Legislature(2011 - 2012)BUTROVICH 205

03/23/2011 03:30 PM Senate RESOURCES


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03:35:24 PM Start
03:36:12 PM Confirmation Hearings
04:58:18 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Confirmation Hearings: TELECONFERENCED
Cora Campbell, Commissioner, DF&G
Dan Sullivan, Commissioner, DNR
Bills Previously Heard/Scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
              SENATE RESOURCES STANDING COMMITTEE                                                                             
                         March 23, 2011                                                                                         
                           3:35 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Joe Paskvan, Co-Chair                                                                                                   
Senator Thomas Wagoner, Co-Chair                                                                                                
Senator Bill Wielechowski, Vice Chair                                                                                           
Senator Hollis French                                                                                                           
Senator Gary Stevens                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Bert Stedman                                                                                                            
Senator Lesil McGuire                                                                                                           
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CONFIRMATION HEARINGS:                                                                                                          
CORA CAMPBELL, Commissioner-designee                                                                                            
Alaska Department of Fish and Game (ADF&G)                                                                                      
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
DAN SULLIVAN, Commissioner-designee                                                                                             
Department of Natural Resources (DNR)                                                                                           
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to consider.                                                                                                 
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
CORA CAMPBELL, Commissioner-designee                                                                                            
Alaska Department of Fish and Game (ADF&G), said she is a life-                                                                 
long Alaskan and was born and raised in Petersburg.                                                                             
POSITION STATEMENT: Commented on her qualifications for ADF&G                                                                 
commissioner.                                                                                                                   
                                                                                                                                
PAUL SHADURA, representing himself                                                                                              
Soldotna, AK                                                                                                                    
POSITION STATEMENT: Supported Ms. Campbell's appointment.                                                                     
                                                                                                                                
DAVE GODJA                                                                                                                      
Kenai River Professional Guide Association                                                                                      
Kenai, AK                                                                                                                       
POSITION STATEMENT: Supported Ms. Campbell's appointment.                                                                     
                                                                                                                                
RICKY GEASE, Executive Director                                                                                                 
Kenai River Sportfishing Association                                                                                            
Kenai, AK                                                                                                                       
POSITION STATEMENT: Fully supported Ms. Campbell's and Mr.                                                                    
Sullivan's appointments as commissioners.                                                                                       
                                                                                                                                
KEN LARSON, representing himself                                                                                                
North Pole and Valdez, AK                                                                                                       
POSITION STATEMENT: Supported Ms. Campbell's appointment.                                                                     
                                                                                                                                
MELVIN GROVE, President                                                                                                         
Prince William Sound Charter Boat Association                                                                                   
Valdez, AK                                                                                                                      
POSITION STATEMENT: Supported Ms. Campbell's and Mr. Sullivan's                                                               
appointments as commissioners.                                                                                                  
                                                                                                                                
VIC VANBALLENBERG, representing himself                                                                                         
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Opposed Ms. Campbell's appointment.                                                                       
                                                                                                                                
RUBEN HANKE, representing himself                                                                                               
Soldotna, AK                                                                                                                    
POSITION STATEMENT: Supported Ms. Campbell's appointment.                                                                     
                                                                                                                                
CARL JOHNSTONE, Vice-Chair                                                                                                      
Board of Fisheries                                                                                                              
State of Alaska                                                                                                                 
POSITION STATEMENT: Fully supported Ms. Campbell's appointment.                                                               
                                                                                                                                
JOHN JENSEN, representing himself                                                                                               
Petersburg, AK                                                                                                                  
POSITION STATEMENT: Fully supported Ms. Campbell's appointment.                                                               
                                                                                                                                
MIKE SMITH, Director, Subsistence Resources, Tanana Chief's                                                                     
Conference, Fairbanks, supported Ms. Campbell's nomination for                                                                  
commissioner of ADF&G.                                                                                                          
POSITION STATEMENT:                                                                                                           
                                                                                                                                
SARAH JACKINSKY, representing herself                                                                                           
Homer, AK                                                                                                                       
POSITION STATEMENT: Opposed Ms. Campbell's appointment.                                                                       
                                                                                                                                
JERRY MCCUNE                                                                                                                    
United Fishermen of Alaska                                                                                                      
Juneau, AK                                                                                                                      
POSITION STATEMENT: Supported Ms. Campbell's confirmation.                                                                    
                                                                                                                                
JIM PRESTON, representing himself                                                                                               
No address provided                                                                                                             
POSITION STATEMENT: Supported Ms. Campbell's nomination.                                                                      
                                                                                                                                
DAN SULLIVAN, Commissioner-designee                                                                                             
Department of Natural Resources (DNR)                                                                                           
Juneau, AK                                                                                                                      
POSITION STATEMENT:  Presented his background  and qualifications                                                             
for his appointment as commissioner of DNR.                                                                                     
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:35:24 PM                                                                                                                    
CO-CHAIR  TOM  WAGONER  called   the  Senate  Resources  Standing                                                             
Committee meeting  to order at 3:35  p.m. Present at the  call to                                                               
order were  Senators French,  Stevens, Wielechowski,  Wagoner and                                                               
Paskvan. Senator McGuire was excused.                                                                                           
                                                                                                                                
^Confirmation Hearings                                                                                                          
                      Confirmation Hearing                                                                                  
                                                                                                                              
3:36:12 PM                                                                                                                    
CO-CHAIR  WAGONER invited  Cora  Campbell,  Alaska Department  of                                                               
Fish and Game (ADF&G) commissioner designee forward.                                                                            
                                                                                                                                
