Legislature(2011 - 2012)BUTROVICH 205
04/04/2011 03:30 PM Senate RESOURCES
| Audio | Topic |
|---|---|
| Start | |
| SB85 | |
| Confirmation Hearings: Aogcc, Commercial Fisheries Entry Commission, and Board of Fisheries | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 85 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
SENATE RESOURCES STANDING COMMITTEE
April 4, 2011
3:31 p.m.
MEMBERS PRESENT '5$)7
Senator Joe Paskvan, Co-Chair
Senator Thomas Wagoner, Co-Chair
Senator Bill Wielechowski, Vice Chair
Senator Bert Stedman
Senator Lesil McGuire
Senator Hollis French
Senator Gary Stevens
MEMBERS ABSENT
All members present
OTHER LEGISLATORS PRESENT
Senate Cathy Giessel
COMMITTEE CALENDAR
SENATE BILL NO. 85
"An Act providing for a tax credit applicable to the oil and gas
production tax based on the cost of developing new oil and gas
production; and providing for an effective date."
- HEARD & HELD
CONFIRMATION HEARINGS
Alaska Oil and Gas Conservation Commission
Dan Seamount
- CONFIRMATION ADVANCED
Commercial Fisheries Entry Commission
Ben Brown
- CONFIRMATION ADVANCED
Board of Fisheries
William Brown
Susan Jeffrey
John Jensen
Michael Smith
- CONFIRMATIONS ADVANCED
PREVIOUS COMMITTEE ACTION
BILL: SB 85
SHORT TITLE: TAX CREDIT FOR NEW OIL & GAS DEVELOPMENT
SPONSOR(s): SENATOR(s) WAGONER
02/07/11 (S) READ THE FIRST TIME - REFERRALS
02/07/11 (S) RES, FIN
02/25/11 (S) RES AT 3:30 PM BUTROVICH 205
02/25/11 (S) Heard & Held
02/25/11 (S) MINUTE(RES)
02/28/11 (S) RES AT 3:30 PM BUTROVICH 205
02/28/11 (S) Heard & Held
02/28/11 (S) MINUTE(RES)
03/07/11 (S) RES AT 3:30 PM BUTROVICH 205
03/07/11 (S) Heard & Held
03/07/11 (S) MINUTE(RES)
03/09/11 (S) RES AT 3:30 PM BUTROVICH 205
03/09/11 (S) Heard & Held
03/09/11 (S) MINUTE(RES)
03/25/11 (S) RES AT 3:30 PM BUTROVICH 205
03/25/11 (S) Heard & Held
03/25/11 (S) MINUTE(RES)
03/28/11 (S) RES AT 3:30 PM BUTROVICH 205
03/28/11 (S) Heard & Held
03/28/11 (S) MINUTE(RES)
03/30/11 (S) RES AT 3:30 PM BUTROVICH 205
03/30/11 (S) Heard & Held
03/30/11 (S) MINUTE(RES)
04/01/11 (S) RES AT 3:30 PM BUTROVICH 205
04/01/11 (S) <Above Item Removed from Agenda>
04/01/11 (S) MINUTE(RES)
04/04/11 (S) RES AT 3:30 PM BUTROVICH 205
WITNESS REGISTER
MICHAEL PAWLOWSKI, Staff
Senator Lesil McGuire
Alaska State Legislature
Juneau, AK
POSITION STATEMENT: Described changes to CSSB 85, version X on
behalf of the sponsor.
DAN SEAMOUNT, nominee
Alaska Oil and Gas Conservation Commission
Anchorage, AK
POSITION STATEMENT: Testified as nominee to the Alaska Oil and
Gas Conservation Commission
JOHN JENSEN, nominee
Board of Fisheries
Petersburg, AK
POSITION STATEMENT: Testified as nominee to the .
BENJAMIN BROWN, nominee
Commercial Fisheries Entry Commission
Juneau, AK
POSITION STATEMENT: Testified as nominee to the Commercial
Fisheries Entry Commission.
