Legislature(2013 - 2014)BUTROVICH 205
01/24/2014 03:30 PM Senate RESOURCES
| Audio | Topic |
|---|---|
| Start | |
| Overview: Department of Natural Resources | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
SENATE RESOURCES STANDING COMMITTEE
January 24, 2014
3:32 p.m.
MEMBERS PRESENT
Senator Cathy Giessel, Chair
Senator Peter Micciche
MEMBERS ABSENT
Senator Lesil McGuire
Senator Anna Fairclough
Senator Click Bishop
Senator Hollis French
Senator Fred Dyson, Vice Chair
COMMITTEE CALENDAR
OVERVIEW: DEPARTMENT OF NATURAL RESOURCES
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
JOSEPH BALASH, Commissioner
Department of Natural Resources
Anchorage, Alaska
POSITION STATEMENT: Presented an overview of the Department of
Natural Resources.
FRANI HAVEMEISTER, Director
Division of Agriculture
Department of Natural Resources (DNR)
POSITION STATEMENT: Participated in the overview of the
Department of Natural Resources.
CHRIS MAISCH, Director
Division of Forestry (DOF)
Department of Natural Resources (DNR)
POSITION STATEMENT: Participated in the overview of the
Department of Natural Resources.
STEVE MASTERMAN, Acting Director
Division of Geological & Geophysical Surveys (DGGS)
Department of Natural Resources (DNR)
POSITION STATEMENT: Participated in the overview of the
Department of Natural Resources.
MARCIE MENEFEE, Executive Director
Mental Health Trust Land Office (MHTLO)
Department of Natural Resources (DNR)
POSITION STATEMENT: Participated in the overview of the
Department of Natural Resources.
BRENT GOODRUM, Director
Division of Mining, Land & Water
Department of Natural Resources (DNR)
POSITION STATEMENT: Participated in the overview of the
Department of Natural Resources.
BILL BARRON, Director
Division of Oil & Gas (DOG)
Department of Natural Resources (DNR)
POSITION STATEMENT: Participated in the overview of the
Department of Natural Resources.
BEN ELLIS, Director
Division of Parks & Outdoor Recreation
Department of Natural Resources (DNR)
POSITION STATEMENT: Participated in the overview of the
Department of Natural Resources.
TOM CRAFFORD, Director
Office of Project Management & Permitting (OPMP)
Department of Natural Resources (DNR)
POSITION STATEMENT: Participated in the overview of the
Department of Natural Resources.
ALLISON IVERSEN, Acting State Pipeline Coordinator
State Pipeline Coordinator's Office (SPCO)
Department of Natural Resources (DNR)
POSITION STATEMENT: Participated in the overview of the
Department of Natural Resources.
JEANMARIE DAVIS, Director
Support Services Division
Department of Natural Resources (DNR)
POSITION STATEMENT: Participated in the overview of the
Department of Natural Resources.
ACTION NARRATIVE
3:32:42 PM
CHAIR CATHY GIESSEL called the Senate Resources Standing
Committee meeting to order at 3:32 p.m. Present at the call to
order were Senators Micciche and Chair Giessel. Senators Dyson,
Fairclough, Bishop, McGuire, and French were excused. She
referenced Ch. 54 Sec. 613.1 of Mason's Manual of Legislative
Procedure to clarify that the quorum requirements for a
committee do not extend to testimony taken in hearings of a
public nature.
^Overview: Department of Natural Resources
Overview: Department of Natural Resources
3:33:53 PM
CHAIR GIESSEL announced the business before the committee would
be an overview of the Department of Natural Resources.
3:34:03 PM
JOSEPH BALASH, Commissioner, Department of Natural Resources,
stated that the presentation would be an overview of what the
department accomplished during 2013. He explained that DNR is
the primary land manager of 100 plus million acres of uplands
and 45-60 million acres of tidelands that it received under the
Statehood Act. A variety of divisions within DNR carry out
different functions to manage different lands according to their
resource potential.
COMMISSIONER BALASH reviewed the department organizational chart
and explained that he asked each division director to speak to
their own accomplishments in 2013. He reported that a lot of his
time was spent working on the "Heads of Agreement" that would be
discussed starting next week.
COMMISSIONER BALASH relayed that Acting Director of the Gas
Pipeline Project Office (GPPO), Eric Hatleberg, was unable to
attend the meeting because he was returning from Texas after
completing one of the monthly monitoring meetings for the AGIA
licensee. These meetings are to ensure that Alaska is receiving
the benefits of the obligations undertaken by TransCanada Alaska
under the terms of their AGIA license.