CORA CAMPBELL,  Commissioner-designee, Alaska Department  of Fish                                                               
and Game  (ADF&G), said she is  a life-long Alaskan and  was born                                                               
and  raised  in Petersburg.  She  participated  in a  variety  of                                                               
Southeast Alaska  commercial fisheries  - herring,  salmon seine,                                                               
gillnet, troll, and  crab - and put herself  through college that                                                               
way. After college  she worked for a  local fisheries association                                                               
primarily representing  it in the various  regulatory forums that                                                               
control the  fishing industry  - the  Alaska Board  of Fisheries,                                                               
the   North  Pacific   Fisheries  Management   Council  and   the                                                               
International Pacific Halibut Commission;  she also tracked state                                                               
and federal legislation that could affect the group.                                                                            
                                                                                                                                
After that she  transitioned into working for  a state-wide group                                                               
that  had a  slightly different  focus; she  worked in  a program                                                               
that had an  education outreach focus at the time  that state and                                                               
federal subsistence  regulations were  starting to  diverge under                                                               
dual  management.  The program  educated  Alaskans  who could  be                                                               
affected  by   the  new  federal  management   system  about  the                                                               
activities of that regulatory body  and how to become involved in                                                               
that  process. About  four  years ago  she went  to  work in  the                                                               
Governor's Office.  At first she  was a fisheries  policy advisor                                                               
with duties  primarily related to  fisheries because most  of her                                                               
background was there.  But throughout her time  in the Governor's                                                               
Office, her  portfolio expanded to  include other issues  such as                                                               
wildlife   issues,   issues   related  to   the   Department   of                                                               
Environmental Conservation,  Arctic policy and the  Department of                                                               
Natural  Resources. So,  by the  time she  left she  had a  broad                                                               
suite of responsibilities.                                                                                                      
                                                                                                                                
COMMISSIONER  CAMPBELL  said  she  was appointed  as  the  acting                                                               
commissioner of  the ADF&G on  December 1  and that is  where she                                                               
has been ever since.                                                                                                            
                                                                                                                                
3:39:00 PM                                                                                                                    
CO-CHAIR WAGONER opened up public comment.                                                                                      
                                                                                                                                
3:39:45 PM                                                                                                                    
PAUL  SHADURA,  representing  himself,  Soldotna, said  he  is  a                                                               
member  of  the  Kenai/Soldotna  Advisory  Committee  and  is  an                                                               
alternate  on  the  Cook Inlet  Regional  Advisory  Committee,  a                                                               
stakeholder in the  Cook Inlet Beluga Recovery Team  and a member                                                               
of several  commercial fishing advocacy  groups. It is  not often                                                               
that  they  get the  opportunity  to  promote a  youthful  Alaska                                                               
person to public  service. Ms. Campbell has the  proven skills as                                                               
specified in  AS 16.05.10 that  says the commissioner shall  be a                                                               
qualified executive  with knowledge  of the requirements  for the                                                               
protection, management, conservation and  restoration of the fish                                                               
and game resources of the  state. In his personal experience with                                                               
her, she  has consistently  shown a  keen sense  of understanding                                                               
for  her  fellow Alaskans.  She  listens  and is  respectful.  He                                                               
thought she  would revitalize the  department and  would continue                                                               
to  attract new  expertise into  a department  that is  currently                                                               
suffering from an  exodus of long-time experienced  fish and game                                                               
leadership.                                                                                                                     
                                                                                                                                
3:41:22 PM                                                                                                                    
DAVE GODJA,  Kenai River  Professional Guide  Association, Kenai,                                                               
supported  Ms.   Campbell's  appointment.  He   attended  several                                                               
meetings where she was present  and felt confident that she would                                                               
do a good job for Alaska's species.                                                                                             
                                                                                                                                
RICKY  GEASE,   Executive  Director,  Kenai   River  Sportfishing                                                               
Association, Kenai,  fully supported Ms.  Campbell's appointment.                                                               
He  has interacted  with her  on different  levels; first  as the                                                               
fishery advisors in  the Governor's Office and  second during her                                                               
tenure so  far as the  commissioner designee for ADF&G.  He found                                                               
her  to  be sharp,  articulate  and  respectful; she  listens  to                                                               
people  and  has  a balanced  approach  to  fisheries  management                                                               
issues and a  firm grasp on what the duties  are. She understands                                                               
completely  about  resource  conservation   and  can  digest  and                                                               
integrate scientific information and  research and has surrounded                                                               
herself with capable people.                                                                                                    
                                                                                                                                
3:43:17 PM                                                                                                                    
KEN LARSON,  representing himself,  North Pole resident  for four                                                               
months a  year and  Valdez/Prince William Sound  for the  rest of                                                               
the year,  said he fishes  in Prince  William Sound and  has been                                                               
running a halibut  and salmon charter service since  1993. He had                                                               
no  objection to  Ms. Campbell's  appointment. He  wanted to  ask                                                               
questions that she  could answer now or later. One  was about the                                                               
increasing restrictions  on the halibut charter  industry and how                                                               
it affects  the tourism economy  in his  area. First he  said the                                                               
fishery  has  to  be  allowed  to rebuild.  While  halibut  is  a                                                               
federally  regulated fish,  Ms. Campbell  will be  one of  the 11                                                               
voting  members  on  the heavily  commercial  fisheries  weighted                                                               
North Pacific Management Council.                                                                                               
                                                                                                                                