WILLIAM S. BROWN, nominee
Board of Fisheries
Juneau, AK
POSITION STATEMENT: Testified as nominee to the Board of
Fisheries.
SUSAN JEFFREY, nominee
Board of Fisheries
Juneau, AK
POSITION STATEMENT: Testified as nominee to the Board of
Fisheries.
MICHAEL E. SMITH, nominee
Board of Fisheries
Newlato, AK
POSITION STATEMENT: Testified as nominee to the Board of
Fisheries.
KARL JOHNSTONE, representing himself
POSITION STATEMENT: Testified in support of the appointments of
John Jensen, William Brown, and Michael Smith to the Board of
Fisheries.
JULIANNE CURRY, Executive Director
Petersburg Vessel Owners Association
Petersburg, AK
POSITION STATEMENT: Testified in support of the appointment of
John Jensen to the Board of Fisheries.
KENNY WILSON, representing himself
Dillingham, AK
POSITION STATEMENT: Testified in opposition to the appointment
of John Jensen to the Board of Fisheries.
DON FOX, representing himself
Kodiak, AK
POSITION STATEMENT: Testified in support of the appointment of
William Brown, Susan Jeffrey, John Jensen and Michael Smith to
the Board of Fisheries.
LINDA KOZAK, Consultant
Bering Sea fisheries
POSITION STATEMENT: Testified in support of the appointment of
William Brown, Susan Jeffrey, John Jensen and Michael Smith to
the Board of Fisheries.
RICKY GEASE, Executive Director
Kenai River Sportfishing Association
POSITION STATEMENT: Testified in support of the appointment of
William Brown, Susan Jeffrey, John Jensen and Michael Smith to
the Board of Fisheries; Dan Seamount to the AOGCC; and Benjamin
Brown to the Commercial Fisheries Entry Commission.
ACTION NARRATIVE
3:31:41 PM
CO-CHAIR JOE PASKVAN called the Senate Resources Standing
Committee meeting to order at 3:31 p.m. Present at the call to
order were Senators Stevens, Stedman, French, McGuire, Paskvan,
and Wagoner. Senator Giessel was also present.
SB 85-TAX CREDIT FOR NEW OIL & GAS DEVELOPMENT
CO-CHAIR WAGONER announced the consideration of SB 85. [Version
27-LS0484\E was before the committee.]
3:32:41 PM
CO-CHAIR PASKVAN moved to withdraw version E and adopt CSSB 85,
labeled 27-LS0484\X ("version X"), as the working document.
CO-CHAIR WAGONER objected for discussion purposes.
3:33:26 PM
MICHAEL PAWLOWSKI, staff to Senator McGuire, stated that CSSB
85, version X, makes two substantive changes. The first is in
Section 2, page 2, lines 2-4. The timeframe for the Sec.
43.55.026 development cost credit was changed to within 24
months after completion of the first development well for a
qualifying pool, lease or property. This responds to the earlier
concern that the way the credit was established could have
incentivized producers to delay the beginning of production.
3:34:10 PM
The second substantive change is the addition of new sections 3
and 4. Section 3 amends AS 43.55.160(a), on page 3, lines 17-18,
by referring to a new subsection (f) in AS 43.55.160.
Section 4, [page 5, line 31 through page 6, lines 1-5,] adds the
new subsection (f). It increases the production tax value by the
value of the development cost credit under Sec 43.55.026. This
addresses the concern that qualified development expenditures
could be deducted from a person's tax liability, which would
essentially overcome the sponsor's intent of a 100 percent limit
on the credit.
MR. PAWLOWSKI said the other changes are largely conforming, and
based on moderate language suggestions by the Department of
Revenue (DOR). One of the most important is on page 2, line 16.
The development cost credit under Sec. 43.55.026 is 100 percent
of the qualified capital expenditures less other credits that a
producer would get under the current tax system. Now the
exploration credits under Sec 43.55.025 are included in the
calculation. If there is delineation work after the first
development well is drilled, this ensures that credit, too, will
be subtracted in determining the 100 percent.