Some of the key accomplishments of this office include hosting
the Alaska LNG-17 outreach effort describing the advantages of
Alaska gas commercialization opportunities. Mr. Hatleberg and
his team were also able to contribute technical expertise
through oversight and review of the Black and Veatch Royalty
Study. In addition, the team met with numerous LNG buyers
throughout the year to maintain communication and readiness for
future commercial partnerships. The Gas Pipeline Project Office
also signed a formal, but nonbinding, nonexclusive, Memorandum
of Understanding (MOU) with Resources Energy, Inc. (REI), which
represents a consortium of commercial interests in Japan that
are interested in purchasing LNG. The original MOU with REI
targeted North Slope gas in 2019, but they have since refocused
their effort for a smaller volume with a supply center in Cook
Inlet.
3:41:00 PM
FRANI HAVEMEISTER, Director, Division of Agriculture, Department
of Natural Resources (DNR), stated that the division fulfills
its mission to promote and encourage the agriculture industry
through a variety of components. She explained that during the
summers of 2012 and 2013, the Inspection Section conducted pest
surveys on diseases and pests of concern to agriculture, natural
resources and international trade. The presence or absence of a
pest determines treatment that may or may not be necessary to
exporting a product such as timber. Inspections were conducted
at the U.S. Canada border in cooperation with Customs Border
Patrol in an effort to evaluate pest pathways and movement of
products of concern. In FY13, the Inspection Section performed
timber and agricultural export certification on over $143
million of timber bound for Korea, China, and Japanese markets.
The Land Section staff continues to identify state land with
suitable agriculture soils. The agriculture land designations
increased by 35,000 acres in the Yukon Tanana Area Plan, and
discussions have continued with farmers and stakeholders
regarding the Agricultural Land Program.
The Plant Materials Center is a 407 acre farm that produces seed
for grain and native grass growers and certified seed potatoes.
Variety trials were conducted for onions, asparagus, apple
rootstock and potatoes. The Center is currently working with
ADF&F and DEC on efforts to control the spread of Elodea.
The Marketing Section increased Alaska Grown Farm membership by
13 percent and has a robust Facebook presence. The Restaurant
Reward Program had 21 participating restaurants in 2013, which
increased the use of Alaska grown by 44 percent over the
previous year. The number of markets able to accept Supplemental
Nutrition Assistance Program (SNAP) doubled in 2013, bringing an
additional $30,000 to Alaska markets throughout the state.
The Farm to School program was selected to receive the Alaska
Community Service Award for health for making a significant
contribution to improving the health of Alaskans. The program
has provided on-farm food safety workshops to 50 producers, and
three quarters indicated they would change their farming
practices as a result of what they learned at the workshop.
School Food Service directors indicated that, as a result of the
Farm to School Program, local foods were served more often in
schools throughout the state. Forty-seven of Alaska's 54 school
districts are actively engaged in this program and the state is
recognized as a national leader in the use of this model.
The Alaska Food Resources Working Group was formed through
Administrative Order 265 and HCR 1. The objective of this order
is to improve the health of state residents, increase food
security, strengthen local economies, and encourage community
development. This group will provide recommendations for policy
changes that will increase the use of locally grown food, which
will provide additional markets for Alaska producers.
3:45:53 PM
CHRIS MAISCH, Director, Division of Forestry (DOF), Department
of Natural Resources (DNR), reviewed the core mission of the
division, which is to serve Alaskans through forest management
and wild land fire protection. He directed attention to a
picture of Alaska wood pellets that are produced in North Pole
for both residential and commercial heating purposes. The wood
comes from the Tanana Valley State Forest.
As a result of the Governor's Alaska Timber Job Task Force
recommendations, DOF established a "Roads Office" and hired two
logging engineers to help with infrastructure development and
access projects on state forest lands; is promoting the proposed
Susitna State Forest; and is using a $2 million CIP to develop
infrastructure to access state forest parcels on Gravina Island
and Edna Bay in Southeast.
In Tok, DOF offered a 25-year, long-term timber sale to help
support a heat and power project for Alaska Power and Telephone.
The sale is for 35,000 tons of green biomass annually, and it is
currently available as an over-the-counter sale. Additionally,
DOF sold 16,422,000 board feet of lumber to 37 businesses
throughout the state; provided direct and indirect support to
105 woody biomass projects; and continues to work with the U.S.