He advised that  she has to consider conservation  at all levels.                                                               
ADF&G and  International Pacific Halibut Commission  (IPHC) catch                                                               
data  and NOAA/NMPFS  economic data  illustrates  what is  really                                                               
happening in  the halibut fishery; it  illustrates the relatively                                                               
minor impacts that sport caught  halibut has on the overall catch                                                               
when  you consider  the commercial  fishery catch  and their  by-                                                               
catch wastage. The  fact remains that "com  fish" is historically                                                               
responsible for  85-90 percent  of the  annual halibut  catch and                                                               
hence is responsible for the  majority of the ongoing overfishing                                                               
that  is  contributing  to   the  steadily  declining  commercial                                                               
fishery  catch limits;  2011  will  be the  first  year that  com                                                               
fishes'  catch  limit has  actually  been  set below  their  1995                                                               
startup IFQ of 48 million pounds.                                                                                               
                                                                                                                                
He  stated  that published  CFEC  data  indicates that  com  fish                                                               
halibut  ex-vessel revenue  has increased  over 350  percent from                                                               
$68 million in  1998 to $241 million in 2010.  That is with catch                                                               
steadily declining from their 75  million pound peak in 2004. Com                                                               
fish annual halibut by-catch and  wastage has stayed consistently                                                               
between  13-14 million  pounds a  year since  at least  1996 (per                                                               
IPHC records). It's not coming down with declining catch limits.                                                                
                                                                                                                                
Sport fishes'  catch peaked  at about 12  million pounds  in 2006                                                               
and was  down a  little over  9 million pounds  in 2010.  It will                                                               
continue to decline  with the LEP and catch herring  plan as it's                                                               
now implemented. A  lot of science says that the  average size of                                                               
the halibut  is in decline,  so catches will continue  to decline                                                               
without  more drastic  restrictions on  the largest  user of  the                                                               
resource. What will "Cora" do to help this situation?                                                                           
                                                                                                                                
With regard  to ADF&G sportfish  license sales, Mr.  Larson said,                                                               
2010 non-resident  licenses dropped by  almost 18 percent  with a                                                               
related  14.5 percent  drop  in net  sales  revenue. The  decline                                                               
started in 2005 and when  halibut restrictions were imposed. What                                                               
are "Cora's"  plans with regard  to the millions of  dollars lost                                                               
to ADF&G? How are they to be replaced?                                                                                          
                                                                                                                                
3:48:12 PM                                                                                                                    
MELVIN  GROVE,  President,  Prince  William  Sound  Charter  Boat                                                               
Association, said  he has  membership on a  number of  other fish                                                               
related boards.  He supported Ms. Campbell's  nomination with the                                                               
caveat  that  she  doesn't  use  it just  as  a  commercial  fish                                                               
position. She  understands the sport fishermen's  position in the                                                               
state  and  that  her  role  as  a  vote  on  the  North  Pacific                                                               
Management  Council is  extremely important.  Her decisions  will                                                               
affect not  only the  resource, but the  families that  depend on                                                               
them.                                                                                                                           
                                                                                                                                
3:51:20 PM                                                                                                                    
VIC  VANBALLENBERG,  representing  himself,  Anchorage,  said  he                                                               
moved to  Alaska in 1974 and  worked as a wildlife  biologist for                                                               
the ADF&G  and served on  the Board of  GAme. He has  worked with                                                               
all  fish and  game commissioners  since 1974,  all mid  or late-                                                               
career  professionals;  many  came   up  through  the  department                                                               
starting as  biologists and gaining administrative  experience as                                                               
region supervisors,  division directors or  deputy commissioners.                                                               
He said it  would be unprecedented to confirm  a commissioner who                                                               
lacks this  kind of experience and  background. It is one  of the                                                               
most  important state  agencies  that affect  the  lives of  many                                                               
people in Alaska and someone  with the best available credentials                                                               
is needed.  In recent years,  public trust in the  department has                                                               
declined  he said.  It needs  a strong  well-qualified leader  to                                                               
rebuild this trust.                                                                                                             
                                                                                                                                
RUBEN  HANKE,  representing   himself,  Soldotna,  supported  Ms.                                                               
Campbell's  appointment saying  she is  up to  speed in  the game                                                               
arena, as  well. He has worked  with her over the  past few years                                                               
in her capacity as a fish  advisor for the governor; she has been                                                               
easy to work  with and has worked hard to  understand the diverse                                                               
dynamics of all Alaska fisheries.  She is approachable and a good                                                               
listener.                                                                                                                       
                                                                                                                                
3:55:20 PM                                                                                                                    
CARL  JOHNSTONE,  Vice-Chair, Board  of  Fisheries,  said he  was                                                               
speaking for himself.  He has known Ms. Campbell  for three years                                                               
and has  watched her grow in  her position as a  fisheries policy                                                               
advisor  and now  as a  commissioner-designee.  He supported  her                                                               
confirmation.  Some concern  has been  expressed about  potential                                                               
lack of  scientific experience  and background  and he  said that                                                               
type  of experience,  while helpful,  is not  necessary for  that                                                               
position.  For example  the Board  of  Fisheries is  a lay  board                                                               
without scientific background, yet they  set policy on the use of                                                               
the  resource while  using the  information that  is provided  to                                                               
them by the department.                                                                                                         
                                                                                                                                
The commissioner-designee  is surrounded by managers  and experts                                                               
to provide information  to her provides information  to the board                                                               
but they  set policy  decisions. The  position does  require good                                                               
leadership  capability  and not  all  scientists  have that.  Her                                                               
capability  has been  demonstrated by  the type  of "outstanding"                                                               
people  she  has hired.  Mr.  Johnstone  said that  Ms.  Campbell                                                               
attends most Board of Fisheries meetings.                                                                                       
                                                                                                                                
