Legislature(2007 - 2008)BUTROVICH 205

04/04/2007 04:30 PM Senate RESOURCES


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04:42:17 PM Start
04:43:23 PM Confirmation Hearing - Adf&g, Commissioner-designate Denby Lloyd
05:13:58 PM SB103
05:40:43 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Time Change --
+ Governor's Appointment - Confirmation TELECONFERENCED
Hearing:
Denby Lloyd - Dept of Fish & Game
-- Teleconference <Listen Only> --
*+ SB 103 LAND TRANSFERS ALASKA RR & EKLUTNA TELECONFERENCED
Moved SB 103 Out of Committee
-- Testimony <Time Limit May Be Set> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
              SENATE RESOURCES STANDING COMMITTEE                                                                             
                         April 4, 2007                                                                                          
                           4:42 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Charlie Huggins, Chair                                                                                                  
Senator Bert Stedman, Vice Chair                                                                                                
Senator Lyda Green                                                                                                              
Senator Gary Stevens                                                                                                            
Senator Bill Wielechowski                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Lesil McGuire                                                                                                           
Senator Thomas Wagoner                                                                                                          
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
Confirmation Hearing - Denby Lloyd, Commissioner Alaska                                                                         
Department of Fish and Game (ADF&G)                                                                                             
     CONFIRMATION ADVANCED                                                                                                      
                                                                                                                                
SENATE BILL NO. 103                                                                                                             
"An Act authorizing the transfer of land from the Alaska                                                                        
Railroad Corporation to Eklutna, Inc.; and providing for an                                                                     
effective date."                                                                                                                
     MOVED SB 103 OUT OF COMMITTEE                                                                                              
                                                                                                                                
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 103                                                                                                                  
SHORT TITLE: LAND TRANSFERS ALASKA RR & EKLUTNA                                                                                 
SPONSOR(s): RESOURCES                                                                                                           
                                                                                                                                
03/02/07       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/02/07       (S)       RES                                                                                                    
04/04/07       (S)       RES AT 4:30 PM BUTROVICH 205                                                                           
                                                                                                                                
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
DENBY LLOYD, Acting Commissioner                                                                                                
Alaska Department of Fish and Game (ADF&G)                                                                                      
Juneau AK                                                                                                                       
POSITION STATEMENT: Confirmation hearing for appointment.                                                                     
                                                                                                                                
PAT GAMBLE, President and CEO                                                                                                   
Alaska Railroad Corporation (ARRC)                                                                                              
Anchorage AK                                                                                                                    
POSITION STATEMENT: Supported SB 103.                                                                                         
                                                                                                                                
CURTIS MCQUEEN                                                                                                                  
Corporate Affairs                                                                                                               
Eklutna, Inc.                                                                                                                   
Anchorage AK                                                                                                                    
POSITION STATEMENT: Supported SB 103.                                                                                         
                                                                                                                                
JIM ARNESEN, Land Manager                                                                                                       
Eklutna AK                                                                                                                      
POSITION STATEMENT: Supported SB 103.                                                                                         
                                                                                                                                
DANIEL ALEX, Tribal Administrator                                                                                               
Native Village of Eklutna                                                                                                       
Alaska                                                                                                                          
POSITION STATEMENT: Supported SB 103.                                                                                         
                                                                                                                                
BONNE' WOLSTAD                                                                                                                  
Fairbanks AK                                                                                                                    
POSITION STATEMENT: Supported SB 103.                                                                                         
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
                                                                                                                                
CHAIR  CHARLIE  HUGGINS  called  the  Senate  Resources  Standing                                                             
Committee meeting to order at 4:42:17  PM. Present at the call to                                                             
order were  Senators Wielechowski, Stedman, Stevens  and Huggins.                                                               
Senator Green joined the committee at 4:43:23 PM.                                                                             
                                                                                                                                
^Confirmation  Hearing  -   ADF&G,  Commissioner-designate  Denby                                                               
Lloyd                                                                                                                           
                                                                                                                                