Sections 6, 7, and 8 were renumbered to accommodate the new
sections.
SENATOR FRENCH asked if he had an estimate on the fiscal impact
of the changes.
MR. PAWLOWSKI answered no, but subsection (g), on page 3, lines
2-7, tightens the allocation language to clarify that the credit
earned under Sec. 43.55.026 can offset a person's tax liability
proportional to the volume of oil and gas produced that is
attributable to the pool or lease from which the credit was
earned. The goal is that the tax credit is only usable on
revenue the state isn't getting under current production.
3:37:44 PM
SENATOR WIELECHOWSKI joined the committee.
SENATOR FRENCH mused that this does a good job of ring-fencing
the credit, and he appreciates the focus.
CO-CHAIR WAGONER asked Senator McGuire to discuss Section 6.
SENATOR MCGUIRE asked the members to review the bill in detail
to better prepare to respond to those people who believe that
modification of the fiscal system is in order. She noted that
the Senate version of the bill does not have a progressivity
element, but it could be added. She emphasized that the Senate
is listening and that her goal is to ensure that Alaska remains
the number one oil and gas province in the nation. Tweaking the
tax code isn't difficult for her to accept, and this should be
the committee that is expert at doing that.
3:41:19 PM
SENATOR MCGUIRE explained that the proposal in Section 6 is to
establish an "Oil and Gas Competitiveness Review Board" to
maintain focus on the single largest revenue source that
supports the state. This board will consist of nine members: one
senator appointed by the president of the Senate; one
representative appointed by the speaker of the House of
Representatives; five public members appointed by the governor,
including one petroleum engineer, one geologist, one economist,
and one who is a member of an environmental or conservation
group; the commissioner of natural resources or their designee;
and the commissioner of revenue or their designee.
The legislative members will be co-chairs and each member will
serve for the duration of the Legislature during which he or she
is appointed. Each public member will serve three years and may
be reappointed. Vacancies will be filled in the manner of the
original appointment. Board members may be replaced at the
discretion of the person appointing that member. Public members
will not be compensated, but will receive per diem and travel
expenses, as authorized for boards and commissions under AS
39.20.180. The board may contract for professional services and
may hire administrative support staff.
3:44:44 PM
SENATOR MCGUIRE said the duties of the board set out in Sec.
44.99.610 are based on what the Province of Alberta did, when it
assessed the competitiveness of the province in terms of its
fiscal and regulatory regime. The board will be tasked with
reviewing the historical, current, and potential levels of
investment in the state's oil and gas sector on an ongoing
basis. Alaska currently does not have the necessary data in one
readily accessible location.
The board will also identify factors that affect investment in
oil and gas exploration, development, and production in this
state, including the tax structure, rates, and credits; royalty
requirements; infrastructure; workforce availability; and
regulatory requirements. She explained that this is meant to
compliment Alaska's Clear and Equitable Share (ACES), and to
highlight the need to have a board that is continually tracking
the state's overall competitiveness. The board will review the
competitive position of the state to attract and maintain
investment in the oil and gas sector as compared to the
competitive position of other regions with oil and gas
resources. She referenced the Wood Mackenzie report and
emphasized that members should be continually tracking the
updates to see how Alaska compares on a worldwide basis.
Another duty of the board will be to establish procedures to
accept and keep confidential information that is beneficial to
the work of the board. This includes creating a secure data room
and confidentiality agreements that will be signed by
individuals that have access to the confidential information.
3:50:47 PM
The board will make written findings, recommendations and
suggest legislation before December 1 of each year regarding:
changes to the state's regulatory environment that would
encourage investment while protecting the interests of the
people and the environment; changes to the state's fiscal regime
to encourage new and ongoing long-term investment and
development of the state's oil and gas resources; and
alternative means for increasing the state's ability to attract
and maintain investment and development of the state's oil and
gas resources.