3:57:17 PM                                                                                                                    
JOHN  JENSEN,  representing himself,  Petersburg,  said  he is  a                                                               
member of Board of Fisheries  and the United Fishermen of Alaska.                                                               
He was born and raised  in Petersburg and has commercially fished                                                               
for 45 years. He is an  avid hunter, sport fisher and subsistence                                                               
user and  has been  involved in  fish politics  for 20  years. He                                                               
said he  supported Ms. Campbell's  nomination; she may  be young,                                                               
but she  has a long  history of involvement with  resource issues                                                               
as well  as dealing with the  multitude of federal issues.  He is                                                               
also impressed with her selection of staff.                                                                                     
                                                                                                                                
MIKE  SMITH,  Director,  Subsistence  Resources,  Tanana  Chief's                                                               
Conference,  Fairbanks, supported  Ms. Campbell's  nomination for                                                               
commissioner  of  ADF&G.  He  said  the  history  of  subsistence                                                               
battles  has  left  scares,  but  in  this  situation  they  were                                                               
"extremely  pleased" when  they reached  out to  her about  their                                                               
subsistence concerns  with her readiness  to talk about  them. He                                                               
and  others  on  the  Conference  were  extremely  impressed  and                                                               
hopeful  that she  would do  her statutory  duty and  protect the                                                               
subsistence uses for all Alaskans.                                                                                              
                                                                                                                                
4:00:13 PM                                                                                                                    
SARAH  JACKINSKY,   representing  herself,  Homer,   opposed  Ms.                                                               
Campbell's appointment. She said she  is a Native Alaskan and has                                                               
fished  commercially   with  her  family  and   hunted.  She  was                                                               
disappointed  in   Ms.  Campbell's  verbal  explanation   of  her                                                               
background  in the  House Resources  Committee;  neither did  she                                                               
give  substantive  answers to  the  committee  questions. She  is                                                               
unqualified and has no background  in any field that is pertinent                                                               
to management  of Alaska's fish  and game; neither does  she have                                                               
any scientific, research, economic or conservation background.                                                                  
                                                                                                                                
She urged committee  members to examine the process  by which Ms.                                                               
Campbell was  considered for appointment  as she  understands the                                                               
state process was  not adhered to. Usually the Board  of Fish and                                                               
Game submit  a list to the  governor to choose from;  but in this                                                               
case, Governor Parnell  submitted the list and chose  from one of                                                               
his picks.                                                                                                                      
                                                                                                                                
4:02:32 PM                                                                                                                    
JERRY  MCCUNE,   United  Fishermen   of  Alaska,   supported  Ms.                                                               
Campbell's confirmation. Two  people had to leave,  so he relayed                                                               
that Linda  Bacon, Alaska Long Line  Fishermen's Association, and                                                               
Julie   Curry,  Petersburg   Vessel  Owners'   Association,  both                                                               
supported her  as well. He  said he has  been around a  long time                                                               
and  went through  a lot  of commissioners  and he  welcomes this                                                               
choice;  she is  a youthful  choice and  has good  ideas. He  has                                                               
worked with her  over the past 10 years and  has found her always                                                               
prepared. In his  opinion coming up through  the department isn't                                                               
always an advantage.                                                                                                            
                                                                                                                                
4:03:44 PM                                                                                                                    
JIM  PRESTON,  representing  himself,  supported  Ms.  Campbell's                                                               
nomination. He actually worked with  her on an advisory panel and                                                               
even though  she represented commercial interests  in Petersburg,                                                               
she went out  of her way to  work with him on  halibut issues. He                                                               
found  her more  qualified  than some  predecessors  in terms  of                                                               
education and background.                                                                                                       
                                                                                                                                
SENATOR  FRENCH  asked  Ms.  Campbell   to  imagine  she  becomes                                                               
governor and had  to appoint people and if she  would send him an                                                               
attorney general who  didn't have a law degree  or a commissioner                                                               
of education who didn't have a degree in education.                                                                             
                                                                                                                                
COMMISSIONER  CAMPBELL  replied  that  she wouldn't  send  him  a                                                               
commissioner of education  who didn't have a  degree in education                                                               
because  statute   lays  out   specific  requirements   for  that                                                               
position. But  his question goes  more to  how the fact  that she                                                               
doesn't have a biology degree  relates to her qualifications as a                                                               
commissioner  for  the  Department  of  Fish  and  Game  and  her                                                               
response was that over the course  of her career dealing with the                                                               
Department  of Fish  and  Game  she has  had  the opportunity  of                                                               
dealing  with at  least four  different  commissioners. Of  those                                                               
folks,  one was  a career  biologist; the  other three  were not.                                                               
Based  on her  experience with  them  she wouldn't  say that  she                                                               
found one of  those models to be more successful  than the other.                                                               
The commissioner's  job has a  lot of  aspects having to  do with                                                               
navigating  the   regulatory  process,  policy,   management  and                                                               
administration  and she  has been  exposed to  them all  over the                                                               
course of her career. These  qualities are probably more relevant                                                               
to  being a  successful commissioner  than having  any particular                                                               
degree.                                                                                                                         
                                                                                                                                
Many well qualified scientists at  the department carry out those                                                               
duties. She  surrounds herself with a  team of people who  have a                                                               
variety  of backgrounds  perspectives  and  qualifications to  be                                                               
sure  that she  is getting  the  broadest picture.  She said  she                                                               
relies  on  the  judgment  of   folks  with  advanced  scientific                                                               
training for questions  of science and if a  commissioner came in                                                               
and  substituted  their  own  judgment for  that  of  the  agency                                                               
scientists she would  be concerned. But that is  not the approach                                                               
she has taken.                                                                                                                  
                                                                                                                                