4:43:43 PM                                                                                                                    
DENBY LLOYD, Commissioner-designate for  the Alaska Department of                                                               
Fish and Game  (ADF&G) Denby Lloyd said his  expertise comes from                                                               
commercial fishing. He  looked forward to the  challenge of being                                                               
commissioner  overseeing  sport   fishing  and  game  management,                                                               
subsistence  and various  policy issues  that involve  management                                                               
and  utilization  of  fish  and wildlife  in  Alaska.  He  looked                                                               
forward to treating  constituents in a fair  and equitable manner                                                               
and  bringing   science  and  prudent  policy   analysis  to  the                                                               
performance of that job. He  sought to assure everyone that there                                                               
would be  no favoritism in  the commissioner's office -  a policy                                                               
he  has  displayed  in  the past  in  managing  among  commercial                                                               
fishing groups.                                                                                                                 
                                                                                                                                
4:44:51 PM                                                                                                                    
SENATOR WIELECHOWSKI  said they  learned recently about  what the                                                               
court has  declared to be  a bounty on  wolves and asked  if that                                                               
was his decision.                                                                                                               
                                                                                                                                
MR.  LLOYD  replied  yes;  it  was  his  decision  to  create  an                                                               
incentive for increased participation  in the wolf control effort                                                               
and at  the same  time to collect  usable scientific  samples. He                                                               
was  advised at  the time  that there  was distinction  between a                                                               
bounty  and  sample  collecting.  He said  this  type  of  sample                                                               
gathering has  been performed  in the recent  past and  he hadn't                                                               
anticipated legal difficulties.                                                                                                 
                                                                                                                                
SENATOR WIELECHOWSKI asked  if he had consulted  with the state's                                                               
attorneys before making this decision.                                                                                          
                                                                                                                                
MR. LLOYD  replied no, that the  attorney was out of  town at the                                                               
time, and that he had consulted within the department.                                                                          
                                                                                                                                
4:46:12 PM                                                                                                                    
SENATOR WIELECHOWSKI asked  if he intended to  pursue the killing                                                               
of wolves by helicopter.                                                                                                        
                                                                                                                                
MR. LLOYD replied that he hadn't decided that yet.                                                                              
                                                                                                                                
SENATOR WIELECHOWSKI asked him what  factors he would consider in                                                               
making that decision.                                                                                                           
                                                                                                                                
MR. LLOYD  replied that the  pragmatic factors would be  the snow                                                               
conditions,  the likelihood  of  success, the  number of  animals                                                               
left in  a particular unit between  where they are now  and their                                                               
objective,  logistic  considerations  and  policy  considerations                                                               
within the governor's office.                                                                                                   
                                                                                                                                
SENATOR WIELECHOWSKI  asked him to explain  policy considerations                                                               
within the governor's office.                                                                                                   
                                                                                                                                
MR. LLOYD replied that this  governor and past governors have had                                                               
to  weigh the  efficacy  of  these types  of  efforts versus  the                                                               
potential resistance  to using them by  other constituent groups.                                                               
Given that the  governor is the chief executive,  he would follow                                                               
her lead.                                                                                                                       
                                                                                                                                
SENATOR WIELECHOWSKI  asked if it  was appropriate to  make these                                                               
types  of  wildlife  decisions   based  on  politics  instead  of                                                               
science.                                                                                                                        
                                                                                                                                
MR. LLOYD replied  there are always public policy  aspects to the                                                               
decisions  the   department  makes.  Generally,   the  department                                                               
prepares   the   scientific   information  and   forwards   those                                                               
directions to the policy makers.  "Often times we're going to the                                                               
Board of  Game, to the Board  of Fisheries, and often  times also                                                               
to the Office of the Governor."                                                                                                 
                                                                                                                                
4:48:16 PM                                                                                                                    
SENATOR WIELECHOWSKI  asked what his  position was on  the recent                                                               
Board of  Game decision  to allow the  trapping of  wolverines in                                                               
Anchorage.                                                                                                                      
                                                                                                                                
MR.  LLOYD replied  that he  didn't have  a personal  position on                                                               
that issue and  wasn't real familiar with it. He  knew there were                                                               
competing  views  within the  department's  staff  on whether  it                                                               
should be  allowed. He  thought it  was part of  the role  of the                                                               
Board  of Game  to make  those choices  when there  was no  clear                                                               
technical guidance from the department.                                                                                         
                                                                                                                                