SENATOR MCGUIRE said Sec. 44.99.620 states that all
commissioners who are responsible for information related to oil
and gas investment and activity in this state shall provide any
information that the board requires to carry out its duties. She
noted that legislation passed last year that directed the
Department of Natural Resources (DNR) to give a license on the
instate line returned great dividends. Except for information
that is confidential under AS43.05.230, a commissioner may
disclose information to the board that is otherwise
confidential.
SENATOR MCGUIRE welcomed suggestions with regard to Section 6
and opined that regardless of the viewpoint, Alaska is well
behind the times in adopting some sort of board to assess the
its competitiveness. She directed attention to a March 2011
report by Commonwealth North urging a competitiveness review.
CO-CHAIR WAGONER announced he would hold SB 85 in committee.
3:53:34 PM
^Confirmation Hearings: AOGCC, Commercial Fisheries Entry
Commission, and Board of Fisheries
CONFIRMATION HEARINGS
Alaska Oil and Gas Conservation Commission
CO-CHAIR WAGONER announced the next order of business would be
confirmation hearings. He asked Dan Seamount to give his
statement.
DAN SEAMOUNT, nominee, Alaska Oil and Gas Conservation
Commission (AOGCC), said it has been satisfying to serve on the
AOGCC for the past 11 years, and he'd like to continue. He holds
the petroleum geologist seat, and for three years he served as
chair. The mission of the AOGCC, in part, is to protect the
public interest in exploration and development of oil, gas, and
geothermal resources throughout the state. This includes
protection of groundwater. AOGCC primarily regulates underground
drilling and reservoir development operations.
MR. SEAMOUNT informed the committee that for 27 years prior to
working on the commission he worked in exploration and
development geology for Chevron, Marathon, and Unocal. He has a
master's degree in geology with an emphasis in geothermal
development and exploration, and holds a professional license in
Alaska.
He pointed out that ongoing issues include Cook Inlet energy
challenges; decreasing natural gas; natural gas storage issues;
the LNG plant closure; and the potential arrival of jack up
drilling rigs. The AOGCC is also reexamining the offshore and
extended-reach drilling regulation in light of the Gulf of
Mexico blowout, has taken over geothermal and other
nontraditional drilling, and is trying to educate the public
about hydraulic fracturing.
MR. SEAMOUNT asked the committee to support his reappointment.
3:57:17 PM
SENATOR FRENCH stated that Mr. Seamount keeps in touch with
legislators when he comes to Juneau, and is exactly the kind of
person that the commission needs.
SENATOR PASKVAN asked what role he sees technology playing, now
compared to five years ago, in the recovery of oil in the legacy
fields.
MR. SEAMONT replied the obvious things are viscous oil, ultra-
extended-reach drilling, and continuing enhanced oil recovery.
Geologic horizons that have been proven elsewhere may be coming
to the state including deep basin-centered gas on both the North
Slope and the Cook Inlet, and shale oil and shale gas. He said
Alaska has the foremost conventional and nonconventional oil and
gas potential of all the basins he's worked throughout the
country.
CO-CHAIR WAGONER asked his opinion of the Ormat Mount Spurr
Geothermal Project.
MR. SEAMOUNT replied he hasn't seen any results, but he believes
the project has a fairly good chance for success.
3:59:58 PM
CO-CHAIR PASKVAN asked him to talk about well workovers and the
number that are currently ongoing on the North Slope.
MR. SEAMOUNT responded well workovers are the number one way to
maintain, and sometimes increase, an oilfield's productivity.
It's done by perforating new zones and doing stimulations. The
data indicates that the numbers of well workovers have been
constant since 2003.
4:00:56 PM
CO-CHAIR PASKVAN asked if technology advances have helped well
workovers compared to 5-10 years ago.
MR. SEAMOUNT replied there have been modifications on well
workovers; hydraulic frac sizes are bigger and stimulations have
been tweaked so they are more effective.
CO-CHAIR WAGONER thanked Mr. Seamount, and stated that committee
action would be held until all the nominees were heard. He then
asked John Jensen to give his statement.