4:08:07 PM                                                                                                                    
SENATOR PASKVAN said he was  impressed by AFN's letter of support                                                               
for  her nomination  and  asked her  to comment  on  the role  of                                                               
subsistence  in   the  management  of  Alaska's   fish  and  game                                                               
resources.                                                                                                                      
                                                                                                                                
COMMISSIONER  CAMPBELL replied  that  subsistence  is accorded  a                                                               
priority  under  state  law  when   it  comes  to  allocation  of                                                               
resources; also  under federal law,  rural subsistence  users are                                                               
given  a  preference on  federal  public  lands and  waters.  She                                                               
considers the  use of  subsistence and the  carrying on  of those                                                               
traditions a very  important part of the fabric of  the state. It                                                               
is something she would manage  "to preserve and protect." She has                                                               
talked with subsistence users about  the desire of the department                                                               
to work with  them to find areas where they  can work together to                                                               
let them  know the  department has  a true desire  to live  up to                                                               
that obligation.                                                                                                                
                                                                                                                                
SENATOR  WIELECHOWSKI  said there  was  some  testimony about  an                                                               
exodus of  experienced biologists and managers  at the Department                                                               
of Fish  and Game.  Last year  40 biologists  signed a  letter of                                                               
protest to  an appointee  and he understands  there is  low staff                                                               
morale  there.  He asked  if  that  was  her experience  and  her                                                               
assessment of the situation. What  are her plans to address areas                                                               
of weakness there?                                                                                                              
                                                                                                                                
COMMISSIONER CAMPBELL replied that  she wouldn't characterize the                                                               
situation at the  department as one of low staff  morale; most of                                                               
the  employees  are   proud  to  work  there.  But   she  said  a                                                               
significant portion  of the workforce  is eligible to  retire and                                                               
she  is putting  forth significant  efforts towards  recruitment,                                                               
retention and workforce development within the department.                                                                      
                                                                                                                                
SENATOR WIELECHOWSKI said everyone he  has seen is top notch, but                                                               
he  has still  heard about  morale problems.  He said  there were                                                               
some proposals  to limit dip netting  on the Kenai and  he wanted                                                               
to know if she supported those proposals.                                                                                       
                                                                                                                                
COMMISSIONER  CAMPBELL replied  that the  Board of  Fisheries had                                                               
four  proposals  to limit  the  dip  net  fishery and  none  were                                                               
adopted. It's the board's role  to allocate the resource, but the                                                               
department's role is to provide good harvest accounting.                                                                        
                                                                                                                                
SENATOR WIELECHOWSKI said he understood  that, but at the same he                                                               
asked her if  any recommendations were made by  the department to                                                               
curtail dip netting.                                                                                                            
                                                                                                                                
COMMISSIONER CAMPBELL  replied that  the department has  a policy                                                               
when commenting  on proposals to  the Board of Fisheries  or Game                                                               
of  not  making  comments  or  recommendations  about  allocative                                                               
impacts.                                                                                                                        
                                                                                                                                
4:12:50 PM                                                                                                                    
SENATOR WIELECHOWSKI said he had  heard some testimony on halibut                                                               
take and asked what her opinions on that are.                                                                                   
                                                                                                                                
COMMISSIONER   CAMPBELL  answered   that  halibut   is  federally                                                               
managed. The ADF&G  doesn't have any ability  to develop specific                                                               
management measures;  so her interaction with  halibut management                                                               
is  primarily through  her vote  on the  North Pacific  Fisheries                                                               
Management Council.  But the department  is responsible  for data                                                               
gathering  for that  fishery  and estimation  of  harvest in  the                                                               
sport charter fishery.  One of the things they  have been working                                                               
on over  the past several weeks  is an analysis of  a restriction                                                               
that was adopted by the  International Pacific Halibut Commission                                                               
that would restrict  charter anglers in Southeast to  one fish no                                                               
larger  than 37  inches. The  best information  available to  the                                                               
department indicates  that that is likely  overly restrictive and                                                               
would cause that  sector to undershoot their  allocation by about                                                               
22 percent.  So, they have provided  analysis and recommendations                                                               
to  the  commission  suggesting that  they  reconsider  that  and                                                               
adopt something that is less  restrictive and would allow them to                                                               
get in the neighborhood of their allocation.                                                                                    
                                                                                                                                
She said that is one short  term issue they have been working on,                                                               
but halibut  management has other  issues that are going  to have                                                               
to  be  considered by  the  council  including development  of  a                                                               
mechanism to allow  halibut quota to flow  between the commercial                                                               
and charter sectors.                                                                                                            
                                                                                                                                
CO-CHAIR WAGONER said  he was turning the gavel  over to Co-Chair                                                               
Paskvan  who  would  hold  the  gavel on  the  hearings  for  Mr.                                                               
Sullivan, but  invited her stay  later for questions if  there is                                                               
time at the end of the meeting.                                                                                                 
                                                                                                                                
4:15:26 PM                                                                                                                    
CO-CHAIR  PASKVAN welcomed  Dan Sullivan,  Department of  Natural                                                               
Resources (DNR) commissioner-designee to committee.                                                                             
                                                                                                                                
4:16:14 PM                                                                                                                    
DAN  SULLIVAN,   Commissioner-designee,  Department   of  Natural                                                               
Resources  (DNR), said  he was  Alaska's attorney  general before                                                               
this appointment. He briefed the  committee on his background and                                                               
work experience  saying he recently  completed being  the state's                                                               
attorney general for  the last year and a half.  During that time                                                               
his  number one  priority was  to reduce  the epidemic  of sexual                                                               
assault and domestic violence in the  State of Alaska, but he was                                                               
also very  involved in resource development  issues, particularly                                                               
as they related to the  Endangered Species Act, Outer Continental                                                               
Shelf development and federal overreach issues.                                                                                 
                                                                                                                                