SENATOR  WIELECHOWSKI  asked when  he  makes  decisions based  on                                                               
predator control,  for instance,  what would  be his  approach in                                                               
terms of policy and science.                                                                                                    
                                                                                                                                
MR.  LLOYD  replied  that  his  approach is  to  provide  a  good                                                               
scientific basis for  any exercise the department  engages in. It                                                               
is  a  public  policy  choice  to either  have  a  population  of                                                               
ungulates that  is at low  levels with high  predator populations                                                               
or  to   shift  that  balance   in  order  to  achieve   a  goal.                                                               
Scientifically,  the   department  can  document   that  predator                                                               
control  in some  areas can  result  in an  increase of  ungulate                                                               
population that can be harvested  by human beings for consumption                                                               
or sport, but that comes back into the public policy arena.                                                                     
                                                                                                                                
4:49:59 PM                                                                                                                    
SENATOR WIELECHOWSKI  asked Mr.  Lloyd to  explain why  he wanted                                                               
the number of wolves in certain  areas decreased down to 20 or 30                                                               
percent of what they are now.                                                                                                   
                                                                                                                                
MR. LLOYD replied  that as he understands the science  and he has                                                               
been   advised  by   personnel  in   the  Division   of  Wildlife                                                               
Conservation that  wolves have large  litters and reproduce  at a                                                               
fast rate and in order to  be effective at wolf control, you have                                                               
to reduce  the population  by about  80 percent  - so  that would                                                               
leave 20 percent in those areas.                                                                                                
                                                                                                                                
4:50:58 PM                                                                                                                    
SENATOR STEVENS  asked him  for some background  on the  issue of                                                               
predator control and who advocates for it.                                                                                      
                                                                                                                                
MR. LLOYD  replied that  predator control in  this instance  is a                                                               
relatively new issue to him, but  he is engaged in a program that                                                               
focuses on  five areas in the  state with a possible  addition of                                                               
two or  three others. This involves  less than 10 percent  of the                                                               
land  mass in  Alaska and  many areas  like federally  controlled                                                               
wilderness  or national  parks would  not  allow such  exercises.                                                               
Making  public  policy  choices to  increase  moose  and  caribou                                                               
populations by  virtue of predator  control on portions  of state                                                               
lands is reasonable and these  choices have been made through the                                                               
Legislature with  intensive management law and  through the Board                                                               
of Game deliberations.                                                                                                          
                                                                                                                                
He couldn't  really characterize  a constituency  behind predator                                                               
control, but he  said there are many sport  and subsistence users                                                               
who are  looking for increased  moose and caribou  populations in                                                               
several areas of  the state and they want the  department and the                                                               
state to help  in that regard by reducing  predation by predators                                                               
so that  predations can  be substituted by  humans for  human use                                                               
and consumption.                                                                                                                
                                                                                                                                
4:52:59 PM                                                                                                                    
SENATOR  STEVENS said  he thought  the department  had tried  for                                                               
years to balance  the many demands on it and  that often politics                                                               
entered into it.  He stated that he had known  Mr. Lloyd for many                                                               
years and he has  a great deal of respect for  him. He asked what                                                               
his theory is of managing large groups of people.                                                                               
                                                                                                                                
MR.  LLOYD  replied that  he  was  director  of the  Division  of                                                               
Commercial  Fisheries  two  different   times  and  was  regional                                                               
supervisor in the  Kodiak Office; he had  scientific research and                                                               
management  background,  as   well.  His  management  perspective                                                               
changed  as  his  responsibilities  changed and  when  he  was  a                                                               
project leader, he looked out for  the safety and efficacy of the                                                               
assignment.  At  mid-management  level,   he  looked  to  buffer,                                                               
promote  and defend  the  staff in  their  ability to  accomplish                                                               
their tasks - making sure  they were provided with good personnel                                                               
services  and budgetary  services.  At a  more  senior level,  he                                                               
brought the  broader perspective  that public policy  demands. He                                                               
said:                                                                                                                           
                                                                                                                                
     We have,  I think, an enviable  constitution that leads                                                                    
     or  guides  our  resource  management  program  in  the                                                                    
     department   and  we   have  an   enviable  system   of                                                                    
     regulatory development through  the Boards of Fisheries                                                                    
     and  Game.   I  look   forward  to  working   with  the                                                                    
     Legislature, the Administration and  with the Boards to                                                                    
     figure   out  what   the   appropriate  public   policy                                                                    
     direction will be for the  department and then to carry                                                                    
     that out in a scientifically defensible manner.                                                                            
                                                                                                                                