Board of Fisheries
4:02:27 PM
JOHN JENSEN, nominee, Board of Fisheries, said he has served on
the Board of Fisheries for nine years and would like to serve
another three-year term. He was born in Petersburg, and
continues to live there and work as a commercial fisherman.
SENATOR FRENCH asked what parts of the job he likes, what parts
he doesn't like, and which issues are the most difficult.
MR. JENSEN replied allocations are by far the most difficult
part of the job, but allocations for conservation aren't as
difficult as for different user groups. It is rewarding that
fisheries in the state are, for the most part, sustainable, he
said.
CO-CHAIR WAGONER asked what should be done to mitigate the
impact on the resource of having about 100,000 king salmon
intercepted in federal fisheries off the west coast and in the
Gulf of Alaska.
MR. JENSEN responded the king salmon issue along the entire
coast of Alaska is one of his biggest concerns, and those areas
are the most problematic. The board did write a letter to the
federal government about better management in the Bering Sea
fishery, and intended to write one this year about the Gulf. The
federal government has more observer coverage, particularly in
the Gulf of Alaska, and hopefully that will help. It will
probably be discussed at the meeting that's going on right now
in Anchorage, he said.
CO-CHAIR WAGONER asked what would be wrong with a mitigation
program where they put one back if they take one.
MR. JENSEN replied that sounds fair; the current methods for
keeping away from the king salmon don't seem to be working.
CO-CHAIR WAGONER urged him to continue to think about it,
because he and other legislators are ready to take some action.
It's been going on a long time with no improvement.
Commercial Fisheries Entry Commission
4:06:11 PM
CO-CHAIR WAGONER asked Ben Brown to tell the committee why he
should be endorsed as the newest member of the Commercial
Fisheries Entry Commission.
BENJAMIN BROWN, nominee, Commercial Fisheries Entry Commission,
Juneau, said he began service on March 1 and enjoys it very
much. He informed the committee that he is a life-long Alaskan
who worked in the Legislature before going to law school. In
addition to being a law clerk, he has been an administrative law
judge, a lobbyist, and now works in private practice. He
reminded the committee that the Limited Entry Act was adopted in
1973 after the voters amended the state constitution to allow
for limited entry. Up to that time it was clearly
unconstitutional. The amendment passed by a more than 3:1
margin, even in Kodiak. It was more popular than the
constitutional amendment that year that eliminated
discrimination against women in Alaska, and it was more popular
than the amendment creating the right to privacy.
The Limited Entry Act calls for three members with a broad range
of professional experience and no vested economic interest in
any limited fishery. Mr. Brown offered his belief that that his
resume and experience shows that he has a broad range of
professional experience, and he does not have any vested
interest in a commercial fishery. When he became aware that
Frank Holman was going to retire after many years of service, he
contacted Judge Larry Weeks, Judge Peter Froehlich and others to
ascertain whether or not they thought he had the necessary skill
set and aptitude for the job. When he submitted his name, the
Governor saw fit to appoint him. He reiterated that he's enjoyed
serving and would like the committee to support his appointment.
4:11:17 PM
SENATOR STEVENS asked if he'd had any surprises, or if the job
is exactly as he'd expected.
MR. BROWN replied it's a unique institution within state
government, and he tried not to bring preconceived notions. He's
listened to the other commissioners and 26 hard-working staff to
figure out their vision of how to be successful in the mission,
and he's tried to familiarize himself with the jurisprudence of
the cases.
CO-CHAIR WAGONER thanked Mr. Brown.
Board of Fisheries
CO-CHAIR WAGONER asked William Brown to give his statement.
4:13:11 PM
WILLIAM S. BROWN, nominee, Board of Fisheries, Juneau, said he
has lived in Alaska for 20 years, and has served on the Board of
Fisheries for one three-year term. The reason he'd like to serve
a second term is a continuing desire to help preserve the
fishery resource for Alaska's children, grandchildren, and great
grandchildren. The fish will last forever, only if they are
managed correctly. He explained that he holds a Doctorate in
Economics, and has provided training in statistical methods,
population dynamics and economic rationale for fishery
regulation. A background in statistics made it possible, during
his first term, to understand and analyze the models used to
estimate optimal sustained yield and other key parameters for
designing fishing regulations. Training in economics is also
helpful in understanding and calculating the economic impact of
various fisheries statewide. Biology and social issues do
matter, but so does the economic impact of communities.
