Legislature(2001 - 2002)

01/29/2001 03:35 PM Senate RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                     ALASKA STATE LEGISLATURE                                                                                   
                    SENATE RESOURCES COMMITTEE                                                                                
                         January 29, 2001                                                                                       
                             3:35 p.m.                                                                                          
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator John Torgerson, Chair                                                                                                   
Senator Drue Pearce, Vice Chair                                                                                                 
Senator Rick Halford                                                                                                            
Senator Robin Taylor                                                                                                            
Senator Georgianna Lincoln                                                                                                      
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Pete Kelly                                                                                                              
Senator Kim Elton                                                                                                               
                                                                                                                              
OTHER MEMBERS PRESENT                                                                                                         
                                                                                                                              
Senator Loren Leman                                                                                                             
                                                                                                                              
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
Department of Law:  Status of Alaska's resource cases                                                                           
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
Ms. Barbara Ritchie, Deputy Attorney General                                                                                    
Civil Division                                                                                                                  
Department of Law                                                                                                               
P.O. Box 110300                                                                                                                 
Juneau AK 99811                                                                                                                 
POSITION STATEMENT:  Commented on resource cases.                                                                             
                                                                                                                                
Ms. Joanne Grace, Assistant Attorney General                                                                                    
Department of Law                                                                                                               
1031 W 4th Ave., Suite 200                                                                                                      
Anchorage AK 99501                                                                                                              
POSITION STATEMENT:  Commented on resource cases.                                                                             
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
TAPE 01-4, SIDE A                                                                                                             
Number 001                                                                                                                      
                                                                                                                                
CHAIRMAN JOHN TORGERSON called the Senate Resources Committee                                                                 
meeting to order at 3:35 pm and announced the committee would hear                                                              
an update by  the Department of Law  of the state's resource  cases.                                                            
                                                                                                                                
MS. BARBARA  RITCHIE, Deputy  Attorney General,  Department  of Law,                                                            
said  her  main  role today  was  to  introduce  Ms.  Joanne  Grace,                                                            
Assistant Attorney  General, head of the statehood  defense section.                                                            
                                                                                                                                
MS. JOANNE  GRACE said she would focus  primarily on the  cases that                                                            
have undergone  the most  change in  the last  year, like the  Katie                                                            
John case  and the  Glacier Bay  case, which really  involve  all of                                                            
Southeast Alaska.  She  is getting ready to file another case within                                                            
the  next day  or two  on the  roadless  directive  for the  Tongass                                                            
National Forest that she would comment on, also. She explained:                                                                 
                                                                                                                                
     The Katie  John case - we appealed  the final judgment  in                                                                 
     that  case exactly a  year ago and after  a few months  we                                                                 
     asked  the Ninth Circuit  to consider  the case 'en  banc'                                                                 
     rather than  to consider it again with just three  judges.                                                                 
     In the  Ninth Circuit that means  11 judges hear the  case                                                                 
     instead  of just three  judges.  Ninth  Circuit agreed  to                                                                 
     hear  the case en banc  and we briefed  it and argued  it.                                                                 
     So we're now before the  Ninth Circuit again.  I would say                                                                 
     we're  at a really critical  stage in  this case not  only                                                                 
     because  it's nearing the end  of its existence, but  also                                                                 
     because  having survived  for 10  years, the  case is  now                                                                 
     intercepting  a distinct trend in Supreme Court  case law.                                                                 
                                                                                                                                
     The Supreme Court more and  more recently has been willing                                                                 
     to  identify and  precisely  define limits  on Congress's                                                                  
     authority  to interfere with traditional state  functions.                                                                 
     The  case law that's  coming out of  the Supreme Court  on                                                                 
     federal/state  balance of power  issues is much different                                                                  
     today  than it was 10 years ago.   So our argument in  the                                                                 
     Katie John case is based  on one of the issues the Supreme                                                                 
     Court is finding particularly  important these days.  It's                                                                 
     called the Clear Statement Doctrine.                                                                                       
                                                                                                                                
     Under the  Clear Statement Doctrine, a federal  court will                                                                 
     not  assume   that  Congress  intended  to  take   over  a                                                                 
     traditional  state function  unless Congress  has made  it                                                                 
     unmistakably clear that's  what it intends to do.  So it's                                                                 
     absolutely plain to anyone  reading the act. The reason is                                                                 
     that Congress will not shift  the balance of power between                                                                 
     a state  and the federal government  lightly. You are  not                                                                 
     going to assume Congress intended to do that.                                                                              
                                                                                                                                
     This  is a  doctrine that  developed  out of  a 1991  case                                                                 
     called  Ashcroft  v.  Gregory.   In  that case  the  issue                                                                 
     before  the court was  whether the  Missouri constitution                                                                  
     that mandated that state  judges retire at age 70 violated                                                                 
     a federal  act that  prohibited age  discrimination.   The                                                                 
     court  looked at that issue and  said it's a particularly                                                                  
     state  function  to define  the  qualifications  of  state                                                                 
     officials, particularly  state judges.  It's not something                                                                 
     the federal  government normally  involves itself in.  The                                                                 
     Age  Discrimination   Act  had  an  exception  in  it  for                                                                 
     appointees  on a policy making  level.  The court said  it                                                                 
     is not clear whether state  judges fit into this exception                                                                 
     or not.  So  we are going to refuse to find that  Congress                                                                 
     intended to  designate the qualifications of state  judges                                                                 
     because  Congress  hasn't made  it absolutely  clear  that                                                                 
     that  is what it  intends to  do.  The  court also didn't                                                                  
     seem  to think  that Congress  would have  that authority                                                                  
     even if that had been its intent.                                                                                          
                                                                                                                                
     So this is  the doctrine we are arguing in the  Katie John                                                                 
     case. Our  argument is that federal takeover of  fisheries                                                                 
     management  on most  of Alaska's  navigable  waters is  an                                                                 
     assumption   of  a   traditional  state   authority   and,                                                                 
     therefore,  the court  could  not find that  Congress  had                                                                 
     that intent  unless Congress made that unmistakably  clear                                                                 
     in the language  of ANILCA (Alaska National Interest  Land                                                                 
     Claims Act).                                                                                                               
                                                                                                                                
     There's a lot of good argument  on our part that fisheries                                                                 
     management  is a  traditional  state function.   The  U.S.                                                                 
     Supreme  Court has  said for  150 years  that states  take                                                                 
     title   to  the  land  underlying   navigable  waters   at                                                                 
     statehood  because  the  state  has  dominion  over  those                                                                 
     waters.  The state has an  obligation to manage the waters                                                                 
     in the resources  in trust for the public for  fishing and                                                                 
     transportation  and  other public  uses.   Therefore,  the                                                                 
     state has an obligation  to conserve those resources which                                                                 
     means  it  has an  obligation  to limit  uses  by setting                                                                  
     seasons,  means and methods,  bag limits, and things  like                                                                 
     that.   That  has always  been understood  to  be a  state                                                                 
     function.                                                                                                                  
                                                                                                                                
     So our argument  in the Katie John case in this  appeal is                                                                 
     because  this is a traditional  state function, it has  to                                                                 
     be  unmistakably clear  in ANILCA that  Congress intended                                                                  
     the  federal  subsistence  board to  have  authority  over                                                                 
     navigable  waters where the United  States has reserved  a                                                                 
     water   right.    Our  position   is  that  that  is   not                                                                 
     unmistakably  clear in ANILCA.  If Congress had  wanted to                                                                 
     include  navigable  waters  subject  to a  reserved  water                                                                 
     right,  Congress would have said  that.  It wouldn't  have                                                                 
     done it in  the roundabout way that the United  States has                                                                 
     argued.  It's  obviously not clear from the statute  given                                                                 
     the position the parties have taken in this case.                                                                          
                                                                                                                                
     The United  States took the position  in the beginning  of                                                                 
     the litigation  that the statute  did not clearly include                                                                  
     navigable  waters and, in fact, took the position  that it                                                                 
     clearly  did  not  include navigable  waters.    When  the                                                                 
     United  States flipped its position  three years into  the                                                                 
     litigation, it didn't change  its mind about the clearness                                                                 
     of the  statute.  It  didn't say we  were wrong; actually                                                                  
     it's  absolutely  clear  in  the  statute  that navigable                                                                  
     waters were  intended to be included.  It simply  said the                                                                 
     statute  is ambiguous.   We  can't tell  from the statute                                                                  
     whether  Congress  intended  to  include  these navigable                                                                  
     waters,  but  as  a  federal  agency,  it's  our  duty  to                                                                 
     interpret  this statute and resolve  ambiguities - and  we                                                                 
     think it's  reasonable to interpret it to include  certain                                                                 
     navigable waters.                                                                                                          
                                                                                                                                
     The Alaska  Supreme Court in the Totemoff case  found that                                                                 
     it was clear  those navigable waters were not  included in                                                                 
     the  language of  the statute  and that  Congress did  not                                                                 
     intend  to include those  waters.  In  the original  Ninth                                                                 
     Circuit case, the dissenting  judge, Judge Hall, looked at                                                                 
     the  statute  and  said  it's  not  clear  that  Congress                                                                  
     intended  to include these waters.  It's not our place  as                                                                 
     judges to  decide that they should be included.   Congress                                                                 
     has to  do it.  Even the two  judges who decided the  case                                                                 
     against the  state did not find the language to  be clear.                                                                 
     Those judges  said we can't tell what Congress  meant from                                                                 
     the  language in  statute.   We can't tell  what Congress                                                                  
     meant from legislative history.  We'll look to the federal                                                                 
     agencies' interpretation.   We find this federal agencies'                                                                 
     interpretation to be reasonable.                                                                                           
                                                                                                                                
     But under  the Clear Statement  Doctrine that the Supreme                                                                  
     Court  applies, it's  not enough  that it's  a reasonable                                                                  
     interpretation.  It has  to be unmistakably clear from the                                                                 
     language  in statute.  So that's  the argument that  we've                                                                 
     made in  this second appeal on  the Katie John case.   The                                                                 
     timing  of this  turned out  to be fortuitous  because  we                                                                 
     argued  it on December  20 and  only two  weeks later  the                                                                 
     United  States Supreme  Court issued a  new decision in  a                                                                 
     different case applying the Clear Statement Doctrine.                                                                      
                                                                                                                                
     That  case, I'm sure  you heard  about it  on the radio  -                                                                 
     it's a really  landmark case for states.  It's  called the                                                                 
     Solid Waste Services of  Northern Cook County v. U.S. Army                                                                 
     Corps  of Engineers.   It's  a case  where  the issue  was                                                                 
     whether the  Corps of Engineers has authority  to regulate                                                                 
     intrastate  waters.  In  this  case it  was  an abandoned                                                                  
     gravel  pit where there was some  migratory waterfowl  and                                                                 
     the  question was whether  it was the  Corps of Engineers                                                                  
     authority  under the Clean Water  Act to issue dredge  and                                                                 
     fill permits  [indisc.] to those  waters. They had issued                                                                  
     regulations  stating  that  their  authority  extended  to                                                                 
     intrastate  waters as long as  there were migratory  birds                                                                 
     that used that water as habitat.                                                                                           
                                                                                                                                
     The  Supreme Court  looked  at the  case and  said it's  a                                                                 
     traditional state function  to regulate intrastate waters.                                                                 
     It's not clear  from language of the Clean Water  Act that                                                                 
     Congress   intended   these  agencies   to  extend   their                                                                 
     authority that far.  It's  unclear.  Also, again the court                                                                 
     seemed  to think  that if  Congress had  made that clear,                                                                  
     Congress's  commerce  clause  authority  probably  didn't                                                                  
     extend  that far.  So, it refused  to interpret the  Clean                                                                 
     Water  Act to  give the Corps  of Engineers  authority  to                                                                 
     regulate intrastate waters.                                                                                                
                                                                                                                                
     We just  think that the climate  is right for the kind  of                                                                 
     arguments we're making in  the Katie John case.  The Court                                                                 
     actually has  another case before it now under  Congress's                                                                 
     spending clause  authority.  It's an Alabama case  and the                                                                 
     issue  in  that  case  is  whether  the  state's  English                                                                  
     proficiency  requirement  for  driver's  license violates                                                                  
     Title  6 of  the Civil  Rights Act.  Again,  it's a  clear                                                                 
     statement doctrine argument  that the state is making.  It                                                                 
     has to  be clear that Congress  is intending that statute                                                                  
     to apply.   So, this  is definitely an  area a lot of  the                                                                 
     Supreme  Court is focusing on.   It's cutting back on  the                                                                 
     general understanding  of what Congress's authority  is to                                                                 
     take over  traditional state  functions and it's refusing                                                                  
     to  interpret   laws  to  have  the  effect  of  shifting                                                                  
     state/federal   authority  unless  Congress  has  made  it                                                                 
     perfectly clear that that's what it intends to do.                                                                         
                                                                                                                                
     Not predicting that we're  going to lose the Ninth Circuit                                                                 
     case and,  therefore, the Supreme  Court is going to  hear                                                                 
     this,  but I'm  assuming the  Ninth Circuit  is following                                                                  
     this  trend and  is well  aware that  it needs  to follow                                                                  
     Supreme  Court authority.  If  it doesn't, it seems  to me                                                                 
     this is the  kind of case that the Supreme Court  would be                                                                 
     interested  in hearing  -  partially because  it involves                                                                  
     this issue  of state/federal  authority and also because,                                                                  
     at  this  point, it  would  be  an en  banc  decision  and                                                                 
     probably with  a dissent and that's the kind of  case that                                                                 
     the Supreme Court is more likely to take.                                                                                  
                                                                                                                                
Number 899                                                                                                                      
                                                                                                                                
SENATOR TAYLOR  thanked her  for the explanation  and asked,  "Judge                                                            
Holland's opinion  in the Babbitt  case where he said that  Congress                                                            
in  ANILCA  had not  provided  any  authorization  for  creation  of                                                            
regulations and hoped they  must have intended to do so.  That seems                                                            
directly contrary to the Clear Statement Doctrine."                                                                             
                                                                                                                                
MS.  GRACE replied,  "It is  obviously  completely  contrary to  the                                                            
Supreme Court  law in this area and I don't believe  that he had any                                                            
authority for making that statement."                                                                                           
                                                                                                                                
SENATOR  TAYLOR responded  that  that was  the case  the  Department                                                            
dismissed  in the final hour  and asked if  there is opportunity  at                                                            
this juncture  to reopen that and ask the judge in  light of current                                                            
law to reconsider that decision.                                                                                                
                                                                                                                                
MS.  GRACE  answered,  "The  state   agreed  to  dismiss  that  with                                                            
prejudice  and we  would not  be in a  position to  bring that  ever                                                            
again.  That's  not to say that the issue couldn't  arise again, but                                                            
the state couldn't raise it directly in a new case."                                                                            
                                                                                                                                
Number 1000                                                                                                                     
                                                                                                                                
SENATOR TAYLOR  said he thought there was some authority  and added:                                                            
                                                                                                                                
     An executive  on behalf of the  state cannot diminish  the                                                                 
     sovereignty of that state  in their unilateral action.  In                                                                 
     other  words,   the  executive  making  the  decision   to                                                                 
     instruct   the  Attorney  General  to  dismiss   the  case                                                                 
     significantly  impacted  the  sovereignty  and  the  equal                                                                 
     rights,  if you will, of the  people of Alaska - not  only                                                                 
     on  under  their  constitution,   but  under  the federal                                                                  
     constitution.  And I don't  think that's an authority or a                                                                 
     right that an elected governor  has.  And I think there is                                                                 
     some  case law on the  subject. As a  consequence, if  you                                                                 
     could get back to me, I'd  appreciate it, because that may                                                                 
     very well  provide, if not this administration,  certainly                                                                 
     the next administration,  the opportunity to revisit  that                                                                 
     issue  even  though  I  realize  the  executive   and  the                                                                 
     attorney  general  consented to  a dismissal  of the  case                                                                 
     against  us.  I don't  believe they  had any authority  to                                                                 
     diminish the  sovereign rights of the people of  the State                                                                 
     of Alaska by that unilateral action.                                                                                       
                                                                                                                                
SENATOR LINCOLN  said she  had been asked  the following question  a                                                            
number of times and would pass it on to Ms. Grace:                                                                              
                                                                                                                                
     As you know,  Ms. Norton has been nominated for  Secretary                                                                 
     of Interior and listening  to you describe the events that                                                                 
     have lead  us to this point in  time; - you know that  Ms.                                                                 
     Norton was  also involved in the, - I'm not sure  what the                                                                 
     term  is, for a brief  for the subsistence  issue and  was                                                                 
     quoted  in the  media that she  would not  be involved  in                                                                 
     this issue for a year.   I don't know what that means, but                                                                 
     if the  courts don't rule in  your favor, then how do  you                                                                 
     view  Ms. Norton?  Should  she be confirmed?   How do  you                                                                 
     view  her nomination  or her  role in resolution  of  this                                                                 
     issue?                                                                                                                     
                                                                                                                                
MS. GRACE answered  that she didn't know what Ms.  Norton's position                                                            
would be, but  presumably she would be in a position  to reinterpret                                                            
the law.   The Department  of Interior is  not bound forever  by its                                                            
position on any  issue as evidenced by the fact that  it changed its                                                            
position  on this very  issue after President  Clinton was  elected.                                                            
"I would be  somewhat surprised if  any new administration  would do                                                            
that very lightly.   I would not expect  the Department of  Interior                                                            
to  change   its  position   on  this   issue  without   a  lot   of                                                            
consideration."                                                                                                                 
                                                                                                                                
SENATOR LINCOLN  asked if that was  an avenue the Department  of Law                                                            
would pursue.                                                                                                                   
                                                                                                                                
MS. GRACE replied  that the Department of Law would  probably not do                                                            
that on  its own.  That  would be a policy  choice by the  governor.                                                            
She has had no indication that they would try that.                                                                             
                                                                                                                                
SENATOR TAYLOR  noted that the governor  had made statements  on the                                                            
roadless issue  and asked when the  Attorney General's office  would                                                            
be filing suit.                                                                                                                 
                                                                                                                                
MS. GRACE  said the Department  would file  a complaint tomorrow  or                                                            
the  next day.   She  said  she could  summarize  the  case for  the                                                            
committee although she hadn't worked on it personally.                                                                          
                                                                                                                                
CHAIRMAN TORGERSON asked  when the court finally put the Ashcroft v.                                                            
Gregory in place as the Clear Statement Doctrine.                                                                               
                                                                                                                                
MS. GRACE replied that the decision was issued in 1991:                                                                         
                                                                                                                                
     The Supreme  Court has applied it three times,  because of                                                                 
     that decision  that just came  out a couple of weeks  ago.                                                                 
     In   one  decision   the  court  found   that  a  state's                                                                  
     foreclosure   laws  fell  under   a  state's  traditional                                                                  
     authority  and it refused to find that federal  bankruptcy                                                                 
     laws  usurped the  state's  foreclosure laws,  because  it                                                                 
     found that the state's interest  in the stability of title                                                                 
     to  lands  within  its  state  was  a  traditional   state                                                                 
     function  and,  therefore, the  Clear  Statement Doctrine                                                                  
     should  apply in  that case.   And then there  was a  case                                                                 
     involving   the  issue  of  whether   the  American   with                                                                 
     Disabilities  Act  should  apply to  state prisons.    The                                                                 
     state  in  that  case  argued  that  the Clear  Statement                                                                  
     Doctrine should apply.   The court said, assuming that the                                                                 
     Clear  Statement  Doctrine  should  apply, we  think  that                                                                 
     state's  regulation of  its own prisons  is a traditional                                                                  
     state  authority.   But  we  think the  federal  law  very                                                                 
     clearly  intends  the American  with Disabilities  Act  to                                                                 
     apply to state prisons.                                                                                                    
                                                                                                                                
     So I think that those three  cases along with the Corps of                                                                 
     Engineers,  the Clean Water Act case demonstrate  that the                                                                 
     court  is being fairly liberal  in defining a traditional                                                                  
     state  authority.    I  don't  think  there's  really  any                                                                 
     question as  to whether state management of fisheries  and                                                                 
     navigable  waters  is a  state function.   That  is not  a                                                                 
     tough  argument  to make.   I  think  the court  is  being                                                                 
     fairly  generous  in  finding  state   regulation  in  the                                                                 
     particular  cases  that have  come  up to  be traditional                                                                  
     state   functions  that   federal  laws   usurping   those                                                                 
     functions  would be a dramatic shift or enough  of a shift                                                                 
     in  state/federal  authority  to require  Congress  to  be                                                                 
     unmistakably clear.                                                                                                        
                                                                                                                                
CHAIRMAN TORGERSON said he found it interesting that we're not                                                                  
taking it on as a state's right issue instead of a loop hole.  He                                                               
asked Ms. Grace to describe the roadless case.                                                                                  
                                                                                                                                
MS. GRACE said:                                                                                                                 
                                                                                                                                
     The  roadless  case  is  based on  a  directive  that  was                                                                 
     published  in  the federal  register  on January  12  that                                                                 
     prohibits  road construction,  reconstruction, and timber                                                                  
     harvest  in areas  that are  called  inventoried roadless                                                                  
     areas.   This means for the Chugach  National Forest  that                                                                 
     98.9  percent  of  the  forest  will  be  closed  to  road                                                                 
     construction,  reconstruction,  or timber  harvest and  in                                                                 
     the  Tongass,  90 percent  of  it will  be.   The state's                                                                  
     position   on  this  is  that  this  amounts  to  defacto                                                                  
     wilderness status of these areas by executive action.                                                                      
                                                                                                                                
     She understands  that the core of the state's  claims will                                                                 
     be  that the  roadless  directive permanently  eliminates                                                                  
     processes   for  land  use  planning  that  Congress   has                                                                 
     required under federal law  so that, for example, Congress                                                                 
     has provided  in the Wilderness Act that there  will be no                                                                 
     more   wilderness   designation   without   Congressional                                                                  
     approval.  Congress has  provided in the National Interest                                                                 
     Lands  Conservation  Act  that  no  public  lands  can  be                                                                 
     withdrawn   over   5,000   acres  without   Congressional                                                                  
     approval.   Congress has provided  in the National Forest                                                                  
     Management  Act that there are certain processes  that the                                                                 
     Forest  Service  must go  through  for land  use planning                                                                  
     including  such things as considering  the unique factors                                                                  
     of a  particular forest,  for example  in the Chugach  the                                                                 
     one  million  acres  of dead  spruce  and  the increasing                                                                  
     public  use of the  forest that might  call for increased                                                                  
     trails  and roads.   Also, I  think, as  I understand  it,                                                                 
     that  Act  also requires  that  that  the  Forest Service                                                                  
     consider input from local  communities and from the state.                                                                 
     The  Multiple Use and  Sustained Yield  Act requires  that                                                                 
     the lands be used for multiple  purposes, but the roadless                                                                 
     directive  is so extensive that  it eliminates almost  all                                                                 
     uses.  I think the state's  complaint is going to have two                                                                 
     or three other counts.   It's not in a final draft at this                                                                 
     point,  so  I don't  have  a copy  to  give you,  but  our                                                                 
     intention is to file it by Wednesday.                                                                                      
                                                                                                                                
CHAIRMAN TORGERSON asked if she would be handling that case.                                                                    
                                                                                                                                
MS. GRACE replied  that Ms. Elizabeth  Barry was handling  the case.                                                            
                                                                                                                                
SENATOR PEARCE asked where the case would go first.                                                                             
                                                                                                                                
MS. GRACE replied  that it's going  to be filed in federal  district                                                            
court in Alaska.   The United States always gets 60  days to answer,                                                            
she said.  She thought that there would also be interveners.                                                                    
                                                                                                                                
Number 1603                                                                                                                     
                                                                                                                                
SENATOR PEARCE  asked what  was the legal  status of a directive  on                                                            
the federal register.                                                                                                           
                                                                                                                                
MS. GRACE replied  that she didn't  know if it's a regulation  or an                                                            
executive order.                                                                                                                
                                                                                                                                
SENATOR TAYLOR asked why  they didn't file a direct action suit like                                                            
the state did in the Southeast waters case.                                                                                     
                                                                                                                                
MS. GRACE explained  that the kinds of cases the Supreme  Court will                                                            
take as regional  actions, even though technically  it will consider                                                            
actions  between a  state and  the United  States,  are really  much                                                            
narrower  than that and  usually involve  boundary disputes  between                                                            
states or coastal  boundary disputes between a state  and the United                                                            
States.  She  didn't believe that  was the kind of case the  Supreme                                                            
Court would take as a regional action.                                                                                          
                                                                                                                                
SENATOR TAYLOR asked if  Ms. Barry was working with any of the other                                                            
western attorney generals on this issue.                                                                                        
                                                                                                                                
MS. GRACE answered  that she was working with an assistant  attorney                                                            
general who is handling  the case in Idaho, Steve Strack. She didn't                                                            
know about Washington.  Western states generally work together.                                                                 
                                                                                                                                
SENATOR TAYLOR remarked  that he had been reminded by his friends in                                                            
the  placer mining  business  that BLM  has  now come  out with  new                                                            
[indisc.]  making  directives   also,  which  may  have devastating                                                             
impacts on our placer mining  industry as far as the amount of money                                                            
that has  to be paid up front  each year for  a claim.  We  set up a                                                            
bonding process for placer  miners, but it's apparently not adequate                                                            
and we're not recognized  in BLM. He added, "It would be very costly                                                            
and probably  drive a  good portion  of them out  of business."   He                                                            
wanted to know if her department was aware of that.                                                                             
                                                                                                                                
MS. GRACE replied  that hadn't come to her attention,  but they have                                                            
a separate  section in the Attorney  General's office, the  Oil, Gas                                                            
and Mining Section handles those issues.                                                                                        
                                                                                                                                
MS. GRACE  said she  wanted to talk  about a  Southeast lands  case.                                                            
Three  major  things  have  happened  since   the last  legislative                                                             
session.   The first  thing is that  the Supreme  Court granted  the                                                            
State of  Alaska's motion  to take the case  as an original  action.                                                            
This means,  essentially, they accepted  the state's complaint.  She                                                            
continued:                                                                                                                      
                                                                                                                                
     The  United States answered  it.  That  happened in  June.                                                                 
     In October,  the court appointed a special master  to hear                                                                 
     evidence  in the  case.  This  is an  extremely important                                                                  
     part of the  case, because the Supreme Court,  even though                                                                 
     it  will  sit as  an  original  court in  rare  cases,  it                                                                 
     doesn't sit  a trial.  So it appoints a special  master to                                                                 
     hear the evidence  that we have to present, possibly  come                                                                 
     up to  Alaska, take a look at  the Alexander Archipelago,                                                                  
     and  take  a look  at  Glacier  Bay, and  make  a written                                                                  
     recommendation   to the  Supreme  Court.    This  kind  of                                                                 
      recommendation carries a lot of weight with the court.                                                                    
                                                                                                                                
     The court  appointed, in October, Professor Gregory  Maggs                                                                 
     from George  Washington University  Law School.  He  has a                                                                 
     very impressive resume'.                                                                                                   
                                                                                                                                
     Attorneys  on the case  are going to  Washington D.C.  and                                                                 
     meet the special master and go over the case.                                                                              
                                                                                                                                
     The third thing that happened  is that we filed the motion                                                                 
     with the  Supreme Court asking  to amend the complaint  to                                                                 
     add  a fourth  count.    The Supreme  Court  granted  that                                                                 
     motion  very recently.   I wanted to  explain this fourth                                                                  
     count  to you  because it  is different  than the others.                                                                  
     It's not a  self evident kind of claim.  In general,  this                                                                 
     is a quiet  title action to submerged  lands in Southeast                                                                  
     Alaska.   It's a boundary dispute  with the United States                                                                  
     about  where  Alaska's  boundaries  begin  and  where  the                                                                 
     United  States  boundaries  end.   In general,  under  the                                                                 
     Submerged  Lands Act,  a state's boundaries  are measured                                                                  
     from its legal coastline.   The legal coastline is defined                                                                 
     as the  line of mean low water  where the coast faces  the                                                                 
     open  sea and  the line  demarking  the seaward  limit  of                                                                 
     inland waters.   Inland waters are, essentially,  internal                                                                 
     waters  of the  state.  One  of the state's  arguments  in                                                                 
     this  case is  that all  of the  waters of  the Alexander                                                                  
     Archipelago are inland waters.   Those are all of Alaska's                                                                 
     waters  and the coastline skirts  the western edge of  the                                                                 
     Alexander Archipelago and  our boundary is three miles out                                                                 
     from that line.                                                                                                            
                                                                                                                                
     We had in  our complaint originally, a count that  alleged                                                                 
     that  all the  waters  of the  Alexander  Archipelago  are                                                                 
     inland  waters.   You can  see this,  by the  way, on  the                                                                 
     second map in here that is labeled exhibit 1.                                                                              
                                                                                                                                
     The United States claims  that Alaska's boundaries only go                                                                 
     three miles out from its  natural coastline.  So there are                                                                 
     these   pockets   and  enclaves   within   the  Alexander                                                                  
     Archipelago  that are marked  in red on this map that  are                                                                 
     not  state  waters.    Those  are  not  within  the  state                                                                 
     boundaries of Alaska.                                                                                                      
                                                                                                                                
     We had  in our original complaint  a claim that these  are                                                                 
     inland  waters  because they  are  historic waters.    The                                                                 
     United  States Supreme  Court determines  what are inland                                                                  
     waters.  And the Supreme  Court relies on an international                                                                 
     treaty   called  the  International   Convention  on   the                                                                 
     Territorial Contiguous Zone.   It's a treaty that lays out                                                                 
     rules  for how countries  define their  boundaries vis  a'                                                                 
     vis  other countries.   So, under the  convention, if  the                                                                 
     United  States has historically  treated waters as inland                                                                  
     waters of  the United States and if other foreign  nations                                                                 
     have acquiesced  in that characterization, then  those are                                                                 
     inland  waters  of  the  state  when  the  state  becomes                                                                  
     [indisc.]  And we  have evidence  that the  United States                                                                  
     treated the waters of the  Alexander Archipelago as waters                                                                 
     of  the United  States  as early  as  1903 in  the Alaska                                                                  
     Boundary arbitration between  the United States and Canada                                                                 
     which was an arbitration  to draw the boundary between the                                                                 
     United  States and Great Britain.   It was an arbitration                                                                  
     to determine the boundary between Alaska and Canada.                                                                       
                                                                                                                                
     The United  States took the position  in that arbitration                                                                  
     that those  were inland waters  of the United States,  not                                                                 
     open  to  vessels   of  foreign  nations.  Great  Britain                                                                  
     acquiesced  in that characterization - as did  Norway.  We                                                                 
     have  evidence that  the United  States  continually  took                                                                 
     that position until 1971  when they published these charts                                                                 
     that show  the doughnut holes.  But that claim  depends on                                                                 
     us  essentially  proving  the  subjective  intent  of  the                                                                 
     United  States.  We have to prove  what the United States                                                                  
     thought.  We have to prove that  they continually thought                                                                  
     that  and we  have to prove  that foreign  nations agreed                                                                  
     with that.                                                                                                                 
                                                                                                                                
     So  we came up  with a second  theory  that is completely                                                                  
     objective  and doesn't  depend on what  the Untied States                                                                  
     thought.   This  is based  on  the theory  that Southeast                                                                  
     Alaska is  made up of juridical bays.  Juridical  bays are                                                                 
     simply  legally  defined   bays.    This  comes  from  the                                                                 
     convention.   Under  the convention,  if a  bay meets  the                                                                 
     definition  of a juridical bay,  then it is inland waters                                                                  
     owned by the state.  End  of the case.  So, if you look at                                                                 
     the fourth  map in here, the one entitled juridical  bays,                                                                 
     you can see that you may  not have realized that southeast                                                                 
     Alaska was  made up of two large bays and two  small bays,                                                                 
     but, in  fact, it is.  There  is the north southeast  bay,                                                                 
     that we designated  in green, that goes from Cape  Spencer                                                                 
     down to Coronation Island  and the south bay is Coronation                                                                 
     Island  down to Cape  Fox.  There is  a third bay that  is                                                                 
     Sitka Sound and the fourth bay is Cordova Bay.                                                                             
                                                                                                                                
     If we  can establish that these  bays meet the definition                                                                  
     of juridical  bay under Article 7 of the Convention,  then                                                                 
     these   are  inland  waters   for  purposes  of  Alaska's                                                                  
     boundary.    The requirements   for a  juridical  bay  are                                                                 
     essentially  two.  The first requirement is the  bays must                                                                 
     be   well    marked,   deeply-penetrating    indentations                                                                  
     containing  land-locked waters.   This is not a difficult                                                                  
     test  for us to meet  because of the  islands that are  in                                                                 
     the mouths  of these bays.  Land-locked means  essentially                                                                 
     that the  water has to be surrounded  in three directions                                                                  
     by  land.  If  you look at  the water  areas of Southeast                                                                  
     Alaska, most  of those areas are surrounded on  four sides                                                                 
     by land.   Also, it must provide  protection to a mariner                                                                  
     on at  least three sides.  One  side can be the open  sea,                                                                 
     but  it must  provide  protection  on  three sides.    The                                                                 
     reason  for this  is  that, again,  the convention  is  an                                                                 
     international document and  the idea is that inland waters                                                                 
     are so much a part of the  land of the sovereign that they                                                                 
     should  be within the boundaries  of the sovereign.   They                                                                 
     shouldn't  be considered  open seas.   The idea is that  a                                                                 
     mariner traveling  in these waters would know  that he had                                                                 
     infringed on the area of a sovereign nation.                                                                               
                                                                                                                                
     Southeast  Alaska,  it seems  to  us, clearly  meets  that                                                                 
     definition.   Coastal  towns  in Southeast  Alaska are  so                                                                 
     much a  part of the water; there's  such a close affinity                                                                  
     between the  towns of southeast Alaska and the  water that                                                                 
     it's ridiculous  to think of  this area as being anything                                                                  
     but within  the boundaries of  the state of Alaska.   It's                                                                 
     O.K. that  part of the indentation of this bay  is made up                                                                 
     of  these islands,  of  Kuiu Island,  Mitkof  Island,  and                                                                 
     Kupreanof  Island.  Under the terms of the convention,  if                                                                 
     islands can be assimilated  to the mainland, they fit that                                                                 
     geographic  formation.  In other words, these  islands are                                                                 
     so large  and so close together  and have such narrow  and                                                                 
     shallow  straights  between  them,  that  the  court  will                                                                 
     consider  them to  be assimilated  with  the mainland  for                                                                 
     purposes of defining these bays.                                                                                           
                                                                                                                                