Prior to  being the attorney general,  Commissioner Sullivan said                                                               
he was  in and out of  Washington D.C. for a  few years primarily                                                               
working  for  Condoleezza Rice  when  she  was National  Security                                                               
Advisor; he worked  as a director on  the International Economics                                                               
Directorate at  the National Security  Council and  more relevant                                                               
to  this  position  as  assistant  secretary  of  state  for  the                                                               
Economic   and   Energy  Affairs   Bureau   where   he  had   the                                                               
responsibility for  global energy, economic, finance  issues with                                                               
her  and   other  senior  U.S.  government   officials.  In  that                                                               
position, he  focused a  lot on  energy issues  and was  the U.S.                                                               
governing board member to the  International Energy Agency, which                                                               
is considered  the premier energy  security agency in  the world.                                                               
He was  a leader on  Central Asia and Caspian  energy development                                                               
projects  for  the  U.S.  and worked  closely  with  the  federal                                                               
coordinator  for  the  Arctic  Pipeline  issue  and  worked  very                                                               
closely with the chairman of  the Arctic Research Commission, and                                                               
now  with   Lieutenant  Governor   Mead  Treadwell   and  Senator                                                               
Murkowski on the federal government's  new Arctic policy that has                                                               
a significant resource development component.                                                                                   
                                                                                                                                
COMMISSIONER SULLIVAN said prior to  moving to Washington, he was                                                               
an attorney in Alaska and worked  as a law clerk in Fairbanks for                                                               
Judge  Kleinfeld on  the  U.S.  Court of  Appeals  for the  Ninth                                                               
Circuit, was  a law  clerk for Chief  Justice Warren  Matthews on                                                               
the Alaska Supreme  Court and was in private  practice focusing a                                                               
lot  on commercial  transactions  representing small  businesses,                                                               
mostly  Native  corporations. He  is  also  a U.S.  Marine  being                                                               
either  in active  duty  or  reserve status  since  1993. He  has                                                               
served as  a rifle team  commander, a  task force commander  of a                                                               
special operations  search and rescue  mission and  staff officer                                                               
to the  commander of U.S. Central  Command which had a  lot to do                                                               
with energy related policies (currently  in command of the Middle                                                               
East). He  is currently the  commander of an  anti-terrorism unit                                                               
that has Marines based in Alaska and Montana.                                                                                   
                                                                                                                                
4:20:30 PM                                                                                                                    
Finally, he  said he is  the father of  three daughters and  is a                                                               
husband to  a wonderful wife. After  three months on the  job, he                                                               
is just scratching  surface in many ways. But  despite not having                                                               
a full grasp, he has  the background and experience that provides                                                               
him with  the skill set  and knowledge on certain  broader issues                                                               
that are  helpful if he is  confirmed. First, he has  managed and                                                               
led large organizations successfully,  particularly in the public                                                               
sector; he has  worked on developing and  implementing high level                                                               
strategy; he has led several  complex negotiations either for the                                                               
U.S. or  the State of  Alaska; and  he has a  decent perspective,                                                               
understanding  and  involvement  with global  energy  issues  and                                                               
markets.  Finally, he  said through  his experience  he has  seen                                                               
firsthand the  importance of  partnership among  key stakeholders                                                               
in terms of getting big  projects completed. The number one thing                                                               
he  has  been working  on  is  trying  to  foster the  notion  of                                                               
partnership throughout the state.                                                                                               
                                                                                                                                
4:23:38 PM                                                                                                                    
SENATOR STEVENS  remarked that  he has  a stellar  background and                                                               
that  they had  "enormous  trust"  in him  when  he was  attorney                                                               
general. What personal  goals does he have? How do  you work with                                                               
an  organization this  large? Are  there any  skills he  needs to                                                               
work on?                                                                                                                        
                                                                                                                                
COMMISSIONER SULLIVAN  responded that his goals  are very focused                                                               
right now on DNR, but everyone  is working on some goals together                                                               
that DNR is going to play a big  role in. The number one issue in                                                               
the state in that regard is  the TAPS throughput issue. He said a                                                               
lot of  them are  involved in  public service  and his  is driven                                                               
largely by the fact that he wants  to leave his girls with a good                                                               
home  state  they  want  to   live  in.  Integrity  is  of  first                                                               
importance as well  as input from the  professionals. He believes                                                               
in  a good  offense on  a lot  of initiatives  and getting  those                                                               
ideas from the  staff is a good way to  keep people motivated and                                                               
excited about their work.                                                                                                       
                                                                                                                                
SENATOR  FRENCH  said he  appreciates  his  understanding of  the                                                               
collaborative nature between  the administration and legislature;                                                               
his outreach and communication skills  are good and he would have                                                               
been happy  for Mr.  Sullivan to remain  as attorney  general. He                                                               
asked  if it's  true that  he doesn't  have a  degree in  natural                                                               
resources.                                                                                                                      
                                                                                                                                
COMMISSIONER  SULLIVAN replied  that is  very true.  He commented                                                               
that  as a  witness for  the last  nominee that  she would  be an                                                               
excellent commissioner.                                                                                                         
                                                                                                                                
SENATOR FRENCH said the  legislature constantly needs information                                                               
and  his  department sits  on  a  hoard  of information  that  is                                                               
extremely valuable  to the public, industry  and the legislature.                                                               
The Division of Oil and Gas  is an obvious example. Some weeks he                                                               
needs information  from them maybe  two or  three times a  day as                                                               
they try to set policy. He  asked Mr. Sullivan what his policy is                                                               
with  respect  to  communications  between the  subunits  of  his                                                               
department and the legislature.                                                                                                 
                                                                                                                                