MR. BROWN said he was surprised that board members were expected
to read so much. For example, there were 8,000 pages of material
to read for the Upper Cook Inlet meeting. As a board member he
made many tough and unpopular decisions, but his voting was
always based on logic and careful consideration. He said he
recognizes the importance of the job and has a desire to improve
the fisheries.
4:15:36 PM
SENATOR FRENCH asked him to talk about one of the more difficult
decisions he had to make while serving on the board.
MR. BROWN responded one of the most recent was in the Cook
Inlet. That is a mixed stock fishery making it perhaps the most
complex fishery in the state. Cook Inlet has a large commercial
fishery for sockeye salmon and just north is the largest sport
fishery in the state for king and silver salmon. The board had
to make a decision to get the optimal sustainable yield on
sockeye salmon for commercial fisheries, while also allowing
sufficient numbers of king and silver salmon for the sport
fisheries. Because there are several stocks of concern farther
north, it was necessary to make serious cuts in commercial
fishing. What complicated the matter was that it is not possible
to manage for maximum sustained yield with a mixed stock
fishery, because maximizing sustained yield for one species may
devastate another species. It was a difficult decision.
SENATOR FRENCH asked him to explain the article he wrote in 1994
called, "The Alaska Permanent Fund: good sense or political
expediency?"
MR. BROWN responded the main argument was that the Alaskan
economy needs to be diversified, and one solution would be to
use some of the Permanent Fund monies to stimulate a variety of
other industries across the state. He opined that spending that
money differently might result in better education and better
allocation of resources in the state.
CO-CHAIR WAGONER commented that it seems that there would be
fewer problems allocating fish to user groups, if there was a
better mitigation process for the high seas catch of king
salmon. He asked Mr. Brown to respond.
MR. BROWN said he would recommend salmon excluders on pollock
nets, and require them in both the Bering Sea and Gulf of
Alaska. That might exclude half the current king salmon catch.
It's also a good idea to put observers on the pollock boats, but
many of the king salmon that are caught in those nets are
juveniles and it's difficult to tell them from the pollock when
there are thousands of fish in the net. He added that drastic
measures are needed, and he'd consider a hard cap.
CO-CHAIR WAGONER said with enough practice it's not difficult to
differentiate between the two, and he would again ask what the
board can do to mitigate the salmon catch.
MR. BROWN said a first step would be to require salmon
excluders. He explained that the monitoring is electronic and
the camera can't tell the difference between pollock and
juvenile king salmon, so perhaps better monitoring is in order.
A hard cap is another step. Cooperation with federal fisheries
is necessary and that's difficult for the board to do on its
own, he said.
CO-CHAIR WAGONER said he understands that, but he wants him to
hold that thought.
4:22:46 PM
CO-CHAIR WAGONER asked Susan Jeffrey to give her statement.
SUSAN JEFFREY, nominee, Board of Fisheries, said the Alaska
Constitution wisely mandates that resources will be managed for
sustainability and the maximum benefit of the people. She
understands that the Board of Fisheries is charged with
conserving and developing the state's fisheries for all users.
It is also up to the board to make decisions about allocations
among the fisheries, which requires thoughtful analysis, based
on science and socio-economic factors. She said she also
understands that the deliberative public process can sometimes
be contentious. While it's not a process for the faint of heart,
she said she would be honored to serve, and help conserve the
fisheries resource for future generations. The Board of
Fisheries process plays a vital role.
MS. JEFFREY said that for nearly 40 years she has participated
in Alaska's subsistence, sport, and commercial fisheries.