4:55:58 PM                                                                                                                    
SENATOR STEDMAN  said even  though this is  a Board  of Fisheries                                                               
issue, he  has heard there doesn't  seem to be a  fair allocation                                                               
of red crab  because it is a depressed biomass  and 20 percent of                                                               
it went to the personal use fishery.                                                                                            
                                                                                                                                
MR.  LLOYD  responded  that the  department  provides  scientific                                                               
information to  the Board  of Fisheries so  it can  make informed                                                               
decisions,  but  he  couldn't  comment on  what  he  thought  the                                                               
decisions should be.  He said the department, in  responding to a                                                               
number of concerns from the fleet,  had done a thorough review of                                                               
its  red  crab  survey  methodology   and  had  included  outside                                                               
reviewers to help. They hadn't  accommodated all of the concerns,                                                               
but had made a fair amount of movement.                                                                                         
                                                                                                                                
4:58:49 PM                                                                                                                    
SENATOR WIELECHOWSKI asked  what his position was  on the federal                                                               
recommendation  to reduce  the sport  halibut  catch for  charter                                                               
boats down to one fish per day.                                                                                                 
                                                                                                                                
MR. LLOYD replied  that he wrote a letter to  Dr. Jim Balsager of                                                               
the National Marine Fisheries Service  who is also on the Halibut                                                               
Commission that made  that decision and asked  them to reconsider                                                               
because a  one-fish bag  limit was  unnecessarily onerous  to the                                                               
sport  fish  charter  industry  in  that  the  harvest  reduction                                                               
objectives they were looking for  could have been accommodated in                                                               
other ways. Since  that time, the federal Secretary  of State and                                                               
Secretary of  Commerce have  rescinded that  action and  they are                                                               
going through final  rule-making now to institute  a one-plus bag                                                               
limit for Southeast Alaska. That is  likely to look like one fish                                                               
of any  size plus one fish  less than 32 inches.  In Southcentral                                                               
Alaska, by  virtue of  a department action  to limit  skipper and                                                               
crew harvest,  the federal government  decided it didn't  need to                                                               
impose any reduction in the bag  limit from two fish per day. So,                                                               
he thinks, some  headway was made with the federal  system and he                                                               
hoped  to bring  the  issue  back to  the  North Pacific  Council                                                               
rather than to the Halibut Commission.                                                                                          
                                                                                                                                
5:00:56 PM                                                                                                                    
SENATOR WIELECHOWSKI asked  how active a role he  intends to take                                                               
with the Pebble Mine development.  Some people claim it will have                                                               
a tremendous impact on the wildlife and the fishery.                                                                            
                                                                                                                                
MR.  LLOYD replied  that  presuming  it will  be  a major  mining                                                               
effort impacts are likely to  happen unless there is good project                                                               
review and potential mitigation. He stated:                                                                                     
                                                                                                                                
     I'm following  the governor's lead  in this  respect in                                                                    
     that so far  as we can provide the  opportunity to have                                                                    
     that mine  development - great. But  the expectation is                                                                    
     that it will  be developed in such a way  that there is                                                                    
     no  net   impact  on  fisheries  out   there.  And  our                                                                    
     department  will be  directly involved  in that.  We've                                                                    
     already  modified the  MOU  between  the Department  of                                                                    
     Natural Resources  and Fish and  Game so that  Fish and                                                                    
     Game  is directly  involved  with  that program  review                                                                    
     with the Department of Natural Resources.                                                                                  
                                                                                                                                
SENATOR WIELECHOWSKI went back to  the predator control issue and                                                               
said that wolves are one of  the predators, but studies also show                                                               
significant predation from grizzly  bears and even golden eagles.                                                               
He asked  if he intended to  expand the program to  include those                                                               
other types of wildlife.                                                                                                        
                                                                                                                                
MR. LLOYD replied that it was  very possible the program would be                                                               
expanded  to not  only grizzly  bears, but  black bears,  in some                                                               
instances, because of predation on  moose and caribou. He said he                                                               
would  work with  the Board  of Game  to determine  which prudent                                                               
control measures ought to be applied to bears.                                                                                  
                                                                                                                                
