Legislature(1999 - 2000)

03/22/2000 03:10 PM Senate RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                    SENATE RESOURCES COMMITTEE                                                                                
                           March 22, 2000                                                                                       
                             3:10 p.m.                                                                                          
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Rick Halford, Chairman                                                                                                  
Senator Robin Taylor, Vice Chairman                                                                                             
Senator Pete Kelly                                                                                                              
Senator Lyda Green                                                                                                              
Senator Georgianna Lincoln                                                                                                      
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Jerry Mackie                                                                                                            
Senator Sean Parnell                                                                                                            
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CS FOR SENATE JOINT RESOLUTION NO. 39(RES)                                                                                      
Encouraging  the United  States  Congress to  pass S.  2214, a  bill                                                            
opening the coastal plain  of the Arctic National Wildlife Refuge to                                                            
responsible exploration,  development, and production of its oil and                                                            
gas resources.                                                                                                                  
                                                                                                                                
     -MOVED CS SJR 39(RES) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE JOINT RESOLUTION NO. 54                                                                                                   
Relating to urging the exclusion of national forests in Alaska from                                                             
President Clinton's proposal for withdrawal of roadless areas in                                                                
the national forest system.                                                                                                     
                                                                                                                                
     -MOVED HJR 54 OUT OF COMMITTEE                                                                                             
                                                                                                                                
PREVIOUS SENATE COMMITTEE ACTION                                                                                              
                                                                                                                                
SJR 39 - No previous action to consider.                                                                                        
                                                                                                                                
HJR 54 - No previous action to consider.                                                                                        
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
Senator Drue Pearce                                                                                                             
Senate District F                                                                                                               
Alaska State Capitol                                                                                                            
Juneau, AK 99811                                                                                                                
POSITION STATEMENT: Sponsor of SJR 39.                                                                                        
                                                                                                                                
Ms. Susan Schrader                                                                                                              
Alaska Conservation Voters                                                                                                      
Alaska Conservation Alliance                                                                                                    
P.O. Box 22151                                                                                                                  
Juneau, AK 99802                                                                                                                
POSITION STATEMENT: Opposed SJR 39 and HJR 54.                                                                                
                                                                                                                                
Mr. Jim Sykes                                                                                                                   
P.O. Box 696                                                                                                                    
Palmer, AK 99645                                                                                                                
POSITION STATEMENT: Opposed SJR 39.                                                                                           
                                                                                                                                
Ms. Pam LaBolle, President                                                                                                      
Alaska State Chamber of Commerce                                                                                                
217 Second Street, #201                                                                                                         
Juneau, AK 99801                                                                                                                
POSITION STATEMENT: Supported HJR 54.                                                                                         
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
TAPE 00-13, SIDE A                                                                                                            
Number 001                                                                                                                      
                                                                                                                                
             SJR 39-ENCOURAGING CONGRESS TO OPEN ANWR                                                                       
                                                                                                                                
CHAIRMAN HALFORD  called the Senate  Resources Committee  meeting to                                                          
order at 3:10 p.m. and  announced SJR 39 to be up for consideration.                                                            
                                                                                                                                
SENATOR PEARCE said SJR  39 was introduced by the Rules Committee at                                                            
her request.   U.S. Senator Frank Murkowski has introduced  S. 2214,                                                            
a bill  that  calls for  opening  the coastal  plain  of the  Arctic                                                            
National  Wildlife   Refuge  (ANWR)   to  responsible  exploration,                                                             
development  and  production  of oil  and  gas  resources.   SJR  39                                                            
supports Alaska's role  in providing the nation with a major portion                                                            
of its domestic  oil and  encourages Congress  to pass S. 2214.   It                                                            
further resolves  that the  legislature opposes  any effort  to make                                                            
the  coastal plain  a  national monument.    There is  concern  that                                                            
President Clinton  will use the Antiquities Act for  further Alaskan                                                            
withdrawals, including ANWR, before he leaves office this year.                                                                 
                                                                                                                                
SENATOR LINCOLN said that  a similar resolution [HJR 11] passed last                                                            
year.  She distributed  a proposed amendment that contains the exact                                                            
language that  was included in the previous year's  resolution.  The                                                            
proposed amendment reads as follows.                                                                                            
                                                                                                                                