COMMISSIONER  SULLIVAN  responded  that   he  believes  in  being                                                               
transparent  with the  legislature. He  understands the  value of                                                               
data  and that  the state  is the  resource owner,  but sometimes                                                               
data  is  confidential  for  statutory  or  other  reasons.  It's                                                               
important to  look at how  that balance is undertaken  whether in                                                               
statute or regulation;  it's there for a  reason. Companies spend                                                               
a lot  of money to get  certain commercial data and  they want to                                                               
guard it,  which is reasonable;  but it's also  important because                                                               
the  state  is  the  resource  owner and  manager  of  the  land.                                                               
Balancing  how and  to what  degree that  data is  released, made                                                               
public  or  provided to  other  policy  makers is  a  complicated                                                               
issue.                                                                                                                          
                                                                                                                                
4:30:19 PM                                                                                                                    
SENATOR FRENCH said  he wanted to touch on  the confidential data                                                               
issue  and said  that he  doesn't  want it  nor does  he want  it                                                               
released to him, but he thought  it would be worth considering as                                                               
a state  not so much  what data is  confidential but how  much it                                                               
actually gets  from the industry. Administration  consultants for                                                               
the oil and gas tax debate  have said the state is handicapped in                                                               
terms of getting  information and that is wrong.  He doesn't need                                                               
to see it, but certainly  the Department of Natural Resources and                                                               
the  Department  of Revenue  need  to  see  it.  Has he  set  any                                                               
policies  or   procedures  with   respect  to  the   ability  the                                                               
department's  employees'  ability   to  communicate  outside  the                                                               
department?  Are they  free to  speak to  the public  and to  the                                                               
legislature  or  do they  have  to  channel their  communications                                                               
through the commissioner?                                                                                                       
                                                                                                                                
COMMISSIONER SULLIVAN responded that it  is fine for directors to                                                               
testify, but  from the management  perspective of an  agency it's                                                               
very important  for them to  understand what they are  saying and                                                               
on some  key issues making  sure they  are "all singing  from the                                                               
same sheet  of music." He has  told his directors that  it's most                                                               
important to establish  a very good strong  relationship with the                                                               
legislature and they have been  testifying quite a lot. Important                                                               
issues are coordinated through him.                                                                                             
                                                                                                                                
4:32:43 PM                                                                                                                    
CO-CHAIR WAGONER said  Fairbanks game management unit  20 has had                                                               
some  access problems  mainly due  to overuse  of that  Rex Trail                                                               
that DNR  closed. His information  is that DNR  wasn't connecting                                                               
with ADF&G;  therefore the trail  got overused  and it had  to be                                                               
closed. That  trail is  one of  the main  accesses for  that game                                                               
management  unit, which  is very  productive because  of predator                                                               
control.  What  will he  do  to  establish better  communications                                                               
between the two  departments to make sure that  doesn't happen in                                                               
the future?                                                                                                                     
                                                                                                                                
COMMISSIONER SULLIVAN answered  he had no idea of  the anger that                                                               
exists in  Fairbanks on RS2477  access issues to state  lands and                                                               
he  is  already  taking  aggressive  action.  The  governor  gets                                                               
resource  commissioners together  on  a regular  basis to  better                                                               
coordinate  on issues  that cross  agency  boundaries. Just  last                                                               
week, he had a meeting  last week with Commissioner Campbell over                                                               
contentious coastal zone management issues.                                                                                     
                                                                                                                                
4:36:31 PM                                                                                                                    
SENATOR WIELECHOWSKI  said the  concern with a  lack of  data the                                                               
state  has compared  to what  most other  sovereign jurisdictions                                                               
have has  become clear to  everyone as they  work on the  oil tax                                                               
issue. Other jurisdictions require  specific levels of investment                                                               
and/or production within  a set time frame  and have requirements                                                               
to provide the state with data.  Alaska seems to be much more lax                                                               
than those jurisdictions. If this is  a problem, what is he doing                                                               
to rectify that?  Is he looking at the future  oil and gas leases                                                               
for ongoing investment  to determine whether or  not they protect                                                               
Alaska's interests?                                                                                                             
                                                                                                                                
COMMISSIONER SULLIVAN answered it's  a two-part question, but the                                                               
answer  to  both is  it's  a  balance  that state  officials  and                                                               
industry  need  to  talk about.  It's  reasonable  that  industry                                                               
safeguards certain  data, but having  certain data will  make the                                                               
state   a  better   manager.  There   are  different   realms  of                                                               
confidentiality; the Division  of Oil and Gas gets  data that the                                                               
public doesn't. For instance, he has  looked at a few things like                                                               
getting more  cost and  budget data  and information  on physical                                                               
core slabs  at the Eagle  River Geological Materials  Center, "an                                                               
unbelievable resource for  the state that has core  data on wells                                                               
that  have  been drilled  that  go  back  decades." To  this  day                                                               
industry  still comes  in and  uses it  to make  major investment                                                               
decisions. Most  of the  information is  provided on  a voluntary                                                               
basis; it  has no  statutory requirement,  but the  state doesn't                                                               
have a lot of access to data even interpretive data.                                                                            
                                                                                                                                
4:41:11 PM                                                                                                                    
On the issue of leases, he  sent Senator Wagoner a letter on some                                                               
things  they are  looking at  with  regard to  leases that  might                                                               
encourage  work   commitments  and  shorter  leases   that  might                                                               
encourage  accelerated production.  But those  things need  to be                                                               
looked at  in terms of  a balance. He  hopes Alaska has  not been                                                               
driving away potential bidders.                                                                                                 
                                                                                                                                