Working as a fisheries writer and editor for many years, she
developed a keen understanding of the complexities involved in
managing Alaska's renewable fisheries resources. Currently she
is serving a second term on the Kodiak Island Borough Assembly
and this has helped her develop a deep appreciation for the
public process. She understands the importance of studying the
issues and carefully listening to all parties before
deliberating on matters.
MS. JEFFREY said she will be a newcomer on the board, and
therefore has a lot to learn. She promised to do her best to
ensure the sustainability of Alaska's fisheries for all user
groups, now and in the future.
4:27:53 PM
SENATOR STEVENS said he's known Ms. Jeffrey for many years, and
he'd like her to tell those who don't know her why she thinks
she is tough enough to do the job.
MS. JEFFREY responded she is both approachable and open-minded.
In the past she has had to report or vote on issues that put her
at odds with friends and acquaintances, but she's not
uncomfortable doing so because she does the homework.
CO-CHAIR WAGONER thanked Ms. Jeffrey and asked Michael Smith to
give his statement.
4:30:36 PM
MICHAEL E. SMITH, nominee, Board of Fisheries, said he is a
Koyukon Athabascan and his family is from Newlato on the Yukon
River. He's been a subsistence advocate for about 25 years and
has focused on fishery issues for the past 10 years, primarily
along the Yukon River. He said he's been involved in the Yukon
River treaty processes and has served on the king salmon bycatch
committee of the North Pacific Fishery Management Council.
Currently he's working on the chum bycatch issues and looking at
the king salmon bycatch issue in the Gulf of Alaska. He said
he's also worked in the Western Alaska Salmon Stock
Identification Program.
MR. SMITH said he's pleased to have been nominated. He's served
on the board for one meeting cycle, and found it very
interesting.
CO-CHAIR PASKVAN asked what his priorities would be.
MR. SMITH replied low abundance of king salmon is probably one
of the biggest priorities. Reduced returns all over Alaska are
hampering both personal and subsistence users.
CO-CHAIR WAGONER asked how he feels about mitigation of king
salmon due to interception on the high seas.
MR. SMITH replied the board is somewhat limited in its ability
to address actual mitigation, but it will continue to keep the
bycatch limits as low as possible. The North Pacific Fishery
Management Council didn't implement the 32,000 cap on king
salmon bycatch that the board advocated for, but for the first
time a cap is in place. Additionally, the 100 observer coverage
will have a positive effect on reporting and sampling.
CO-CHAIR WAGONER asked what the board discussed with regard to
king salmon escapement in the upper district of Cook Inlet. He
said he doesn't believe the commercial fleet has anything to do
with the reduction in those numbers because the kings generally
go through the central district much earlier than the fleet is
fishing on them.
MR. SMITH replied the board looked at action plans for six or
seven streams in that upper region, and each one had management
concerns about king salmon stocks. In-river restrictions were
put in place and some of the fisheries were shifted around. He
said that was his first upper Cook Inlet meeting and while the
issue is complex, he feels the board came up with a fairly
balanced approach to try to get more fish to the spawning
grounds.
4:37:50 PM
KARL JOHNSTONE, representing himself, said he has served on the
Board of Fisheries for the last three years and he is speaking
in support of John Jensen, William Brown, and Michael Smith.
John Jensen has a lot of experience and significant knowledge of
Alaska's fishery resources, and the entire board benefits from
this experience. He's always available to stakeholders and the
advisory committees.
William Brown has proven to be an effective and valuable member
of the board. He has raised the bar and overall performance of
the board. His background in economics and statistics has helped
the board understand and sometimes question conclusions or
science that is presented. This has helped the department as
well. He assimilates data quickly, studies hard, listens to user
groups, takes advisory committee comments seriously, and is an
active participant in the deliberative process.
Michael Smith is a new member who adds a dimension that's been
missing from the board. He provides a perspective on Interior
Alaska, including the Yukon and Kuskoquim rivers, and
subsistence users. He understands the resource and is already
familiar with the deliberative process. He studies hard and is
ready to listen to user groups.