Page 2, following line 30, insert:                                                                                              
                                                                                                                                
     WHEREAS  the state will  ensure the  continued health  and                                                               
     productivity   of the  Porcupine   Caribou  herd  and  the                                                                 
     protection  of the  land,  water, and  wildlife resources                                                                  
     during  the exploration  and  development  of the coastal                                                                  
     plain of the Arctic National Wildlife Refuge; and                                                                          
                                                                                                                                
Page 3, following line 6, insert:                                                                                               
                                                                                                                                
     FURTHER RESOLVED that oil exploration and development                                                                    
     activity be conducted in a manner that protects the                                                                        
     wildlife and the environment and utilizes the state's                                                                      
     work force to the maximum extent possible; and be it                                                                       
                                                                                                                                
SENATOR LINCOLN moved to adopt the amendment.                                                                                   
                                                                                                                                
SENATOR GREEN objected for the purpose of discussion.                                                                           
                                                                                                                                
SENATOR PEARCE said she has no problem with the amendment.                                                                      
                                                                                                                                
SENATOR  TAYLOR  asked  how  the state  is  ensuring  the  continued                                                            
health of the herd and whether it has a policy with Lloyd's.                                                                    
                                                                                                                                
SENATOR PEARCE  said there is mitigation  on the North Slope  within                                                            
the present Prudhoe  Bay Unit and other units, which  disallows some                                                            
activities  during  calving  and other  important  seasons  for  the                                                            
central herd.   She assumed that it  has always been the  promise of                                                            
the state that any adverse  effects on the Porcupine herd during the                                                            
exploration,  which  takes  place  during winter  when  the  caribou                                                            
aren't there,  will be mitigated.   She was  sure the same  sorts of                                                            
policies would continue  and the ANWR project will require State and                                                            
Borough permits  as well.  The caribou  herds have been an  on-going                                                            
concern of  the people of the North  Slope, particularly  the people                                                            
in Kaktovik  who utilize the herd  for a portion of their  food each                                                            
year.   They  feel  comfortable  that impacts  on  the  herd can  be                                                            
mitigated.                                                                                                                      
                                                                                                                                
CHAIRMAN  HALFORD asked  if  the objection  was maintained.    There                                                            
being  no further  objection,  the  motion  to adopt  the  amendment                                                            
carried.                                                                                                                        
                                                                                                                                
CHAIRMAN  HALFORD   announced  the   committee  would  take   public                                                            
testimony.                                                                                                                      
                                                                                                                                
Number 500                                                                                                                      
                                                                                                                                
MS. SUSAN SCHRADER, representing  the Alaska Conservation Voters and                                                            
the  Alaska Conservation  Alliance  (ACV-ACA),  mentioned  that  all                                                            
Americans,  as well as the  22,000 members  of the ACV-ACA,  enjoyed                                                            
the lower  fuel prices last  year and now  feel the pinch of  higher                                                            
prices.  ACV-ACA  members do not, however, believe  that drilling in                                                            
ANWR is the answer to the current situation.                                                                                    
                                                                                                                                
MS.  SCHRADER  brought  some  polling  results  to  the committee's                                                             
attention, and particularly  some results that relate to a "Whereas"                                                            
clause  on page  2, line  28,  that states,  "The  vast majority  of                                                            
Alaskans support  development in the coastal plain."   She felt that                                                            
is a profound overstatement.   Earlier this year, the ACA contracted                                                            
with  Ivan Moore  Research  to conduct  a  telephone  survey of  500                                                            
Alaskans.  Only  50.7 percent of those polled supported  drilling in                                                            
ANWR; 41.7 percent favored  protecting caribou and bird habitat; and                                                            
7.6  percent  were  neutral.    She  repeated  it  is a  bit  of  an                                                            
overstatement to suggest  that 51 percent is a vast majority.  These                                                            
results were very much  in line with other polls conducted in Alaska                                                            
by ACA in years passed.                                                                                                         
                                                                                                                                