SENATOR WIELECHOWSKI  asked how freely  members of his  staff can                                                               
be  to talk  to  legislators.  Have some  employees  at DNR  been                                                               
instructed  not to  meet or  assist legislators,  particularly on                                                               
oil tax issues?                                                                                                                 
                                                                                                                                
MR.  SULLIVAN answered  not through  him. His  answer to  Senator                                                               
French on the same questions is  that it is important to keep him                                                               
apprised  of   what  kind  of  conversations   people  have  with                                                               
legislators.   His  general   guidance  to   his  directors,   in                                                               
particular,   has  been   respect  and   responsiveness  to   the                                                               
legislature.                                                                                                                    
                                                                                                                                
4:44:22 PM                                                                                                                    
CO-CHAIR WAGONER went  back to last year's lease  sale with Great                                                               
Bear and Armstrong; maybe they  were smarter than average and got                                                               
in on  the ground floor, but  it seems when there  are plays like                                                               
that in  the shale  and the  tight sands,  that the  state should                                                               
consider decreasing the size of  leases, because 500,000 acres is                                                               
pretty large for  small companies or even a large  company. Is he                                                               
thinking about decreasing the size next time?                                                                                   
                                                                                                                                
MR. SULLIVAN  answered that  500,000 acres  is the  maximum lease                                                               
size under  statute. He  wasn't here then,  but it's  positive in                                                               
that a  couple of companies are  up here creating a  buzz and are                                                               
hopefully on  the cutting edge  of what could  be a new  phase of                                                               
development in Alaska. If he is  confirmed he intends to "get out                                                               
and create more of a buzz" and in  the fall maybe a lot of people                                                               
will show  up. Alaska doesn't  compare that well to  other states                                                               
in  terms of  lease activity.  Companies are  giving back  leases                                                               
early and that is not a good trend.                                                                                             
                                                                                                                                
CO-CHAIR  PASKVAN asked  regarding the  administration's goal  of                                                               
increasing  pipeline throughput  his  thoughts on  the future  of                                                               
unconventional  oil  including  shale oil  and  the  department's                                                               
readiness and duty  to produce. Part of the question  is when one                                                               
has that large an acreage  and their duty to produce conventional                                                               
and unconventional plays.                                                                                                       
                                                                                                                                
4:49:33 PM                                                                                                                    
COMMISSIONER SULLIVAN replied that Armstrong  and Great Bear is a                                                               
wakeup call for staff, but they  are getting in front of it. They                                                               
are trying  to think  through to what  degree those  leases would                                                               
need  to  be   unitized.  They  are  thinking   through  ways  to                                                               
accelerate  possible development.  He is  trying to  not let  the                                                               
state  get in  the way  and to  support an  aggressive timetable.                                                               
Shale plays  have new  issues like  water use  and infrastructure                                                               
that don't  concern traditional oil  development. BP's  heavy oil                                                               
pilot project  has a  lot more aggressive  timetable than  he has                                                               
heard of and he is having discussions internally and externally.                                                                
                                                                                                                                
He said  he has been  meeting with  companies and with  the North                                                               
Dakota DNR equivalents  to get their views. He  is pretty focused                                                               
on  it; DNR  has a  lot of  good people  and there  is excitement                                                               
about it.                                                                                                                       
                                                                                                                                
CO-CHAIR PASKVAN opened public testimony.                                                                                       
                                                                                                                                
4:52:22 PM                                                                                                                    
RICKY  GEASE,   Executive  Director,  Kenai   River  Sportfishing                                                               
Association  (KRSA),  supported  Mr. Sullivan's  appointment.  He                                                               
brings a fresh approach to  management and has chosen to surround                                                               
himself  with good  directors  - Ben  Ellis,  in particular  with                                                               
State  Parks  and  with  Mr.  Balash and  Mr.  Fogels  as  deputy                                                               
commissioners.                                                                                                                  
                                                                                                                                
4:53:47 PM                                                                                                                    
MELVIN   GROVE,  President,   Alaska  Outdoor   Access  Alliance,                                                               
supported Mr. Sullivan's appointment.  Current staff changes with                                                               
DNR  have  been positive.  Mr.  Grove  said  he  is part  of  the                                                               
litigation that sued  over closure of the Rex Trail  and it is an                                                               
extremely important issue to people  in the area. Access to their                                                               
fish  and game  is critical  in order  to be  able to  hunt. Some                                                               
people say there  was overuse of the trail, but  he disagreed. It                                                               
was a needed use; it's a  trail and most of those complaining had                                                               
cabins  in that  area and  didn't like  the competition  for that                                                               
resource.                                                                                                                       
                                                                                                                                
4:56:49 PM                                                                                                                    
Finding  no  further  comments  Co-Chair  Paskvan  closed  public                                                               
testimony.  He thanked  both  commissioner  designees for  coming                                                               
before the Senate Resources Committee  today. He moved to forward                                                               
both names to  the full body for consideration saying  this in no                                                               
way obligated  anyone to vote  for or  against the person  on the                                                               
floor. There were no objections and it was so ordered.                                                                          
                                                                                                                                
4:58:18 PM                                                                                                                    
CO-CHAIR PASKVAN adjourned the meeting at 4:56 p.m.                                                                             

Document Name Date/Time Subjects
Cora Campbell - Resume.pdf SRES 3/23/2011 3:30:00 PM
Commissioner Daniel Sullivan - Bio.pdf SRES 3/23/2011 3:30:00 PM