     The  second requirement  for defining  a juridical bay  is                                                                 
     that the bay  has to meet the semicircle test.   What that                                                                 
     means  is that the bay must be  as large or larger than  a                                                                 
     semicircle whose diameter  is the line across the mouth of                                                                 
     the bay.   In this case, again, having the islands  in the                                                                 
     mouths of the bay really  helps us, because the lines that                                                                 
     close  the  bay  do  not  have  to  go  from  headland  to                                                                 
     headland.   They can  go from headland  to the island  and                                                                 
     from the  island to the bottom  headland.  So if you  look                                                                 
     at the map,  for example, the north bay we've  designated,                                                                 
     there's  only two  small closing  lines.  If  you add  the                                                                 
     length  of those two  lines together  the semicircle  only                                                                 
     needs to have a diameter  of that length.  You can see the                                                                 
     bays easily meet that requirement.                                                                                         
                                                                                                                                
     The  new claim we have  added to our  case, the court  has                                                                 
     accepted it.  The special  master has asked us all to come                                                                 
     to  Washington  D.C.  in  February  and  come  up  with  a                                                                 
     management plan for the  case.  We already had discussions                                                                 
     with  the United  States and  have come to  terms on  what                                                                 
     we're thinking  in terms of a schedule with the  case.  We                                                                 
     expect that we will have  a trial in the case probably, we                                                                 
     hope, in Anchorage, as opposed  to Washington D.C. or some                                                                 
     place  else in  the summer of  2002 or  2003 depending  on                                                                 
     whether part  of the case is resolved on summary  judgment                                                                 
     just on pleadings.  Then  we would expect that the special                                                                 
     master  would issue a report  within six months or a  year                                                                 
     of the trial and we would  have briefing before the United                                                                 
     States Supreme Court.                                                                                                      
                                                                                                                                
Number 2039                                                                                                                     
                                                                                                                                
SENATOR  TAYLOR said he  had been  told for many  years by the  U.S.                                                            
Forest   Service  representatives   in  Southeast   that  they   had                                                            
documentation  which  indicated  that they  had reserved  the  water                                                            
rights of the  Tongass at some point  in time.  He asked,  "Pursuant                                                            
to our  discussions, I  requested that documentation  from  the U.S.                                                            
Forest Service  in July and I have had absolutely  no response to my                                                            
letter and wondered if you had in the discovery process."                                                                       
                                                                                                                                
MS. GRACE replied that  they are just starting the discovery process                                                            
and hadn't received any documents at all. She told members:                                                                     
                                                                                                                                
     We  have a  lot of  evidence that  they have  not treated                                                                  
     these  waters as if  they are within  the Forest Service.                                                                  
     The  Solicitor of  the Department  of Interior  issued  an                                                                 
     opinion  in the '50s saying these  are not Forest Service                                                                  
     waters.    We  don't  manage  them.   And  we  have  other                                                                 
     evidence from the Statehood  Act discussions and from some                                                                 
     lighthouse reservations  when they were rewrote; I take it                                                                 
     from  the answer  that  the United  States filed  in  this                                                                 
     case.   The only thing  I can infer  from their answer  is                                                                 
     that  they consider  the  marine  water of  the Alexander                                                                  
     Archipelago  to  be part  of the  total ecosystem  of  the                                                                 
     forest.   Therefore,  retention of  those submerged  lands                                                                 
     were necessary  when the forest  was created, because  you                                                                 
     can't separate the waters  from the forest for purposes of                                                                 
     the  forest.  That's  about as  well as  I can articulate                                                                  
     what I've understood their theory to be.                                                                                   
                                                                                                                                
SENATOR TAYLOR  said he had been informed  that this was  a document                                                            
and  not  made  up  out   of  someone's  definition  of   ecosystem.                                                            
Apparently, they told Ms. Grace the same thing.                                                                                 
                                                                                                                                
CHAIRMAN  TORGERSON asked  if the  fourth complaint  would slow  the                                                            
overall case down on our original complaint.                                                                                    
                                                                                                                                
MS. GRACE replied that it didn't, at all.                                                                                       
                                                                                                                                
TAPE 01-4, SIDE B                                                                                                             
Number 2320                                                                                                                   
                                                                                                                              
MS. GRACE continued:                                                                                                            
                                                                                                                                
     The  special  master  was  appointed  in  October  and  we                                                                 
     informed   the  special  master  and  the  United  States                                                                  
     immediately  that we intended to amend the complaint.   He                                                                 
     had already scheduled this  case management conference for                                                                 
     February  and so, what  we did was share  our motion  with                                                                 
     the United  States ahead of time,  before we filed it  and                                                                 
     the United States looked  it over and said we won't oppose                                                                 
     this  if you take  certain arguments  out of your motion.                                                                  
     So,  we did  take  the  arguments out,  because  the  non-                                                                 
     opposition  of the  United States  was very  important  in                                                                 
     getting  the  Supreme  Court to  grant  the motion.    The                                                                 
     Supreme Court granted the  motion very quickly.  It didn't                                                                 
     refer the motion to the  special master as it usually does                                                                 
     in these cases,  I think because the United States  didn't                                                                 
     oppose  it.  We  don't think  it slowed the  case down  at                                                                 
     all.                                                                                                                       
                                                                                                                                
CHAIRMAN  TORGERSON asked  if the United  States was represented  by                                                            
people in Alaska or in D.C.                                                                                                     
                                                                                                                                
MS. GRACE replied that  the United States is always represented when                                                            
it's in  the Supreme  Court by  someone in  the Solicitor  General's                                                            
Office,  the  branch  of the  Department  of  Justice  that  handles                                                            
Supreme Court  cases.  So Jeff Maneer  from the Solicitor  General's                                                            
Office, the  person who's handling  the Microsoft appeal  before the                                                            
Supreme Court,  is handling this case.   And also somebody  from the                                                            
Appellate Division  in Washington D.C. is handling  it, an assistant                                                            
attorney   general   in  Anchorage,   Bruce   Landa,   who   handles                                                            
environmental  cases is on the case  and also the United  States has                                                            
on contract  another retired Department  of Justice Attorney  in San                                                            
Diego.  So  there's four people handling  it for the United  States,                                                            
one of whom is from Alaska.                                                                                                     
                                                                                                                                
MS.  GRACE said  that those  are the  federal  relations  litigation                                                            
cases that are  active right now.  She wanted to comment  on some of                                                            
last year's  questions on 17 B easement  terminations, because  that                                                            
looks like it's becoming active, as well. She said:                                                                             
                                                                                                                                
     These  are easements  that were created  when the federal                                                                  
     government conveyed land  to Native corporations.  Certain                                                                 
     easements  were retained  so  that the public  would  have                                                                 
     access to  publicly owned lands and major waterways.   The                                                                 
     BLM promulgated  regulations that provided that  easements                                                                 
     that were  not being used for  the purpose for which  they                                                                 
     were  created would  be terminated by  December 18,  2001.                                                                 
     The   BLM  has  now   begun  this  process   and  is   now                                                                 
     investigating  which easements are not being used  for the                                                                 
     purpose for which they were  created.  The regulations say                                                                 
     that among  other things that it will terminate  easements                                                                 
     for which  there were no reasonable  alternative if  there                                                                 
     is no evidence of present existing use.                                                                                    
                                                                                                                                
     This is a  concern for the state for a couple  of reasons.                                                                 
     One  is  that  I think  it's  not  necessarily  true  that                                                                 
     because  easements  haven't been  used by  now or haven't                                                                  
     been  heavily used by  now, they will  never be used.   We                                                                 
     are  talking, again,  about access for  which there is  no                                                                 
     reasonable alternative.                                                                                                    
                                                                                                                                
     The second  concern is that many  of these easements  have                                                                 
     never been  marked or maintained and that may  be a reason                                                                 
     why  there  is no  evidence  of present  existing  uses  -                                                                 
     because  BLM has never marked  many of them or maintained                                                                  
     any  of  them.    Some  of  them  exist  only  in  a  very                                                                 
     intangible  sense.  So, the process right now  is that the                                                                 
     BLM is, at this point, looking  into present existing uses                                                                 
     on 17 B easements.   It will not announce before  December                                                                 
     2001 that it intends to  terminate any easements.  At that                                                                 
     point it will begin identifying  easements that it intends                                                                 
     to terminate  and there  will be public  notice and  there                                                                 
     will be a chance for comment  before termination and there                                                                 
     will  be a chance for  an appeal.   Terminations will  not                                                                 
     begin until December 2002.   I am sure state agencies will                                                                 
     be following  these terminations  and we'll see what  kind                                                                 
     of designations they make.                                                                                                 
                                                                                                                                
CHAIRMAN TORGERSON asked if she thought that policy would change                                                                
with the new administration.                                                                                                    
                                                                                                                                
MS. GRACE said it depends on what comes to the attention of the                                                                 
administration.                                                                                                                 
                                                                                                                                
CHAIRMAN  TORGERSON  said  he  thought  for them  to  terminate  our                                                            
easement  because  of  non-usage  is  plain  garbage,  because  they                                                            
haven't marked  or defined them.   In some cases, we've been  barred                                                            
from using them.                                                                                                                
                                                                                                                                
Number 2142                                                                                                                     
                                                                                                                                
SENATOR HALFORD asked if there was any provision that allows for                                                                
termination.                                                                                                                    
                                                                                                                                
MS. GRACE answered there is not and said:                                                                                       
                                                                                                                                
     There  is no requirement for  use to set the easements  up                                                                 
     to begin with.  The idea  was we have this public land and                                                                 
     the pattern of ownership  is going to change so that there                                                                 
     will be  no way for the public  to get to the public  land                                                                 
     or  major water  ways and,  therefore, the  United States                                                                  
     will  retain the easement.   It was  enough, according  to                                                                 
     the Department of Interior  Board of Land that there might                                                                 
     be  some future  use.   When they  were created  that  was                                                                 
     enough  - to find  it necessary to  retain the easements,                                                                  
     but  apparently  that  has no  place  in the  decision  to                                                                 
     terminate.   Future use  has no place  in the decision  to                                                                 
     terminate them.                                                                                                            
                                                                                                                                
SNEATOR HALFORD  said he had met with  federal agents on  this issue                                                            
and they were also terminating  some easements where the public land                                                            
to be  accessed by  the easement was  no longer  going to be  public                                                            
land.  For  example, the Native corporation  that had the  land over                                                            
which the 17 B went ended  up, because of other shortages and trades                                                            
back and forth, taking the parcel the access was to.                                                                            
                                                                                                                                
MS. GRACE answered that  there was no reason for an easement in that                                                            
kind of case.   The Alaska BLM has information about  these kinds of                                                            
terminations on  their website. It's probably not  going to be clear                                                            
whether this  is something  to get concerned  about unless we  see a                                                            
proposal for termination.                                                                                                       
                                                                                                                                
SENATOR LINCOLN asked how many easements she was talking about.                                                                 
                                                                                                                                
MS. GRACE  said  she had  no idea and  BLM probably  didn't  either,                                                            
since they were taking a year to figure it out.                                                                                 
                                                                                                                                
CHAIRMAN TORGERSON  said he had requested that information  from our                                                            
State Division of Mining, Land, and Water.                                                                                      
                                                                                                                                
SENATOR HALFORD  asked if all the 17 B easements were  now closed as                                                            
far as the transfers made.   They had to be on the original transfer                                                            
to the Native corporations.                                                                                                     
                                                                                                                                
MS. GRACE answered if he  was asking if BLM could create an easement                                                            
after the land had been conveyed.                                                                                               
                                                                                                                                
SENATOR HALFORD  asked if once they  withdraw a 17 B easement,  it's                                                            
his understanding  there's no  way it ever  comes back.  It's  a one                                                            
way process.   They are reserved at the time of transfer  and that's                                                            
the only time  it could be reserved and once the transfer  occurred,                                                            
they could never be created again.                                                                                              
                                                                                                                                
MS. GRACE said  that is accurate.   They have to retain the  federal                                                            
interest.   It's theoretically conceivable  that they could  condemn                                                            
an easement, but  ANCSA doesn't provide for that.   The process that                                                            
BLM foresees is  that after they have a final judgment  to terminate                                                            
an easement,  they'll record  the disclaimer,  disclaiming  whatever                                                            
interest  they had in the  easement.  Then  the private land  owner,                                                            
the native  corporation will have  sort of a full bundle  of sticks.                                                            
At that point it would be too late.                                                                                             
                                                                                                                                
SENATOR HALFORD  asked "if the creation of a 17 B  easement - and we                                                            
found  that RS2477s  belong  to basically  anybody  -  is there  any                                                            
private course  of action for an individual who may  have determined                                                            
that they were dependent  on a 17 B easement which is proposed to be                                                            
deleted.                                                                                                                        
                                                                                                                                
MS. GRACE  replied that she  thought an individual  who could  state                                                            
some interest in the easement would have a cause of action.                                                                     
                                                                                                                                
SENATOR HALFORD asked if the state would.                                                                                       
                                                                                                                                
MS. GRACE answered  that it's more  difficult for the state  because                                                            
the state would have to allege standing to bring an action.                                                                     
                                                                                                                                
SENATOR  HALFORD interjected,  "if  the parcel  of  public land  was                                                            
state land that the 17 B easement went to."                                                                                     
                                                                                                                                
MS. GRACE replied,                                                                                                              
                                                                                                                                
     That possibly  would give the  state a stronger interest.                                                                  
     It's  difficult for the  state to file  a lawsuit against                                                                  
     the United  States on behalf  of the people of the state.                                                                  
     That's  called "parens  patriae."  States  can do that  in                                                                 
     general,  but it's difficult  to do it against the United                                                                  
     States, because federal  courts consider the United States                                                                 
     to be the  ultimate parens patriae and the state  wouldn't                                                                 
     have  standing to  question the  actions  of the ultimate                                                                  
     patriae - because the United  States upholds the interests                                                                 
     of the state.                                                                                                              
                                                                                                                                
SENATOR HALFORD asked if there were some holes in that doctrine.                                                                
                                                                                                                                
MS. GRACE  replied not  that she knew  of, "but  if the state  could                                                            
allege some state interest…"                                                                                                    
                                                                                                                                