5:02:52 PM                                                                                                                    
SENATOR  STEVENS   asked  what   his  goals   would  be   in  the                                                               
commissioner's job of  sitting on the Board of  the North Pacific                                                               
Management Council.                                                                                                             
                                                                                                                                
MR. LLOYD  replied that as  commissioner of  ADF&G he has  one of                                                               
the 11  voting seats  on the  Council and 6  of them  are Alaskan                                                               
appointees.  If  this  majority   is  utilized  in  a  reasonable                                                               
fashion, the interests of Alaska  ought to be well represented on                                                               
the  Council and  he would  look for  the opportunity  to benefit                                                               
coastal  communities  rather  than   any  specific  harvester  or                                                               
processing group.                                                                                                               
                                                                                                                                
5:04:21 PM                                                                                                                    
CHAIR HUGGINS noted  the list of both the  opposition and support                                                               
for  Mr. Lloyd.  He said  he would  support him  if the  governor                                                               
does, but he wanted to take the  liberty as a chairman to talk to                                                               
him and characterize the people who have concerns.                                                                              
                                                                                                                                
He  said one  of  Mr.  Lloyd's first  decisions  was  to hire  an                                                               
immediate  subordinate  and  that  he hired  that  person  so  he                                                               
wouldn't be "campaigned."  Chair Huggins reminded him  that he is                                                               
managing the  state's fish and  game for abundance  and sustained                                                               
yield and they belong to the people of Alaska.                                                                                  
                                                                                                                                
CHAIR  HUGGINS  also  advised that  while  he  supports  predator                                                               
control,  he  thought the  state  would  lose  on the  issues  of                                                               
bounties  and helicopters.  He  asked Mr.  Lloyd  to broaden  his                                                               
perspective  and be  more collaborative  in his  decision-making,                                                               
because "that  predator control program  belongs to the  State of                                                               
Alaska and  we suffer the consequences  if we don't have  that in                                                               
place."                                                                                                                         
                                                                                                                                
5:07:36 PM                                                                                                                    
CHAIR HUGGINS  went on to  the issue  of escapement in  the Upper                                                               
Cook Inlet where he lives and  said on behalf of his constituents                                                               
that the fish run  a gauntlet there and he wants  some of them to                                                               
reach Upper  Cook Inlet.  Also, his hunter  friends want  to hunt                                                               
moose in  Unit 16B, which is  now closed. It's one  of the larger                                                               
game units in the state that  is close to a metropolitan area and                                                               
the  commissioner might  need to  consider  protecting the  moose                                                               
there.                                                                                                                          
                                                                                                                                
He encouraged him to foster  trust and confidence and he advised:                                                               
The way you  get that is you  go out and you  engage those groups                                                               
and foster their trust and confidence in your leadership.                                                                       
                                                                                                                                
5:09:51 PM                                                                                                                    
SENATOR STEVENS moved  to forward the name of Denby  Lloyd to the                                                               
full body for consideration. There  were no objections and it was                                                               
so ordered.                                                                                                                     
                                                                                                                                
5:10:16 PM at ease 5:13:15 PM                                                                                               
                                                                                                                                
           SB 103-LAND TRANSFERS ALASKA RR & EKLUTNA                                                                        
                                                                                                                                
CHAIR HUGGINS announced SB 103 to be up for consideration.                                                                      
                                                                                                                                
5:13:58 PM                                                                                                                    
PAT  GAMBLE,  President  and  CEO,  Alaska  Railroad  Corporation                                                               
(ARRC),  supported SB  103  saying that  in  accordance with  the                                                               
Railroad  Transfer  Act,  the  ARRC  seeks  permission  from  the                                                               
legislature  to  transfer about  48  acres  of ARRC  property  to                                                               
Eklutna Inc.  with the blessing  of Eklutna Village.  The purpose                                                               
of  the transfer  is to  end a  long-standing gridlock  over this                                                               
particular piece  of property  that started out  as a  quarry. It                                                               
was  quarried for  a  number of  years until  such  time as  they                                                               
became aware that it was also  a significant cultural icon in the                                                               
history  of the  Eklutnas.  They became  gridlocked  in terms  of                                                               
using  any   quarry  product  and   figured  any   future  mining                                                               
possibilities   were  very   remote.   After  much   unsuccessful                                                               
litigation, they decided  the right thing to do  was recognize it                                                               
as a  cultural issue and resolve  it by signing the  land over to                                                               
the Eklutnas. In addition, Eklutna,  Inc. and CIRI, to the extent                                                               
that it  has rights under the  surface of lands all  through this                                                               
particular  area,  have a  lot  of  interests that  the  Railroad                                                               
wanted to further over time.                                                                                                    
                                                                                                                                