4:43:20 PM
JULIANNE CURRY, Executive Director, Petersburg Vessel Owners
Association, stated support for John Jensen. He's bright and has
the institutional knowledge to be an effective board member. The
resource comes first; he puts science at the forefront, he
listens, and he treats people with respect. He has the
institutional knowledge that is imperative to manage the
fisheries, and is concerned with the issues before the North
Pacific Fishery Management Council, including king and halibut
bycatch.
4:45:01 PM
KENNY WILSON, representing himself, Dillingham, said he is a
Bristol Bay fisherman who is speaking against the reappointment
of John Jensen because in the past he hasn't taken the
recommendations of the advisory committees. Mr. Jensen voted to
open the outer Port Heiden area in 2010, which resulted in the
interception of 5,694,479 sockeye and silver salmon that were
headed to Bristol Bay and Chignik. Last summer fishing was a
flop in the Egegik districts, the Arctic-Yukon-Kuskokwim (AYK)
region is suffering, and the Kvichak has been identified as a
river of concern. Bristol Bay has been losing ground every year,
and it's time to make a change on the Board of Fisheries.
4:50:13 PM
DON FOX, representing himself, Kodiak, said he is a retired
commercial fisherman who attends a lot of Board of Fisheries
meetings as a representative of the Kodiak Fish and Game
Advisory Committee. He urged confirmation of all four
appointments to the Board of Fisheries. He has observed that
John Jensen and William Brown both come to the meetings well
prepared; they work hard and are very approachable; and they
always take time to fully explain their votes. Michael Smith is
on a learning curve as a new member, and should be confirmed.
Susan Jeffrey is on the local borough assembly and he's known
her for 30 years. She works hard, looks at both sides of an
issue, is open to the public, doesn't have an agenda and knows
the fisheries. These qualities will serve well on the Board of
Fisheries.
4:52:10 PM
LINDA KOZAK, Consultant, Bering Sea crab industry, halibut hook
and line fishermen, and Pacific Cod pot and hook and line
fishermen, said she is speaking for all the current applicants
to the Board of Fisheries, particularly Susan Jeffery. As a
reporter, Ms. Jeffery was always willing to listen to both sides
of an issue. She was always fair and seemed to present the
issues without a slanted opinion, and has exhibited the same
qualities while serving on the local borough assembly. Susan
Jeffery is highly qualified, and will be a very good member of
the Board of Fisheries, she stated.
4:53:38 PM
RICKY GEASE, Executive Director, Kenai River Sportfishing
Association, stated support for all the nominees under
consideration. Dan Seamount served on the governor's Resources,
Energy and Environment transition committee and is well informed
on oil and gas issues. He should be reappointed to the AOGCC.
All the Board of Fisheries candidates are strong appointments.
Susan Jeffrey will serve well on the board. William Brown brings
strong economic and statistical skills, and has been a good
addition to the board. John Jensen has tremendous statewide
experience. He brings valuable knowledge about the commercial
fishery, which adds to the continuity of the board. Michael
Smith brings a tremendous amount of information from Interior
Alaska. He has a deep understanding and appreciation of
subsistence, commercial, sport and personal-use fisheries. He
commended the Governor's Office for bringing forth such a strong
slate of candidates.
[There was no motion regarding the Governor's appointments, but
the assumption was that the names would be forwarded to the full
body for confirmation.]
4:56:33 PM
There being no further business to come before the committee,
Co-Chair Wagoner adjourned the Senate Resources Standing
Committee at 4:56 pm.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Apr 4 Confirms.pdf |
SRES 4/4/2011 3:30:00 PM |
Confirmations |
| UFA Support Ben Brown CFEC - Senate Resources 040411.pdf |
SRES 4/4/2011 3:30:00 PM |
Confirmation |
| SB 85 CompStudyPresentation2Stakeholders.pdf |
SRES 4/4/2011 3:30:00 PM |
SB 85 |
| CompStudyStakeholderBriefing.pdf |
SRES 4/4/2011 3:30:00 PM |
SB 85 |