SENATOR HALFORD  said the state could  have interest in selling  the                                                            
land.                                                                                                                           
                                                                                                                                
MS. GRACE answered  if the easement were to state  land, we'd have a                                                            
much better  case, especially if it  were to a major waterway,  too.                                                            
                                                                                                                                
SENATOR HALFORD  said the next question is "State  submerged land is                                                            
state land."                                                                                                                    
                                                                                                                                
MS. GRACE said  that was right, but  a major waterway and  navigable                                                            
water are not necessarily the exact same.                                                                                       
                                                                                                                                
SENATOR TAYLOR  asked if a  parcel of state  land sits on the  other                                                            
side of  a parcel  of corporate  land and an  easement goes  through                                                            
there, that would  be protected under 17 B, and if  that easement is                                                            
removed at the request  of the owner of that property, then there is                                                            
no access to  cross that property  or right of access to  get to the                                                            
state land.                                                                                                                     
                                                                                                                                
MS. GRACE  said, "Her understanding  is that  they are not  going to                                                            
terminate  easements that  lead to  a completely  isolated piece  of                                                            
land even without  evidence of present  existing use, but  they will                                                            
terminate without  evidence of present existing use  an easement for                                                            
which there is no reasonable alternative."                                                                                      
                                                                                                                                
She tried to  clarify her answer by  saying they will not  terminate                                                            
an  easement to  an isolated  piece  of publicly  owned  land.   She                                                            
thought  that  meant  "the  only way"  regardless  of  the  lack  of                                                            
evidence of present  existing use.  They will terminate  for lack of                                                            
evidence of present existing  use and easement for which there is no                                                            
reasonable alternative.                                                                                                         
                                                                                                                                
SENATOR HALFORD  asked, "If  the state owned  the mountain  tops and                                                            
the  only access  that  can ever  be built  into a  road is  a 17  B                                                            
easement, but  you could on a map at least look through  a series of                                                            
state  owned parcels  and come  down across  the  mountain tops  and                                                            
glaciers  to get there,  then they  will go ahead  and terminate  it                                                            
because  there is some  theoretical  map connection.   Is that  what                                                            
you're talking about?  I'm trying to get the distinction."                                                                      
                                                                                                                                
MS. GRACE responded  that they really need to wait  and see what the                                                            
BLM has in mind.   They are drawing a distinction  between easements                                                            
to isolated  parcels and easements  for which there's no  reasonable                                                            
alternative.                                                                                                                    
                                                                                                                                
SENATOR HALFORD  asked, "If that isn't  one of the criteria  for the                                                            
creation of 17  Bs in the first place.  He said, "I  thought that in                                                            
order to get the  17 B there had to be a determination  on it - that                                                            
that was  necessary to  have access  to the public  lands or  public                                                            
waters involved.   Some people  think there  were 17 Bs that  should                                                            
have  been, but  weren't.   So, you   had  a one-shot  deal and  now                                                            
there's a second shot to reduce it further."                                                                                    
                                                                                                                                
MS.  GRACE  answered  that  it seems  to  her  that  distinction  is                                                            
vulnerable to a challenge of being arbitrary and capricious.                                                                    
                                                                                                                                
SENATOR HALFORD asked,  "If they withdraw the easement and take that                                                            
action  and the documents  are there  - and we  now have  basically,                                                            
because  we know through  the Gulkana  case that  we own  subsurface                                                            
estate  that  they  have transferred  in  patent  to  third  parties                                                            
because they  did it before  the Gulkana  case went forward.  What's                                                            
our avenue to go back?"                                                                                                         
                                                                                                                                
MS.  GRACE answered,  "Congress.   BLM  couldn't  do anything  about                                                            
that. BLM  is powerless,  because once they  have conveyed  it, they                                                            
have conveyed it."                                                                                                              
                                                                                                                                
Number 1661                                                                                                                     
                                                                                                                                
SENATOR HALFORD said that  means the state should be involved in the                                                            
legal action to stop that from happening.                                                                                       
                                                                                                                                
MS. GRACE  answered  that she didn't  think it  was happening  after                                                            
Gulkana.                                                                                                                        
                                                                                                                                
SENATOR HALFORD  said he was talking  about 17 Bs.  He used  Gulkana                                                            
as an  example of  the state's  subsurface rights,  but once  you've                                                            
transferred the full bundle of rights, BLM can't take it back.                                                                  
                                                                                                                                
MS. GRACE asked him if  he thought the Department of Law hadn't been                                                            
sufficiently involved.                                                                                                          
                                                                                                                                
SENATOR HALFORD  said that wasn't  it.  He wanted to make  sure when                                                            
it gets  to the point that  they are actually  considering  giving a                                                            
specific easement  away, that as an interest to the  state of Alaska                                                            
that  we be  involved not  after the  fact,  but try  to enjoin  the                                                            
action before it happened.                                                                                                      
                                                                                                                                
MS. GRACE answered that  she thought the Department of Fish and Game                                                            
and  the Department  of Natural  Resources  would  watch these  very                                                            
closely.                                                                                                                        
                                                                                                                                
CHAIRMAN  TORGERSON  asked  if  they  were  involved  in  any  17  B                                                            
litigation right now.                                                                                                           
                                                                                                                                
MS. GRACE answered they weren't.                                                                                                
                                                                                                                                
CHAIRMAN TORGERSON said  a case had been filed in Seldovia over that                                                            
17 B easement and asked why we aren't part of that.                                                                             
                                                                                                                                
MS. GRACE said  she wasn't aware of  it and didn't know the  answer.                                                            
                                                                                                                                
CHAIRMAN  TORGERSON  said  it had  to  do with  motorless  versus  a                                                            
walking trail fight between  residents, BLM and Native corporations.                                                            
                                                                                                                                
MS.  GRACE  said  she thought  she  knew  this  situation,  but  she                                                            
couldn't tell him what their involvement is right now.                                                                          
                                                                                                                                
CHAIRMAN TORGERSON  said that was  a far-reaching one, if  the state                                                            
doesn't get involved  in it pretty quick.  There's  no solution that                                                            
he's seen besides sticking with the original agreement.                                                                         
                                                                                                                                
SENATOR TAYLOR  said they could use  eminent domain to acquire  back                                                            
rather than have to pay for rights-of-way across private land.                                                                  
                                                                                                                                
MS.  GRACE said  she thought  they could  do  that.  If  it's for  a                                                            
public  purpose,  the  state  has that  authority  to  take  private                                                            
property as long as it's willing to pay for it.                                                                                 
                                                                                                                                
SENATOR TAYLOR  asked what would happen  if it was transferred  to a                                                            
Native  corporation  that  may  have  certain  restrictions  on  the                                                            
alienation of that property.                                                                                                    
                                                                                                                                
MS. GRACE  said that was  a good question,  but she didn't  have the                                                            
answer.                                                                                                                         
                                                                                                                                
CHAIRMAN  TORGERSON asked  if there were  any further questions  for                                                            
Ms. Grace.  There were none.                                                                                                    
                                                                                                                                
CHAIRMAN TORGERSON adjourned the meeting at 4:47 p.m.                                                                           

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