5:17:43 PM                                                                                                                    
SENATOR WIELECHOWSKI asked what the status  of the land is to the                                                               
Railroad right now.                                                                                                             
                                                                                                                                
MR. GAMBLE replied that it is one of fee simple ownership.                                                                      
                                                                                                                                
SENATOR WIELECHOWSKI  asked what the  ARRC would get  in exchange                                                               
for the transfer.                                                                                                               
                                                                                                                                
MR. GAMBLE replied that the transfer  is not value for value, but                                                               
rather:                                                                                                                         
                                                                                                                                
     We are  transferring the  property just  simply because                                                                    
     we  feel  that it's  rightfully  theirs  and we're  not                                                                    
     going to  use it.  We're not going  to mine  the quarry                                                                    
     any  more as  we had  over a  number of  years. In  the                                                                    
     sense that  there's an exchange, they  have agreed that                                                                    
     any rock  that is currently  laying on the  ground that                                                                    
     was  shot in  the past  - it's  been there  for several                                                                    
     years -  any rock of  whatever size that would  be part                                                                    
     of a cleanup  that we would go in and  do and bring the                                                                    
     materials  out in  order to  leave the  land clean,  we                                                                    
     could have.  In addition,  if there  was any  desire of                                                                    
     Eklutna Village or Eklutna Inc  to try to landscape the                                                                    
     face of what has already  been shot, quarried, over the                                                                    
     years and  to try to clean  that up and make  it look a                                                                    
     little  more presentable,  we're certainly  amenable to                                                                    
     going  in  and  with certain  restrictions  doing  that                                                                    
      cleanup and again picking up whatever comes off the                                                                       
        face as we clean that up and take that out, too,                                                                        
     before we roll the track up.                                                                                               
                                                                                                                                
SENATOR WIELECHOWSKI  asked how  he can say  the land  belongs to                                                               
the Railroad in  fee simple, but yet the  land rightfully belongs                                                               
to Eklutna.                                                                                                                     
                                                                                                                                
MR. GAMBLE  explained that's part  of the  cultural determination                                                               
he and  his staff made when  looking into the history  of how the                                                               
land came into  the Railroad's hands. "Things were done  in a way                                                               
that we probably  would not accept today."   The objection raised                                                               
by the Eklutna Village in the  late 90s highlighted this issue to                                                               
the point  where their interests  were recognized finally  by the                                                               
Railroad and the federal government.                                                                                            
                                                                                                                                
5:20:07 PM                                                                                                                    
He related  that the history goes  back to World War  II when the                                                               
Eklutna Village offered  the quarry to the Army to  use. The Army                                                               
ran the Railroad  in those days. After the war  ended, the Native                                                               
School  that owned  the  property closed  the  quarry and  moved,                                                               
surplusing the  land. The Railroad  asked for the quarry  and the                                                               
Bureau  of Indian  Affairs (BIA),  not  the Village,  gave it  to                                                               
them. The Village  felt like it had been sold  out at that point.                                                               
This is the story he heard over and over again.                                                                                 
                                                                                                                                
He explained  that in the  North Anchorage Land  Agreement (NALA)                                                               
the Railroad was  given the right to mine the  quarry down to the                                                               
flat ground.  However, the  very name  "Eklutna" talks  about the                                                               
geographical  features  [the two  knobs  on  either side  of  the                                                               
river] that were being mined away.                                                                                              
                                                                                                                                
SENATOR WIELECHOWSKI asked if this property had an appraisal.                                                                   
                                                                                                                                
MR. GAMBLE replied no.                                                                                                          
                                                                                                                                
