a realistic perception of a threat to the                                                                     
resource.  The request is that there is enough care taken to be                                                                 
sure the Legislature's constituents aren't put under duress.                                                                    
                                                                                                                                
Secondly, the request to the IJC has already had some fairly                                                                    
significant effect, stimulating an increased degree of conversation                                                             
back and forth with the State.  The way the Canadian review system                                                              
exists, it's not like you can have a whole understanding in advance                                                             
of what the effects are.  In the legislative hearings he has heard                                                              
a set of assertions on how benign this project will be without                                                                  
having access to data supporting that.                                                                                          
                                                                                                                                
His group has been active in mining issues, notably the Kensington                                                              
Mine, and came to agreement to what looked like a tolerable way for                                                             
that mine to go forward without impacting fishing interests.                                                                    
Similar sorts of things could happen here, but not in the manner in                                                             
which the Redfern project is being proposed.  There is no base line                                                             
information that will allow a determination.  It needs to be                                                                    
developed.                                                                                                                      
                                                                                                                                
The argument that there needs to be some speed in order to                                                                      
facilitate the company's interests is probably a moot issue because                                                             
it's already in Canadian courts through the Taku Tlingit.  He heard                                                             
an EPA official say that a mine located in a flood plain like this                                                              
one would probably not be permitted in this country.  This disturbs                                                             
him.                                                                                                                            
                                                                                                                                
If the Legislature does not want the IJC to go forward, he                                                                      
suggested they at least act with the administration on being sure                                                               
that Alaskans' interests are the primary consideration, not the                                                                 
economic well being of the Canadian mining company.                                                                             
                                                                                                                                
Number 283                                                                                                                      
                                                                                                                                
MR. BRYAN JACK, Atlin Tlingit, said they have a migratory trail on                                                              
the proposed route down to the Redfern Mine.  They walk this trail                                                              
every year.  He has found the runoff starts at Koosai down to the                                                               
Taku River.  In the seven to 10 years he has traveled this trail,                                                               
he has done his own assessment and there are potential slide areas.                                                             
The location is dead center in the middle of a migratory area for                                                               
bear and moose - all the animals going into the Taku River Valley.                                                              
                                                                                                                                
There is a nine year life span for the mine and that's put up                                                                   
against a life time economic structure of the Tlingit and Taku                                                                  
River people.  He didn't think it was worth it.                                                                                 
                                                                                                                                
SENATOR LINCOLN asked him where he lived.                                                                                       
                                                                                                                                
MR. JACK answered that he has lived for 45 years in Atlin and that                                                              
is why he has such a hard time when government officials come                                                                   
within his territory and tell him that they have assessed it.  His                                                              
assessment is much different.                                                                                                   
                                                                                                                                
SENATOR LINCOLN noted that the Canadian government is continuing to                                                             
work with the First Nations.                                                                                                    
                                                                                                                                
MR. JACK explained they are litigating because the assessment                                                                   
hasn't been done to his satisfaction.                                                                                           
                                                                                                                                
SENATOR LINCOLN asked if the First Nation's land is included in the                                                             
parcel that's being discussed.                                                                                                  
                                                                                                                                
MR. JACK replied that it is on the treaty table.  The proposed road                                                             
goes right through the middle of traditional territory.                                                                         
                                                                                                                                
SENATOR LINCOLN asked if that issue had been resolved yet.                                                                      
                                                                                                                                
MR. JACK replied no.                                                                                                            
                                                                                                                                
SENATOR LINCOLN asked if  the First Nations were part of the                                                                    
assessment committee.                                                                                                           
                                                                                                                                
MR. JACK replied, "On and Off."  They have had talks, but First                                                                 
Nations issues were not recognized.                                                                                             
                                                                                                                                
SENATOR LINCOLN asked if he was speaking on behalf of the First                                                                 
Nations and did he represent a group.                                                                                           
                                                                                                                                
MR. JACK replied that he is speaking as a member of the Taku River                                                              
Tlingit.  He does not speak for the First Nations this time.  He                                                                
did not think they had taken a position, but they are in the                                                                    
litigation process.                                                                                                             
                                                                                                                                
Number 396                                                                                                                      
                                                                                                                                
MR. WILLIAM CAMPBELL, B.C. Tlingit, said the land the mine is on                                                                
used to belong to the Taku River Tlingit.  The government sold the                                                              
land out from under them in Atlin and moved them out to Five Mile                                                               
without even asking them.  He said the natives own the land,                                                                    
repeating that the Taku Tlingit own the mine, not the government.                                                               
Putting in a road will destroy the land and drive the game away.                                                                
The Tlingit elders are the government.                                                                                          
                                                                                                                                
Number 529                                                                                                                      
                                                                                                                                
MS. JOAN JACK, thanked them for listening to Mr. Campbell and                                                                   
explained when he said they own the mine, he meant the minerals in                                                              
the land, not the corporation.  She is glad the purpose of the                                                                  
resolution is to stop the flow of misinformation, because there is                                                              
a lot of it.  The provincial government representative today said                                                               
the environmental issues had been identified and addressed to a                                                                 
satisfactory level, but she wanted them to ask themselves to whose                                                              
satisfaction.  That kind of rhetoric is irresponsible.  The First                                                               
Nation has taken the perspective that there is insufficient base                                                                
line data to proceed.  They haven't decided whether they want the                                                               
mine or not.                                                                                                                    
                                                                                                                                
She lives at Canoe Landing and walks five days to get there.  She                                                               
urged them to walk through the country to see how a road would                                                                  
affect it.  The trail through the pass Mr. Jack talked about is not                                                             
only the pass the Tlingit chose for their permanent migratory                                                                   
trail, but it's the only pass for the animals to go through as                                                                  
well.  She said there are swans that nest on the Shazah Slough and                                                              
may or may not be trumpeter, but those are on the Endangered                                                                    
Species list.                                                                                                                   
                                                                                                                                
Her personal opinion is that the watershed is a whole and the issue                                                             
is access to it on a scale that has never been seen before.  In                                                                 
reference to comments that this is not pristine territory, some                                                                 
pieces have been wrecked, but if you walk between Knuthi Lake and                                                               
Canoe Landing, it's pretty pristine.  Placer miners have staked                                                                 
every creek all along the road now.  The road is now supposed to be                                                             
single use with a manned gate; and everyone knows how ineffective                                                               
that will be against illegal access.  The larger issue is what will                                                             
be done with the mines that will come in the future.  The committee                                                             
is talking about "busting it wide open" and they had best be sure                                                               
what they are doing.                                                                                                            
                                                                                                                                
TAPE 99-18, SIDE B                                                                                                              
Number 590                                                                                                                      
                                                                                                                                
She agreed with the Governor that the IJC is a good idea, because                                                               
she doesn't really know what to do about it.                                                                                    
                                                                                                                                
MS. JACK commented if tailings are inert, why is there such a big                                                               
problem about the tailings pond.  She concluded saying that there                                                               
are lots of comments about the environmentalists and their                                                                      
receiving money from down east.  Last time she checked, Redfern was                                                             
a publicly held company and who knows where they are receiving                                                                  
their money from.  "So what?" She thought it was a good thing that                                                              
some people in New York were concerned about the Taku.                                                                          
                                                                                                                                
SENATOR LINCOLN asked if there was a position by the Taku Tlingit                                                               
people on this project.                                                                                                         
                                                                                                                                
MS. JACK replied that her government (Tlingit) hasn't taken a                                                                   
position on this mine, because they have been overwhelmed by it.                                                                
Their position is that they are in court, because they are                                                                      
challenging the project review certificate.  Most of the suit                                                                   
involves breaches of their own process (due process) and the                                                                    
environmental concerns.                                                                                                         
                                                                                                                                
MR. NEIL MACKINNON, Juneau resident, said that for five                                                                         
generations, his family has used the Taku River for hunting,                                                                    
fishing, and access to and from the early gold fields of Forty                                                                  
Mile, Circle City, and Atlin.  His family has had a cabin on the                                                                
banks of the Taku for over 40 years and he is not concerned about                                                               
the mine or the road.  He is concerned about the new attention from                                                             
the environmental industry.  This is no pristine area as the                                                                    
environmentalists are trying to portray.  Their goal is to stop the                                                             
mine in such a way that insures a developmental moratorium on the                                                               
watershed.  They do not want a better project; they want to kill                                                                
it.  The Taku's uniqueness, contrary to the enviro-elitist view,                                                                
deserves to be preserved, but it is unique because the Taku is the                                                              
last river on the border between Alaska and Canada not encumbered                                                               
by a park, wilderness, wild and scenic river, or other restricted                                                               
designation.  He applauded the Legislature for taking the                                                                       
initiative to keep the Taku free.                                                                                               
                                                                                                                                
MR. RICH DAVIS, Seafood Producers Co-op., said he and his wife are                                                              
totally dependent upon commercial fisheries in Southeast Alaska.                                                                
Both the troll and gillnet fishery harvest salmon from the Taku                                                                 
River system.  Water quality and mining issues are not new to them.                                                             
The Tulsequah Chief mine project has not answered the questions nor                                                             
assuaged the concerns of Alaska's resource agencies who have our                                                                
interests and concerns in mind.  The Canadians need to prove they                                                               
have a good mine upstream with adequate safeguards by proving it                                                                
with good science and thorough planning that satisfies the concerns                                                             
of our resource agencies.                                                                                                       
                                                                                                                                
Our neighboring government degraded its waterways and exploited its                                                             
salmon resources to the point that its commercial fisheries no                                                                  
longer are sustainable.  Rather than face the reality of their                                                                  
irresponsibility in relationship to salmon over the years, they                                                                 
blamed Alaska's commercial fishermen for their problems.  Their                                                                 
government is not his government.  He doesn't trust them and they                                                               
don't elect this legislature.  He opposes this resolution until the                                                             
mine's proponents convince Alaska's resource agencies that the                                                                  
water quality and fish habitat concerns of the Taku River fish are                                                              
addressed.                                                                                                                      
                                                                                                                                
Number 487                                                                                                                      
                                                                                                                                
MR. JIM BECKER, President, Juneau Chapter, Southeast Alaska                                                                     
Gillnetters, said they are an organization of men and women who                                                                 
make their living fishing in Southeast Alaska.  He encouraged the                                                               
committee to support the administration's efforts to have the issue                                                             
of the Tulsequah Chief Mine resolved by the IJC.  To date, the                                                                  
process has been totally inadequate in addressing the impact of the                                                             
mine on Alaskan Taku sports and subsistence issues.  The extent of                                                              
their involvement was one public hearing at the Baranof Hotel in                                                                
1997.  Redfern presented a complete overview of the proposed mine.                                                              
However, many questions from the audience raised serious doubts as                                                              
to the thoroughness of Redfern's application and raised concerns                                                                
about other potential developments using the road built by the                                                                  
Tulsequah Chief mine.  After the meeting, they accepted Redfern's                                                               
offer to get on their mailing list to continue to dialogue about                                                                
unresolved issues on impacts to the fishery and they haven't                                                                    
received one thing from them.                                                                                                   
                                                                                                                                
His organization has a responsibility to work diligently to protect                                                             
our fishing industry and insure the long-term survivability of the                                                              
fishing industry.  An internal Board resolution guides their                                                                    
efforts in matters of economic development, water quality and                                                                   
habitat issues.  The last part of the Resolution says, "We strive                                                               
to make it clear we are not opposed to economic development.                                                                    
Expansion or development of new industries can be good for everyone                                                             
as long as development doesn't come at the expense of an existing                                                               
industry."  They were the first organization to publicly support                                                                
the Kensington Mine and even after Coeur Alaska had to make basic                                                               
changes to its tailings discharge, they continued to have a healthy                                                             
dialogue with them.                                                                                                             
                                                                                                                                
MR. DAVIS said from their perspective the process of permitting                                                                 
this mine did not adequately consider the impact on a healthy,                                                                  
viable Alaska fishery.  It is the one industry downstream and they                                                              
weren't even brought into the discussion until the very end.  They                                                              
base their concerns on information submitted by ADF&G, Division of                                                              
Habitat Restoration.  They say, "Tulsequah Chief mine and related                                                               
activity has the potential to substantially affect the water                                                                    
quality and fisheries of the Taku River watershed...The Department                                                              
has concerns about the tailings storage pond and water treatment                                                                
plant.  The Department concludes in the event of a landslide,                                                                   
avalanche or earthquakes, tailing impoundment seepage would                                                                     
increase substantially."  They also raised the question of how the                                                              
cyanide would be shipped.  In regards to the access raod, the                                                                   
Department raises questions about sedimentation, siltation, and                                                                 
fish passages.  They question secondary impacts from additional                                                                 
development because of a newly establlished road access.  If this                                                               
mine were in Alaska, all these issues would be completely hammered                                                              
out in the public process.  The only avenue left to protect                                                                     
Alaska's interests is the IJC.                                                                                                  
                                                                                                                                
Number 438                                                                                                                      
                                                                                                                                
MS. ANNISSA BARRY FRICK, Port Alexander, asked how we know the                                                                  
Tulsequah Chief mine is an environmentally sound venture.  The                                                                  
health of the Taku River could be compromised becasue this mine is                                                              
opened.  Because it is the largest unroaded, unprotected watershed                                                              
on the west coast of North America, our ADF&G and other federal                                                                 
agencies need to be included in the review of the mine using the                                                                
IJC.  It is the only way we can mitigate future problems up stream.                                                             
                                                                                                                                
SENATOR TAYLOR asked her if she was referring to the Taku River as                                                              
the largest unroaded watershed in North America and if she had                                                                  
heard of the Stikine which is four times larger and is also                                                                     
unroaded.  Someone from the audience commented that was not so.                                                                 
                                                                                                                                
MR. MICHEAL DUNLAP, Douglas Indian Association, said he is on the                                                               
Tribal Council and the Environmental Committee which submitted a                                                                
request to have the IJC look into this issue.  They are affected by                                                             
everything that flows downstream.  They support SCR 7. He thought                                                               
an indepth review of this as being more beneficial than what people                                                             
perceive so far.  He said you could look at this as resource                                                                    
development or resource exploitation, because the road system would                                                             
have other effects in the long term.  That is what they really want                                                             
the Commission to review.  He said his family has been in the Taku                                                              
River valley since the time of the pyramids.  They have used it and                                                             
been denied use of it - fishing and mining permits.                                                                             
                                                                                                                                
Number 330                                                                                                                      
                                                                                                                                
MS. KERRY HOWARD, Office of the Governor, said Mr. Bosworth asked                                                               
if she would read his testimony into the record and asked if that's                                                             
what the committee wanted.                                                                                                      
                                                                                                                                
SENATOR TAYLOR said she could submit the testimony, but there are                                                               
some questions.  He asked if any of their concerns had been asuaged                                                             
by today's comments.                                                                                                            
                                                                                                                                
MS. HOWARD responded that information presented today by both                                                                   
Redfern and the B.C. representatives is known to the Governor's                                                                 
Office and she commented that many times professionals disagree on                                                              
assessments of risk.  The Governor's Office still has concerns                                                                  
about the project.                                                                                                              
                                                                                                                                
SENATOR TAYLOR asked how you could disagree on how many trout died.                                                             
                                                                                                                                
MS. HOWARD responded that speaks to acute toxicity, but doesn't                                                                 
address chronic toxicity.                                                                                                       
                                                                                                                                
SENATOR TAYLOR said their concerns had been about the tailings                                                                  
pond; its acidity, its location, and that it could be washed out by                                                             
a flood.  They now say it can withstand a 10,000 year flood and he                                                              
didn't know of any dam in this country with that standard.                                                                      
                                                                                                                                
MS. HOWARD said the Governor's Office is concerned about                                                                        
catastrophic events and the tailing impoundment.  This includes                                                                 
things other than floods.  It's a very active geologic area prone                                                               
to earthquakes and avalanches.  She thought there was disagreement                                                              
regarding the tailings pond in this instance.  The information on                                                               
the tailings pond now is not what the Governor had when he                                                                      
requested the IJC.  It hasn't been accepted yet.  Just the request                                                              
has helped them get new information.  She stressed that the                                                                     
Governor has concerns, but has not said no to the mine.  She                                                                    
thought the concerns could be addressed, but it's important to have                                                             
information to develop that.                                                                                                    
                                                                                                                                
SENATOR TAYLOR asked if she thought they would ever have their                                                                  
detailed questions answered to her satisfaction, because they go                                                                
through the process permit by permit, not all at once like we do.                                                               
Getting the information is the first step; the next is to get it                                                                
fully evaluated; then see what is rendered in a permit decision.                                                                
                                                                                                                                
SENATOR LINCOLN asked if the administration was satisfied with the                                                              
response that we will be able to fully review the permit process.                                                               
They have been forthcoming in inviting our particiaption in the                                                                 
detailed permit reviews.  They have no reason to suspect it won't                                                               
continue.                                                                                                                       
                                                                                                                                
MR. DON WEIR, Taku Wilderness Association, said he had written                                                                  
testimony for the committee.  They have prepared a case study of                                                                
two mines, the Comess Mine and Huckleberry Mine in B.C., and how                                                                
they were handled.  They came into production in the last five                                                                  
years.  It's a bit of a sad tale.  He said basically there is a 9                                                               
year mine that is going to be carved into 5.845 million acre                                                                    
watershed where there is absolutely no plan or strategy in place as                                                             
to what is best for both jurisdictions.  Taku River Tlingit are                                                                 
struggling to put together a management plan for the area which he                                                              
totally supprots. 1. This mine was subjected to an environmental                                                                
assessment which at the final stage some of the major stakeholders                                                              
refused to sign.  2. The issue is under litigation with the Tlingit                                                             
because of a flawed environmental process.  3. If the mine goes                                                                 
ahead, other mines will follow.  4. There are already other                                                                     
properties that are doing exploration work.                                                                                     
                                                                                                                                
The long term effect of this is what the regulatory agencies and                                                                
B.C. do in terms of monitoring.  He personally knows the people who                                                             
will be overlooking these types of things and they have told him                                                                
that they do not have the money because of budgetary cutbacks.                                                                  
From his point of view, there is a violation of process.  There are                                                             
environmental considerations that have to be addressed.  One of the                                                             
advantages of an IJC would be a dispute resolving mechanism.                                                                    
                                                                                                                                
SENATOR TAYLOR asked what the employment situation in in terms of                                                               
local hire.                                                                                                                     
                                                                                                                                
MR. WEIR answered that they had been talking about job training at                                                              
community meetings, but they can't really say exactly how many jobs                                                             
they are talking about.                                                                                                         
                                                                                                                                
SENATOR TAYLOR said that in his district he has seen significant                                                                
employment in two mines on the Stikine.                                                                                         
                                                                                                                                
MR. WEIR said this has been discussed at a number of meetings and                                                               
they have struggled to get a committment for 50 percent employment                                                              
from Atlin, but Redfern couldn't commit.  They said they would do                                                               
their best.                                                                                                                     
                                                                                                                                
SENATOR TAYLOR asked if Mr. Weir was employed in Atlin.                                                                         
                                                                                                                                
MR. WEIR answered that he is a landscaper.                                                                                      
                                                                                                                                
SENATOR TAYLOR asked if he was employed by the Wilderness                                                                       
Association, too, and what percent does he work for them.                                                                       
                                                                                                                                
MR. WEIR answered yes and he used to put in about 20 hours per                                                                  
week, but at his point he doesn't have much time for landscaping.                                                               
                                                                                                                                