Forest Service to implement the 2008 Tongass Land Management
Plan (TLMP) to supports the remaining timber industry in
Southeast.
3:49:22 PM
MR. MAISCH reviewed the key accomplishments of the Wild Land
Fire Program:
· Safely and successfully responded to the fourth largest
fire season in the past 10 years and second largest in the
past 5 years. Six hundred thirteen fires burned 1.3 million
acres.
· Continued build out of the Integrated Fire Management
software tool to improve initial attack and overall fire
management.
· In the area of aviation, DOF procured one Aero Turbo
Commander and will purchase a second aircraft this month.
These will provide a safer air attack platform and better
training opportunities.
· At the Wildland Fire Crewboss Academy, 20 students from 17
rural communities received advanced training. He noted that
the two crew bosses pictured are each in charge of a 19
person emergency firefighter type II crew.
· DOF partnered with UAF Wildland Fire Program to deliver the
Advanced Firefighter training for the 2014 Academy.
Students will receive university credit. The division
offered 14 internships for past graduates of the basic and
advanced wildland fire academies.
· The division competed successfully for over $1 million in
competitive funds for hazard fuel mitigation projects. Four
projects were awarded in Mat-Su, Fairbanks, Kenai, and Tok
to help reduce high-risk fuels around communities.
· Finally, the division developed a project and concept paper
for the Northern wildland fire center in Interior. This was
done in collaboration with the Cold Climate Research Center
to replace outdated, high-maintenance facilities.
3:53:48 PM
STEVE MASTERMAN, Acting Director, Division of Geological &
Geophysical Surveys (DGGS), Department of Natural Resources
(DNR), stated that the DGGS mission is to determine the
potential of Alaska land for production of metals, minerals,
fuels, and geothermal resources, the locations and supplies of
groundwater and construction material, and the potential
geologic hazards to buildings, roads, bridges, and other
installations. He briefly reviewed the accomplishments of the
six sections within DGGS.
The Mineral Section was heavily involved in the strategic and
critical Minerals Project in 2013. They mapped, sampled and
assessed about 2,600 square miles between Paxson and Talkeetna
looking at the potential for platinum group elements. As part of
this project, the group analyzed over 10,000 samples. The
Airborne Geophysical program acquired or published 4,578 square
miles of airborne geophysical data in four surveys statewide.
DGGS also assessed and mapped 212 square miles in the Styz River
region, which has several advanced-stage exploration copper and
gold occurrences.
The Energy Section mapped 250 square miles in the west Cook
Inlet basin focused on the Mesozoic petroleum system. In the
process they discovered two new oil-stained sandstones. On the
North Slope, the Energy Section collaborated with the University
of Alaska, Fairbanks (UAF) and the U.S. Geological Survey (USGS)
on the shale oil potential. Finally, the Energy Section
completed a compilation of geothermal data for Alaska, and it is
ready to be published both digitally and in hard copy.
3:57:12 PM
SENATOR MICCICHE asked him to define the purpose of airborne
geophysical data and how it is cataloged.
MR. MASTERMAN explained that various types of airborne
information are collected, but magnetic data is typically
collected to look at the magnetite content and to map the
various rock formations some of which may be subsurface.
Information is also collected about the electrical conductivity
of the rocks in order to map the geology. One aspect of airborne
geophysics is that mineral deposits commonly have characteristic
signatures in both magnetic and resistivity information. The
geology and airborne geophysical data can be used directly as a
prospecting tool. He noted that there is generally a notable
spike in industry activity when DGGS releases the airborne
geophysical data.
3:58:40 PM
He explained that the Geological Materials Center is the state's
repository for its collection of geological samples from oil and
gas wells and mineral properties. The Center is being relocated
to an improved facility in downtown Anchorage that will allow
industry to review and study the samples that are housed there.
The grand opening is planned for September 2014.
The Engineering Geology Section initiated a hydrogeology program
to look at groundwater availability and use, particularly with
regard to resource development. The initial focus will be oil
and gas occurrences on the North Slope and how the groundwater
interacts. They also completed engineering and geology mapping
for DOTPF at the Yukon River Bridge; field investigations along
the various pipeline corridors from Livengood to Prudhoe Bay;
and work on the Susitna-Watana Dam. Another relevant activity is
the tsunami inundation mapping, which is of particular interest
to Southcentral and the coastal communities. These reports are
also available online. Finally, the Engineering Geology Section
worked on coastal hazard assessments, primarily for storm surges
and erosion issues in coastal communities in Southwest Alaska.
The Volcanology Section is part of the Alaska Volcano
Observatory, which is a collaboration between USGS, UAF, and
DGGS. This group monitors the volcanic activity in the state and
reports it to interested parties.
The Geological Communication Section launched four datasets in a
new interactive online map series. They published 52 new
geologic maps and reports, distributed 2,579 publications, and
recorded over 6 million web page views. DGGS also has Facebook
and Twitter accounts and a presence on Linked In.
4:02:59 PM
MARCIE MENEFEE, Executive Director, Mental Health Trust Land
Office (MHTLO), Department of Natural Resources (DNR), reviewed
the mission of the MHTLO, which is to protect and enhance the
value of Alaska's mental health trust lands, including minerals,
coal, oil and gas, timber, and real estate, while maximizing
revenues from those lands over time to support mental health
services. She explained that the Trust Land Office has 16
professional staff who have different expertise for the
different assets. The office has been active for the last 19
years and has generated over $150 million in revenue. The Board
of Trustees provides input and is interested in the Trust Land
Office increasing the annual revenue goals. As a result, the
Trust Land Office has spent time over the past two years
planning how to better maximize the current programs within the
Trust Land Office to look at a five year and ten year increase
in revenue for the beneficiaries of the Trust. She reviewed some
of the key accomplishments in 2013.
The Trust Land Office conducted two small timber sales
generating about $1 million in revenue in Southeast. Significant
progress was also made in a federal exchange of Trust land for
Tongass National Forest land to preserve the Trust's timber
portfolio. The other initiative is to collaborate with the
University of Alaska and State Forestry on ways to get the
timber resources owned by state agencies in Southeast to market.
One of the hallmarks of revenue for the Trust has been the land
sale programs, whether competitive or negotiated. Less than two
percent of the million acres that the state received for the
Mental Health Grant have been sold, and those lands generated
about $4 million in revenue. The land section within the Trust
Land Office is subdividing larger parcels and building roads
into the subdivisions for additional revenue.
Coal and hard rock mining exploration and development
contributed over $5 million in revenue, primarily from Fort
Knox, Chuitna, Chickaloon and Livengood. Marketing the Trust
mineral lands has become more important in the last several
years, and 350,000 acres are currently leased for either
exploration or production of minerals. The goal is to increase
that to 450,000 acres, which would be about half the Trust
acreage.
Oil & Gas is a newer effort that is producing some revenue for
the Trust. The small gas sale in Cook Inlet along with some
other producing assets netted over $3 million in revenue last
year.
The real estate program is in its second year and it brought in
just over $0.8 million. Acquisitions include a warehouse and
several commercial buildings in Anchorage. The expectation is
that the program will continue to generate revenue.
4:11:03 PM
SENATOR MICCICHE asked if Trust timber is a growth industry that
could possibly get Alaska back in the timber industry in years
to come.
MS. MENEFEE said it's a possibility and the Trust Land Office
would like to be part of that goal. If the exchange with the
USFS is successful, it will hopefully result in a sustainable
annual cut, but that assumes that the industry is still alive.
4:12:45 PM
BRENT GOODRUM, Director, Division of Mining, Land & Water,
Department of Natural Resources (DNR), stated that for the last
two years the division has been working in earnest to eliminate
the permitting backlog. In 2013 they reduced the backlog by 53.5
percent while issuing 794 authorizations for permit and 724
authorizations for applications for permits to mine in Alaska. A
critical component of modernizing the permitting project is
through the Unified Permit project. Last year the division
introduced an electronic case file for permits and this year it
will do the same for water rights.
Statewide projects the division has worked on include the Port
McKenzie Rail Extension, Roads to Resources projects, North
Slope Oil and Gas exploration and development projects, AIDEA's
LNG Trucking decision, and the City and Borough of Juneau cruise
ship dock decision.
Last year the division was successful in amending the 2005
Bristol Bay Area Plan with significant public participation and
input. The amended plan increased the wildlife habitat
classifications by over 2.6 million acres and increased
classifications of 1.3 million acres of public recreation areas
within those plans. The division also worked closely with the
BLM to come to a cooperative agreement to help resolve long
standing Native Allotment applications. A voluntary program
allows those applicants to consider selecting substitute parcels
on state-selected lands. Finally, the division undertook
stewardship efforts in cooperation with DEC to remove submerged
vessels in the Homer area that put mariculture farms at risk.
4:17:14 PM
BILL BARRON, Director, Division of Oil & Gas (DOG), Department
of Natural Resources (DNR), stated that he would highlight just
a few interesting accomplishments and projects that have been
started. The first is the more efficient processing of lease
sales. The Leasing Section issued 90 leases on the North Slope
in the last lease sale and was able to process all of those
within seven weeks of the sale; whereas the historical timeframe
has been upwards of 10-12 months.
Along the same lines, DOG has used the authority the legislature
granted last year to extend leases that are in their primary
term but about to expire. Six applications were submitted after
that legislation passed and the division has issued five 2-year
lease extensions that incorporate bonding and firm work
commitments.
MR. BARRON highlighted the recent effort that the Resource
Evaluation Section has made in combination with the Department
of Energy and the USGS relative to methane hydrates on the North
Slope. The team analyzed seismic and well data and identified
significant prospects for methane hydrates on state acreage.
That block was pulled from the lease sale and dedicated for
research and development in association with DOE under an MOU
that former commissioner Sullivan signed at LNG-17. This is the
largest area for methane hydrate research in the country so it's
a tremendous opportunity.
Accomplishments in the Commercial Section include participation
in the DNR study to understand LNG markets and the efforts to
develop a method to mitigate the State's exposure to risk of a
lessee's failure to dismantle, remove, and restore an offshore
platform in Cook Inlet. He said the latter is a highly academic
and well-written white paper that he would encourage members to
read.
The Petroleum Systems Integrity Office (PSIO) recently provided
Alyeska Pipeline Services with very clear technical guidance
when they had a problem with corrosion coupons that failed and
ended up in the line. Finally, the key accomplishment of the
Royalty Section is that it managed $2.5 trillion in royalties.
4:21:32 PM
SENATOR MICCICHE asked Mr. Barron for help locating the white
paper that the Commercial Section published.
MR. BARRON agreed.
4:21:50 PM
BEN ELLIS, Director, Division of Parks & Outdoor Recreation,
Department of Natural Resources (DNR), stated that he recently
sent a letter to each legislator highlighting what is happening
in the park units that they represent. He noted that statewide
views were also available. He said he looks forward to returning
to Juneau in February to meet with each legislator or staff to
hear about constituent perceptions and thoughts on state parks
because that input helps guide the division on management and
other issues facing state parks. The division has a Facebook
page for Alaska State Parks and encourages new members.
The Division of Parks & Outdoor Recreation focuses on six areas,
the largest of which is Park & Outdoor Recreation Management.
The division oversees 3.5 million acres which makes it the
largest state park system in the nation. Wood-Tikchik State Park
is the largest park with 1.6 million acres and Chugach is third
with 0.5 million acres. State Parks has 82 permanent employees,
23 non-permanent employees and 800 volunteers. He described the
infrastructure that includes 124 park units and 72 campgrounds.
MR. ELLIS explained that the Alaska Trails Office (ATO) oversees
the federal grant funded Recreational Trails Program. About half
of the annual $1.6 million is dedicated to communities and local
trail programs on a competitive basis. The other half of the
grant funds support the over 900 miles of developed Alaska State
Park trails. ATO also oversees the Snow Track Program that
receives up to $250,000 each year from snow machine registration
fees. The funds are primarily used to groom trails and then to
conduct safety and educational programs. He said the demand far
outstrips the available funding, but the program does a good job
of putting money on the ground in the areas that are heavily
used by snow machine users. The First Day Hike is another
program that ATO has been involved in for several years. All 50
state parks participate and have the common goal of getting
people outdoors. He noted that the program at Hatcher Pass has
been very successful and has grown every year.
The Office of History & Archaeology oversees a $2.5 million
budget that is primarily federal funds. The staff reviews about
2,600 projects a year with the goal of protecting the
historical, archaeological, and cultural aspects of the state's
resources. They work with both the Corps of Engineers and
communities.
The Design & Construction Section is an enterprise staff of
engineers, landscape architects, and interpreters. Only 2 of the
15 positions are paid with general funds, and the rest are paid
from project funds for deferred maintenance or capital
improvements. The division also generates revenue by contracting
with state and federal agencies to do design and construction
work.
The Office of Boating Safety has held nearly 3,000 classes in
school rooms since it began and has reached over 100,000
students. One of its very successful programs is the federally
funded "Kids Don't Float" program. Working in conjunction with
communities, this program has provided nearly 50,000 lifejackets
and has documentation that 24 Alaskan children survived cold
water immersion because they were wearing a lifejacket courtesy
of this program.
MR. ELLIS highlighted that the South Denali Visitor Center
Complex is the first developed campground in Alaska State Parks
in 30 years. In 2009, the legislature started to provide funding
for this $47 million project. To date, about $20 million in
state funds, $1 million in corporate donations, and $1 million
in federal grants have accumulated and been put to work. This
last summer State Parks broke ground for the visitor center and
put in 23 miles of gravel road to the campground site that's
been cleared and brushed. The goal next year is to put in 35 RV
campsites and 15 walk-in campsites. He pointed out that this
project has improved economic development along 23 miles of the
Parks Highway. He encouraged members to visit the complex once
it opens.
4:33:23 PM
TOM CRAFFORD, Director, Office of Project Management &
Permitting (OPMP), Department of Natural Resources (DNR),
explained that OPMP's role is to coordinate the permitting
process for large development projects in the state. The office
has no regulatory authority but it works to coordinate the
participation of the different state regulatory agencies and
tries to improve permitting efficiencies. OPMP is also involved
with coordination of state agency review and comment on a
variety of federal policy initiatives and programs.
He explained that much of OPMP's funding is from statutorily
designated program receipts. Private sector projects are funded
through MOUs that OPMP enters into with project applicants. If
the applicant is a state agency, funding is through a
reimbursable services agreement.
MR. CRAFFORD reviewed the key accomplishments from 2013,
starting with the MOU agreements that OPMP signed for oil and
gas and mining.
Oil and Gas:
· Buccaneer for projects in Cook Inlet.
· Buccaneer Cosmo for the offshore gas field near Deep Creek.
· LINC for their Umiat property in the southeast corner of
NPR-A.
· NORDAQ experimental stage project in the NPR-A.
· ConocoPhillips development permitting for their Greater
Moose's Tooth property in the NPR-A.
Mining:
· Graphite One for the Graphite Creek Project on the Seward
Peninsula northeast of Teller.
· Free Gold's Golden Summit Project near Cleary Summit and
the Fort Knox Mine.
OPMP also coordinated:
· A complex, multi-year special use permit for Apache's
seismic exploration in the Kenai National Wildlife Refuge.
· State agency participation and review of the U.S. Fish &
Wildlife Services' Izembek Land Exchange Environmental
Impact Statement for road construction to connect the
community of King Cove to the all-weather airport in Cold
Bay, although this was ultimately denied.
· State agency review of the final draft of the Environmental
Protection Agency's Bristol Bay Assessment regarding mining
and potential impacts on fish in the Bristol Bay watershed.
EPA issued the Final version on January 14, 2014.
· Red Dog mine's first third-partyenvironmental audit since
it started in 1989, which will feed into new permit
conditions. State waste management permits for tailings,
waste rock, and reclamation plan approval now require these
audits every five years.
· State agency approval of the underground expansion of the
Pogo mine to the East Deep deposit. OPMP also coordinated
the final approvals for expanded dry stack tailings
storage.
· State agency participation in the U.S. Forest Service led
EIS for the expansion of the Greens Creek Mine dry stack
tailings facility.
· Continued review of the application documents and
initiation of the NEPA permitting process for the Donlin
gold project near Crooked Creek on the Kuskokwim River.
4:42:22 PM
ALLISON IVERSEN, Acting State Pipeline Coordinator, State
Pipeline Coordinator's Office (SPCO), Department of Natural
Resources (DNR) stated that the mission of this office is to
issue leases of state land for pipeline rights-of-ways and
implement state policy in AS 38.35.010 concerning the
development, use, and control of a pipeline transportation
system within the state.
She described the following key accomplishments:
· SPCO worked closely with BP Transportation (Alaska) Inc. to
transfer the Badami pipeline rights-of-way leases to Nutaaq
Pipeline, LLC. This is a conglomerate of Savant Alaska and
ASRC Exploration.
· SPCO released its 2013 Annual Report, which is more user
friendly. It lays out the key functions of DNR and other
state agencies that are co-located within SPCO. It also
summarizes the lessee's annual reports and details SPCO's
compliance efforts.
· SPCO worked with ConocoPhillips to facilitate the change-
of-service for the Oliktok pipeline from natural gas
liquids to natural gas. This should be finalized by mid-
2014.
· SPCO has been working on an amended application from Trans-
Foreland Pipeline Company. This initially was sponsored by
Cook Inlet Energy and is currently sponsored by Tesoro. It
is a 28 mile pipeline under Cook Inlet. A preliminary
decision is anticipated very soon.
· SPCO has been working closely on several projects for a
North Slope LNG facility with trucking to Fairbanks. The
office completed the process and issued a rights-of-way
lease for Spectrum LNG and completed the commissioner's
analysis and proposed decision for the Polar LNG project.
An additional application for the AIDEA project is
anticipated.
· Last year SPCO adjudicated and finalized five amendments to
the TAPS right-of-way lease to add minor amounts of land
for critical upgrades, regular maintenance, and
improvements to the system.
· SPCO continues to work with Alyeska on the implementation
of their corrective action following the coupon failure.
This incident was a good example of utilizing state and
federal expertise and coordinating to speak with one voice.
· Last year SPCO continued to work closely with the Alaska
Stand Alone Pipeline (ASAP) sponsored by AGDC, and the
Alaska LNG Pipeline coordinating efforts for the permitting
activities during the field season. A very large field
season is anticipated for both projects this coming summer.
The office is coordinating and issuing DNR permits and also
coordinating efforts with DOT, ADF&G, and the DNR Office of
History and Archaeology. Although there may not be many
permits issued, they cover very large activities. For
example, one permit for the ASAP covered more than 200
boreholes.
· Finally, SPCO spent considerable field time overseeing the
initial construction of the Point Thomson Export Pipeline.
Last winter about 2,200 vertical and horizontal support
members were installed. In the next several months the
construction of the pipeline will be finalized.
4:47:29 PM
JEANMARIE DAVIS, Director, Support Services Division, Department
of Natural Resources (DNR) explained that SSD provides the
administrative support necessary to keep all the foregoing
activities going forward. The department itself has about 1,000
employees in 32 locations statewide, which sometimes makes
coordination challenging. The Information Technology Section
provides IT infrastructure required for managing state land
records. The Financial Services Section pays the bills and
records the revenue for the state. This amounted to about $2.6
billion last year. The Budget Section helps develop and support
the budget and helps with legislative presentations on the
budget. The Procurement Section does everything from supporting
small equipment purchases to complex contracts. SSD also
provides limited human resources support. SSD also administers
the state recording offices statewide.
She described the following key accomplishments:
· SSD implemented eRecording in 31 of the 34 recording
districts. This allows customers to file their business
documentation electronically. Last week the last three
recording districts implemented eRecording making Alaska
the fourth state to implement statewide eRecording.
· The IT Section supported, especially in the Division of
Mining Land & Water, the efforts with the permitting
initiative, working with automation, installing the
business process, management servers and software, and
providing programing support and contract management.
· Finance and procurement staff are spending significant time
in collaboration with the Department of Administration on
the Integrated Resource Information System (IRIS) project.
This is a statewide administrative systems replacement for
accounting, financial, procurement, payroll and human
resource management.
4:52:07 PM
SENATOR MICCICHE asked if the Support Services Division will
handle the upcoming hunting permit drawings.
MS DAVIS answered no.
CHAIR GIESSEL thanked Commissioner Balash for a good
presentation.
COMMISSIONER BALASH committed himself and DNR's world-class
managers to do what it takes to help the committee get its
business done on time this year. He stated that it was a
pleasure to work with the fine men and women in the department.
4:53:28 PM
CHAIR GIESSEL asked how he would manage the cut in DNR's budget
that's in the Governor's proposed budget.
COMMISSIONER BALASH explained that the Gas Pipeline Project
Office is a line item that was built into the DNR's base, and
with the elimination of that office they're able to realize a
net negative for the agency. The department was able to maintain
funding for all the other divisions and in some cases address
some much needed requirements for personnel costs and
increments, especially in the Division of Parks.
CHAIR GIESSEL thanked the presenters.
4:54:52 PM
There being no further business to come before the committee,
Chair Giessel adjourned the Senate Resources Standing Committee
meeting at 4:54 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SRES DNR Overview Balash 20140124.pdf |
SRES 1/24/2014 3:30:00 PM |