Legislature(2011 - 2012)BUTROVICH 205
03/23/2011 03:30 PM Senate RESOURCES
| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearings | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
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 |