Another  question was  whether respondents  favor  state funding  of                                                            
Arctic  Power Group.   The  results showed  that  only 41.6  percent                                                            
favor state funding, while  46.6 percent did not support this use of                                                            
state funds.  11.8 percent did not know.                                                                                        
                                                                                                                                
MS. SCHRADER  said the most compelling  and simple argument  against                                                            
opening  ANWR is  that  95 percent  of the  North  Slope is  already                                                            
available for  oil and gas exploration.   The coastal plain  of ANWR                                                            
equals  five   percent.    While   the  Natives  of  Kaktovik   have                                                            
consistently  supported  opening the  refuge, the  Gwit'chen  people                                                            
spoke in Canada  and Alaska and consider the coastal  plain a sacred                                                            
ground.     For  an  estimated  20,000   years,  their  traditional                                                             
subsistence  lifestyle has depended  heavily on the 129,000  caribou                                                            
of the Porcupine  herd, which uses  the coastal plain as  a birthing                                                            
ground.   Many believe  that protection  of this  herd, the  coastal                                                            
plain, and  the Gwit'chen  culture makes this  issue a human  rights                                                            
one.  Opening  the refuge will not be a quick fix  to the high price                                                            
of gasoline.   During the gas crisis  in 1973, it was the  desire of                                                            
people to conserve fuel  that resolved the crisis by using more fuel                                                            
efficient cars.   Other solutions to the high price  of fuel are out                                                            
there; opening  the last five percent of the North  Slope is not the                                                            
only one.                                                                                                                       
                                                                                                                                
SENATOR  TAYLOR said an  ice age  was underway  10,000 years  ago so                                                            
there  were probably  no caribou  up there,  and he  just watched  a                                                            
television  program about  a wooly  mammoth skeleton  found in  that                                                            
area.  He thought she should check some of her facts.                                                                           
                                                                                                                                
MS. SCHRADER responded  that it is her understanding that the Bering                                                            
land-sea  bridge was formed  and in place  somewhere between  10,000                                                            
and 20,000  years ago.   The best theory  of the anthropologists  is                                                            
that  the Athabaskan  people  migrated across  this  bridge at  that                                                            
time.  Her concern  is that those people have been  in that area for                                                            
about  20,000  years  and  they  have  been  living   a subsistence                                                             
lifestyle.                                                                                                                      
                                                                                                                                
CHAIRMAN HALFORD asked  her where she got most of her information on                                                            
the coastal plain of ANWR.                                                                                                      
                                                                                                                                
MS. SCHRADER  answered that  she hasn't been  in the refuge  itself,                                                            
but she  has been  in the  Brooks Range.   She spent  quite a  while                                                            
along the Noatak.   The coastal plain  is a known birthing  area for                                                            
the caribou herd.                                                                                                               
                                                                                                                                
CHAIRMAN HALFORD  said the coastal plain is a very  small portion of                                                            
ANWR.   It's very  different  from the  high country.  He noted  the                                                            
coastal  plain  is a  flat,  high-level mosquito  bog.  He  couldn't                                                            
imagine that  anyone camps  on the coastal  plain for any length  of                                                            
time during the summer.                                                                                                         
                                                                                                                                
MS. SCHRADER said her argument  is that the coastal plain is a known                                                            
birthing  area for  the caribou  herd.   She said  they are  talking                                                            
about  a very  small  area  but it  is not  barren  and  it is  very                                                            
critical.                                                                                                                       
                                                                                                                                
CHAIRMAN   HALFORD  said   the  exaggerations   of  the  threat   of                                                            
development  and  modern  technology  on  ANWR  does  not  help  her                                                            
argument  because  the size  of the  footprint  and  the ability  to                                                            
develop in ANWR with minimal impact is there.                                                                                   
                                                                                                                                
MS.  SCHRADER said  the  exaggeration  is in  the resolution.    The                                                            
physical footprint the  petrochemical industry has to make to do the                                                            
exploration  may be smaller now, but  she can guarantee there  would                                                            
be helicopter and fixed-wing  overflights, exploring and 3-D seismic                                                            
testing during the winter  when the polar bears are denning. To risk                                                            
the last five percent of  the North Slope because we're debating who                                                            
is exaggerating more is  shortsighted. She emphasized the importance                                                            
of oil conservation.                                                                                                            
                                                                                                                                