SENATOR WIELECHOWSKI asked if he knew what it was worth.                                                                        
                                                                                                                                
MR. GAMBLE answered no.                                                                                                         
                                                                                                                                
5:21:59 PM                                                                                                                    
CURTIS  MCQUEEN, Corporate  Affairs, Eklutna  Inc., supported  SB
130 and added that this is  a 30-year plus wound for Eklutna Inc.                                                               
and  the Native  Village of  Eklutna.  They both  serve the  same                                                               
clients and  work very close  together. Eklutna Inc. is  the for-                                                               
profit corporation  and the Village  is the  federally recognized                                                               
tribe. "Elutnoi"  means the river  that runs between and  the two                                                               
knobs on  either side  of the  river are what  Eklutna is  to the                                                               
people. To  have them continue  to be  mined down to  flat ground                                                               
goes to the core of their  identity. With Mr. Gamble's arrival to                                                               
the Railroad,  it was recognized  as a long-term issue  and other                                                               
mutually favorable  long-term issues  were found that  they could                                                               
work together on in terms of land trades.                                                                                       
                                                                                                                                
5:23:58 PM                                                                                                                    
JIM ARNESEN,  Land Manager,  Eklutna, Inc.,  said one  thing that                                                               
has  been left  out so  far is  the tie-in  to the  Alaska Native                                                               
Claims Settlement  Act (ANSCA) and  the Alaska  National Interest                                                               
Lands  Conservation  Act  (ANILCA). The  Railroad  had  temporary                                                               
rights  to  this property  which  would  self-extinguish when  it                                                               
could no longer  use the property. ANILCA didn't  deal with every                                                               
land  issue  and this  property  was  envisioned  to go  back  to                                                               
Eklutna over 30 years ago in ANSCA.                                                                                             
                                                                                                                                
5:25:28 PM                                                                                                                    
DANIEL  ALEX, Tribal  Administrator, Native  Village of  Eklutna,                                                               
supported  Mr. McQueen's  comments  that only  temporary use  was                                                               
granted.  Section 3  of the  ANSCA  said that  Eklutna, Inc.  was                                                               
entitled  to  the property.    He  mentioned that  Eklutna,  Inc.                                                               
signed an  MOU with the  ARRC saying  it could use  the materials                                                               
that  were   already  quarried  and   that  the   Railroad  would                                                               
restructure the landscape once it was done.                                                                                     
                                                                                                                                
5:27:25 PM                                                                                                                    
CHAIR HUGGINS asked if anyone objects to this transaction.                                                                      
                                                                                                                                
MR. ALEX replied  that the Council speaks for  the Native Village                                                               
of Eklutna and it supports the MOU.                                                                                             
                                                                                                                                
CHAIR HUGGINS  asked who signed  the MOU dated January  22, 2007.                                                               
He saw the signatures of Mr. Gamble and Mr. Alex.                                                                               
                                                                                                                                
MR. ALEX responded  that the MOU dates back before  he became the                                                               
tribal  administrator.  He  thought Jerry  [indisc.]  was  deputy                                                               
executive officer. The MOU went back a couple of years.                                                                         
                                                                                                                                
CHAIR HUGGINS asked if he was talking about the 1982 version.                                                                   
                                                                                                                                
MR. ALEX replied [indisc.].                                                                                                     
                                                                                                                                
5:29:39 PM                                                                                                                    
MR.  MCQUEEN clarified  that for  the last  2.5 years  the Native                                                               
Village of  Eklutna and the  ARRC have  had a MOU  that contained                                                               
certain  dates. As  those  dates  have come  up,  they have  been                                                               
reaffirmed by signing  amendments to continue the  MOU. This goes                                                               
back quite a long way.                                                                                                          
                                                                                                                                
5:30:27 PM                                                                                                                    
CHAIR  HUGGINS asked  if there  were  other aspects  to the  land                                                               
transfer agreement the legislature should be aware of.                                                                          
                                                                                                                                
MR.  MCQUEEN replied  that there  are some  conditions have  been                                                               
worked out with the ARRC  regarding blasting overhangs that might                                                               
be dangerous - including a schedule  and times of days and nights                                                               
they need to  be respectful of. However, they all  agree that the                                                               
sooner they  can get in and  get that stock pile  off the ground,                                                               
the better.  They have requested  that this summer season  be the                                                               
one they do it in.                                                                                                              
                                                                                                                                