MR. JOEL BENNETT, 30-year Juneau resident, said the Taku River is                                                               
a very special place for sport, commercial, and subsistence users.                                                              
He said that he understands the Legislature is trying to foster                                                                 
reasonable resource development which he appreciates.  Most                                                                     
legislators understand that the fisheries resource is extremely                                                                 
important to Alaskans.  He supports the administration's position,                                                              
because he thought everything should be done to make a rigorous                                                                 
review of the situation.  Everyone knows of the sensitivity of the                                                              
fisheries to improper roading and other development activities.  He                                                             
pointed out that this administration had been a good friend to                                                                  
mining in general.                                                                                                              
                                                                                                                                
TAPE 19, SIDE A                                                                                                                 
Number 001                                                                                                                      
                                                                                                                                
He didn't think the IJC recommendation was unreasonable.  He                                                                    
supported a rewording of the resolution to include that request.                                                                
He has a lot of sympathy for local native people from the area                                                                  
traveling to Juneau to testify about their concerns and he hoped                                                                
that would add an extra note of caution and concern to the                                                                      
committee.                                                                                                                      
                                                                                                                                
MS. LAURIE FERGUSON CRAIG, Issues Coordinator, Alaskans For Juneau,                                                             
said she had submitted written comments, also.  She explained that                                                              
the IJC primarily resolves issues having to do with the Great Lakes                                                             
and are currently involved in hearings in four Canadian and four                                                                
U.S. cities.  They will proceed from there to resolve things.                                                                   
They're showing a real interest in dealing with our coast and our                                                               
issues here.  She supported IJC review.                                                                                         
                                                                                                                                
She commented further on the differences in processing permits                                                                  
between the two countries.  Alaskans For Juneau was involved in                                                                 
litigation resolving that question, setting a precedent for the                                                                 
state.  A city was going through their phased proceedure while                                                                  
Alaskans For Juneau thought it was important to know the ultimate                                                               
impacts of the project before the permit was granted.  The State                                                                
Supreme Court ruled in September 1996 that was not the proper way                                                               
to proceed.                                                                                                                     
                                                                                                                                
SENATOR TAYLOR asked what mine that was on.                                                                                     
                                                                                                                                
MS. CRAIG answered it was the AJ Mine that was proposed to be                                                                   
reopened in Juneau.                                                                                                             
                                                                                                                                
SENATOR TAYLOR commented that they successfully killed that one.                                                                
                                                                                                                                
MS. CRAIG corrected that the ore body itself took care of that,                                                                 
because the original miners were very good at getting the gold out,                                                             
according to Echo Bay.                                                                                                          
                                                                                                                                
MS. JOYCE LEVINE related how when she was down south recently, she                                                              
was in grocery stores with whole aisles for water.  She said that                                                               
Alaska's water is still pretty much safe enough to drink from a                                                                 
stream, if you don't worry about the beavers.                                                                                   
                                                                                                                                
She has been involved in the fisheries for several years in Alaska                                                              
and she remembers the fishermen talking about how the Canadians                                                                 
were doing questionable things with their fish resource and she was                                                             
impressed with how much Alaska cared about their fish.  This is one                                                             
of the reasons why our fisheries are so great.                                                                                  
                                                                                                                                
MS. LEVINE said the Taku is a five-salmon river and if one mine                                                                 
goes in and starts making a profit, others will follow, but the                                                                 
fishermen are already making a living on the river.  She likes to                                                               
eat fish and is concerned the fish she catches from the Taku River                                                              
might be tainted.  She has a lot of faith in the ADF&G biologists                                                               
and thinks we should trust them to make these decisions.  If Canada                                                             
hasn't historically taken care of their fisheries, we shouldn't                                                                 
give them the go-ahead to "...just dump it in our water.  It's                                                                  
o.k."  We need to be aware of what they are doing.  If it takes a                                                               
little bit of time to check out they are doing, the mine will                                                                   
always be there.                                                                                                                
SENATOR TAYLOR thanked everyone for their testimony and adjourned                                                               
the meeting at 6:25 p.m.                                                                                                        

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