CHAIRMAN  HALFORD  responded  that  numerically   her  facts  aren't                                                            
accurate.                                                                                                                       
                                                                                                                                
SENATOR TAYLOR asked Ms.  Schrader if she has any numbers to back up                                                            
her statement  that the  oil crisis  of 1973 was  alleviated  by the                                                            
public's conservation  measures, such as buying gas  efficient cars.                                                            
                                                                                                                                
MS. SCHRADER  said she would get some.   She said her point  is that                                                            
fuel conservation  by the  citizens of the  United States will  go a                                                            
long way to helping the current problem.                                                                                        
                                                                                                                                
SENATOR KELLY asked Ms.  Schrader if she is trying to slow down this                                                            
resolution.                                                                                                                     
                                                                                                                                
MS. SCHRADER  said she didn't  think her  testimony would make  much                                                            
difference.  She  hoped it would at least make them  pause and think                                                            
about  the many  other  Alaskans who  care about  this  issue.   She                                                            
thought the committee  needs to look at the polling  data carefully.                                                            
                                                                                                                                
Number 1555                                                                                                                     
                                                                                                                                
SENATOR  GREEN  said  she  recalled  that  the  Arctic  Power  Group                                                            
presented documented figures  that showed the Porcupine caribou herd                                                            
population tripled  since oil development began on  the North Slope.                                                            
                                                                                                                                
MS. SCHRADER responded  that her understanding is that Senator Green                                                            
is talking  about a different herd.  She wasn't sure to what  extent                                                            
the  Porcupine caribou  herd  migrates into  the  Prudhoe Bay  area.                                                            
There are several  other herds.  She offered to get  her the correct                                                            
information.                                                                                                                    
                                                                                                                                
SENATOR  LINCOLN  thanked Ms.  Schrader  and said  the  idea of  the                                                            
committee  is to allow  people of  different voices  to be heard  on                                                            
legislation  or anything the  committee is  discussing.  She  didn't                                                            
want Ms.  Schrader to feel  like she was going  to be grilled  every                                                            
time she sits at the table.                                                                                                     
                                                                                                                                
SENATOR TAYLOR  moved to pass SJR 39 from committee  with individual                                                            
recommendations.                                                                                                                
                                                                                                                                
MR. JIM  SYKES, representing  himself,  interrupted  to say that  he                                                            
wanted  to testify  in  opposition  to SJR  39. He  asked  committee                                                            
members  to think about  their place  as legislators  in Alaska  and                                                            
Alaska as a  producer of oil for the  U.S.  Alaska produces  about 1                                                            
percent  of  the  world's  oil and  about  20  percent  of  American                                                            
production.     He  appreciated   Ms.  Schrader's   comments   about                                                            
conservation.  Some people  think we need to increase our production                                                            
of oil  so  we can  have more  energy security.  The  fact is  quite                                                            
opposite.  The  more we deplete our reserves, the  higher the danger                                                            
is that we  will not have any national  defense capability  and have                                                            
no alternatives.   In  the absence  of a national  energy plan,  the                                                            
United  States needs to  be very  careful about  our resources.   He                                                            
couldn't  understand why the  State was pushing  to open the  Arctic                                                            
Refuge so fast.                                                                                                                 
                                                                                                                                
MR.  SYKES quoted  from the  1998-99  U.S. Geological  Survey  Artic                                                            
National  Wildlife Refuge  10-02  Area Petroleum  Assessment  Report                                                            
which  states, "About  2.6  billion barrels  of oil  distributed  in                                                            
about three  fields is  expected to be  economically recoverable  in                                                            
the unformed (ph)  part of the 10-02 area."  That  means there is no                                                            
central location  for a huge pot of  oil - the oil is spread  across                                                            
the 10-02 area.  If one compares the  estimated 2.6 billion  barrels                                                            
with  the unexplored  potential  between  the Colville  and  Canning                                                            
Rivers, which  the State owns, it certainly makes  sense that should                                                            
be explored first  and those supplies should be used  up long before                                                            
ANWR is considered.   ANWR is a very  special area and, if  there is                                                            
not much  oil there,  it should not  be high  on the priority  list.                                                            
Although the technology  has improved, any spill that occurred would                                                            
have  the  potential  of  reaching  the coast  so  it  could  effect                                                            
millions of  acres. The second area  that should be explored  is the                                                            
NPRA.  He also  thought they  needed  to consider  that development                                                             
would happen  in a "net" rather than  a small footprint.   These are                                                            
very important national arguments.                                                                                              
                                                                                                                                
MR. SYKES asked  the committee to  look at the website of  the Union                                                            
of Concerned  Scientists.   They  have issued  a report  on how  the                                                            
United  States can lessen  its dependence  on fossil  fuels over  80                                                            
percent over  30 years without degrading  our lifestyle.   We simply                                                            
have to  make changes  in technology  and in the  way we do  things.                                                            
Alaska's oil is a drop  in the bucket as far as American consumption                                                            
goes.  It  should be saved  for our grandchildren  in case  we don't                                                            
responsibly manage our resources.                                                                                               
                                                                                                                                
SENATOR TAYLOR  moved CSSJR 39(RES)  from committee with  individual                                                            
recommendations.   There were no objections  and it was so  ordered.                                                            
                                                                                                                                
         HJR 54-EXCLUDE AK NATL FORESTS FROM ROADLESS POL                                                                   
                                                                                                                                
CHAIRMAN HALFORD announced HJR 54 to be up for consideration.                                                                   
                                                                                                                                
REPRESENTATIVE  BILL WILLIAMS,  sponsor of  HJR 54, said Alaska  has                                                            
two of  the largest  national forests  in America:  the Tongass  and                                                            
Chugach.   He  objects to  a roadless  policy for  several  reasons.                                                            
First,  it's  against  the  law.    ANILCA  specifically   prohibits                                                            
withdrawals without  the express direction of Congress.   Second, we                                                            
just spent over 10 years  and $15 million to create the Tongass Land                                                            
Management  Plan, which addresses  all uses  of the forest.   Third,                                                            
the public  process  is being  followed to  produce  a plan for  the                                                            
Chugach National  Forest.  Of concern to many in the  Chugach is the                                                            
spruce  bark  beetle  infestation.     If  the  roadless  policy  is                                                            
implemented,  it will be harder to  manage. The Governor,  late last                                                            
year, wrote a strong letter opposing the roadless plan.                                                                         
                                                                                                                                
SENATOR  LINCOLN  asked  whether,  regarding  the  Further  Resolved                                                            
clause on  page 3 that  urges the Governor  to determine what  legal                                                            
action may be  available under ANILCA, he thought  this would create                                                            
an expense for the state.                                                                                                       
                                                                                                                                
REPRESENTATIVE  WILLIAMS answered that he would have  to talk to the                                                            
Governor's office about that.                                                                                                   
                                                                                                                                
MS.  PAM LABOLLE,  President,  Alaska  State  Chamber  of  Commerce,                                                            
stated strong  support for  HJR 54.  The  Chamber requests  that the                                                            
legislature  support  all  efforts  to  stop  the  Forest  Service's                                                            
proposed roadless  policy and that the State sue the  Forest Service                                                            
to  block application  of  the  roadless  initiative.   The  Clinton                                                            
Administration  is  making  a folly  out  of  the efforts  spent  to                                                            
develop the Tongass Land Management Plan.                                                                                       
                                                                                                                                
MS.  SUSAN  SCHRADER opposed  HJR  54  saying  her members  use  the                                                            
Tongass Forest  for a variety of reasons - subsistence,  recreation,                                                            
and  commercial  use.   They  support  the efforts  by  the  Clinton                                                            
Administration  and the U.S. Forest Service to protect  the existing                                                            
roadless areas in the Tongass and Chugach National Forests.                                                                     
                                                                                                                                
The roadless  proposal, she explained,  does not create wilderness;                                                             
only Congress  can do that.   A more practical  way to look  at this                                                            
policy  is as another  tool  the Forest  Service can  use to  manage                                                            
national forests.  It will  help allow the Forest Service to protect                                                            
the water  quality  for the  fish and  habitat for  wildlife and  to                                                            
ensure that there are opportunities for remote recreation.                                                                      
                                                                                                                                
MS. SCHRADER said this  roadless policy does not create new parks or                                                            
refuges, it does  not violate the "no more" clause  in ANILCA.  This                                                            
policy does not affect  existing roads.  In fact, the money saved by                                                            
not building  new roads in  roadless areas  can be used to  maintain                                                            
existing  roads in the  Tongass and  the Chugach.   Nationwide,  the                                                            
Forest  Service estimates  it has  an $8.4 million  backlog in  road                                                            
maintenance.   It doesn't make sense  to keep building roads  if you                                                            
can't maintain the ones you have.                                                                                               
                                                                                                                                
This policy  does not mean an end  to the timber industry.  Billions                                                            
of board  feet  are within  roaded areas  in the  Tongass that  will                                                            
continue to be  available.  There are 4,600 miles  of existing roads                                                            
in the Tongass.   There are no timber-dependent  communities  in the                                                            
Chugach  or near it.   Another concern  is that  this proposal  will                                                            
affect other  rights guaranteed  under ANILCA  or similar laws.   It                                                            
does not.  RS 2477 rights-of-way would still be maintained.                                                                     
                                                                                                                                
If the committee needs  a good reason to protect our roadless areas,                                                            
it can look south to Washington and see what's happened there.                                                                  
                                                                                                                                
TAPE 00-13, SIDE B                                                                                                            
Number 2400                                                                                                                     
                                                                                                                                
MS.  SCHRADER  noted problems  in  the Mount  Baker  and  Snoqualmie                                                            
Forest with  landslides,  damage to salmon  streams, game  poaching,                                                            
and the  increased risk  of human  caused fires.   Alaska can  do it                                                            
differently  by giving the  Forest Service  another tool to  protect                                                            
the national forests for the benefit of all its users.                                                                          
                                                                                                                                
SENATOR TAYLOR asked Ms.  Schrader if she saw a program on C-SPAN in                                                            
which the  Senate Energy  and Resources Committee  had Secretary  of                                                            
Agriculture Mike Dombeck  (ph) and Undersecretary of Agriculture Jim                                                            
Lyons answer  questions about  this policy.  Ms. Schrader  indicated                                                            
she hadn't.                                                                                                                     
                                                                                                                                
SENATOR TAYLOR said according  to statements made by Mr. Dombeck and                                                            
Mr. Lyons,  Governor  Knowles said in his letter that  this would be                                                            
an  outrage  and a  double-cross.    Her  presentation  sounds  very                                                            
different  from the  comments  made by  Mr. Dombeck  and Mr.  Lyons.                                                            
Senator  Craig, who  conducted  the hearing,  was  quite shocked  to                                                            
learn that this policy  was considered with no public input and that                                                            
environmental organizations  wrote letters directly to the Secretary                                                            
who gave them to the President.                                                                                                 
                                                                                                                                
SENATOR LINCOLN  said she thinks the Majority isn't  keeping Senator                                                            
Taylor busy enough if he  has the time to watch so many TV programs.                                                            
She asked  why the  Governor's letter  and the  Chamber of  Commerce                                                            
spoke only  to the Tongass  National Forest  while HJR 54 speaks  to                                                            
both the Tongass and the Chugach National Forests.                                                                              
                                                                                                                                
SENATOR TAYLOR answered  that the reason is because of the timing of                                                            
when the policies were  announced and when the letters occurred.  No                                                            
initial discussion occurred  about the Chugach but many issues about                                                            
the Tongass were pending.   The Chugach was included in the roadless                                                            
policy since that time.                                                                                                         
                                                                                                                                
Number 2150                                                                                                                     
                                                                                                                                
CHAIRMAN HALFORD added  that some provisions of the resolution apply                                                            
more to the  Tongass, such as timber  harvest, and other  provisions                                                            
apply more to  the Chugach, such as the beetle infestation  problem.                                                            
                                                                                                                                
SENATOR TAYLOR  moved to pass HJR 54 from committee  with individual                                                            
recommendations.   There were no objections  and it was so  ordered.                                                            
                                                                                                                                
CHAIRMAN HALFORD adjourned the meeting at 4:05 p.m.                                                                             
                                                                                                                                

Document Name Date/Time Subjects