CHAIR HUGGINS asked  Mr. Gamble if the Railroad  could meet those                                                               
cleanup obligations. He indicated yes.                                                                                          
                                                                                                                                
5:31:53 PM                                                                                                                    
BONNE' WOLSTAD, Fairbanks, said she  was glad the ARRC recognized                                                               
the ownership issues and was working to solve them.                                                                             
                                                                                                                                
SENATOR  STEDMAN commended  the  Railroad on  taking a  proactive                                                               
direction in  settling this issue  and setting a good  example in                                                               
how to resolve  other similar situations. He  is comfortable with                                                               
the settlement, but he would have liked to see an appraisal.                                                                    
                                                                                                                                
5:34:06 PM                                                                                                                    
He asked if  there is a Railroad right-of-way that  goes into the                                                               
quarry site that isn't referenced on the aerial survey.                                                                         
                                                                                                                                
MR. GAMBLE replied  that the right-of-way is the  spur line going                                                               
into the  quarry and that would  be part of the  cleanup. As they                                                               
bring the material out it is  their intention to pull the rail up                                                               
and return the right-of-way strip to  its natural look as much as                                                               
possible. So, the main line which  is a couple hundred yards down                                                               
from that spur will then bypass the entire piece of property.                                                                   
                                                                                                                                
5:35:05 PM                                                                                                                    
SENATOR WIELECHOWSKI asked since this  is a cultural and historic                                                               
site, is it fair to say the  Eklutna Village has no plans to mine                                                               
or develop the property.                                                                                                        
                                                                                                                                
MR. MCQUEEN  replied that  is correct; they  are working  to keep                                                               
that area in its pristine  natural state. Eklutna, Inc. has other                                                               
lands  outside of  this area  that may  potentially be  mine-able                                                               
rock, but do  not have cultural significance and do  not have the                                                               
ties to the Eklutna River that these two knobs have.                                                                            
                                                                                                                                
SENATOR  WIELECHOWSKI asked  if  any municipalities  in the  area                                                               
have weighed in either in support of or opposed to this plan.                                                                   
                                                                                                                                
MR. MCQUEEN  replied that they  have had tremendous  support from                                                               
Mayor Begich and the NALA has a resolution in favor of it.                                                                      
                                                                                                                                
5:37:12 PM                                                                                                                    
SENATOR WIELECHOWSKI asked if the  planning and zoning department                                                               
had granted a conditional use permit.                                                                                           
                                                                                                                                
MR. MCQUEEN  replied that a  conditional permit has  been granted                                                               
recently to remove the remaining rock, but for nothing else.                                                                    
                                                                                                                                
5:37:49 PM                                                                                                                    
SENATOR STEVENS asked  who gave the quarry to  the Railroad after                                                               
the Army was done with it.                                                                                                      
                                                                                                                                
MR. GAMBLE  replied the BIA closed  the school and moved  it; the                                                               
land that  had been retained for  the school grounds went  up for                                                               
grabs. The  ARRC said it  wanted the  quarry and in  the original                                                               
document review, a letter was  found between the Railroad and the                                                               
BIA in  which the  BIA asked  a couple  of questions,  those were                                                               
answered,  and  very  simply  the land  was  transferred  to  the                                                               
Railroad.                                                                                                                       
                                                                                                                                
SENATOR STEVENS said he thought this was the right thing to do.                                                                 
                                                                                                                                
5:39:33 PM                                                                                                                    
MR. GAMBLE  added that  the federal  government also  removed its                                                               
objection  when  it saw  the  progress  that  had been  made  and                                                               
reviewed the signed documents going forward to a resolution.                                                                    
                                                                                                                                
CHAIR HUGGINS asked Mr. Alex if he supported the land transfer.                                                                 
                                                                                                                                
MR. ALEX replied yes.                                                                                                           
                                                                                                                                
SENATOR  STEDMAN  moved  to  pass  SB  103  from  committee  with                                                               
individual recommendations.  There were no objections  and it was                                                               
so ordered.  There being no  further business to come  before the                                                               
committee, Chair Huggins adjourned the meeting at 5:40:43 PM.                                                                 
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects